The price of palladium did not show normal growth compared to other precious metals. Although palladium was one of the best products in terms of price growth last year, this year is not going very well and it seems that a new recovery in palladium prices should not be expected.
Stock market traded funds (ETFs) have shed nearly four tonnes of palladium in the last four weeks, according to the latest report from German precious metals trading company Heraeus. Although global demand for investment in palladium ingots has increased slightly, global palladium purchases remain relatively low.
In 2010, palladium rose in price at an incredible rate, as world car production recovered significantly from the crisis, during which vehicle sales fell and therefore demand for palladium fell. The data show that some car manufacturers were unable to reach pre-crisis production levels, but industrial demand for palladium remained very strong last year, which contributed to the rise in the price of palladium: after falling to a low of 161 dollars per ounce in the fall of 2008, palladium was able to reach a record price of $ 855 per ounce in February 2011, meaning that the price of palladium has risen at least four times since the onset of the financial crisis.
In addition, the significant rise in palladium prices last year was supported by concerns about a future palladium deficit in the world market, especially after the announcement by major palladium producer Norilsk Nickel that state palladium reserves in Russia could be depleted by the fall of 2010. the same period of time, strikes began in South Africa, the largest producer of palladium; all this led to a decrease in the supply of palladium to the world market last year and therefore contributed to the increase in palladium prices.