Top Palladium Stocks With Near US$1,900 Record Surge

Auto-catalyst metal palladium soared to a record just shy of the US$1,900 mark early Monday, while gold bullion edged higher as uncertainty over US-China trade talks took center stage ahead of a December 15th deadline for new U.S. tariffs.

Also providing support to bullion, China’s exports shrank for the fourth consecutive month in November, underscoring pressure from the ongoing trade war.

Global markets now await the US Federal Reserve’s two-day meeting starting on Tuesday for signals regarding its monetary policy. The central bank is expected to highlight the economy’s resilience and keep interest rates on hold in the range of 1.5 to 1.75 percent.

The spot price of palladium was up $3.09, or 0.2 percent, and climbed to an all-time high of US$1,898.50 an ounce and was last up 0.19 percent at US$1,881.43. Platinum and silver were up 0.2 percent at US$897.36 and US$16.60 an ounce, respectively. Elsewhere, spot gold was up 0.12 percent to US$1,461.15 per ounce. U.S. gold futures settled down 0.2 percent at US$1,464.90.

Palladium has risen nearly 50 percent in 2019 on a sustained supply squeeze, and has constantly been breaking records, despite a weakening global auto sector. Increasingly strict emissions regulations globally are raising the palladium in automotive catalytic converters for gasoline-powered cars and 2020 could see the highest number of regulations.

Owing to properties such as stability, conductivity, and durability electronic and safety systems of automobiles, Platinum Group Metals (PGMs) are used as a catalyst in fuel cells and catalytic converters. It’s the science and specific properties inherent in palladium that enable vehicles to run cleaner and more fuel efficiently. Further, stringent standards for emissions of diesel vehicles are expected to drive the market as auto-catalysts are used to control emissions. In addition, rising demand for platinum metal based jewelry from developing countries is expected to drive the PGMs market.


(Image courtesyNew Age Metals Inc. Click to enlarge)


High Demand in China

Growing demand and production of automobiles of all types is expected to drive markets…especially in the developing countries of the Asia Pacific region. Changing lifestyle and rising disposable income is driving the automobile market in this region.

Africa was the largest producer of PGMs, but due to labor disruptions and safety issues mining of these metals has been stopped and some of the marginal mines have closed, which is affecting the global supply. Europe followed the Asia Pacific region in consumption.


(Image courtesyNew Age Metals Inc. Click to enlarge)


Some of the key players in this market include Stillwater Mining Co. (NYSE: SWC), Anglo American Platinum Ltd. (AAL: GPPY), Impala Platinum Holding Ltd. (JSE: IMP), Lonmin plc. (LSE‎: LMI), JSC MMC Norilsk Nickel (OTC: NILSY), Eastern Platinum Ltd. (TSX: ELR-T), Glencore Xstrata plc (OTC: GLCNF), and North American Palladium Ltd. (TSE: PDL), among others.

In a recent Stockhouse podcast, we invited three expert panelists from New Age Metals Inc. (TSX: V.NAM, OTCQB: NMTLF, Forum) and Generation Mining Ltd. (CSE:GENM, OTC:GENMF, Forum) to discuss the metals & mining sector’s hottest PGM – palladium.

Listen to podcast below:

FULL DISCLOSURE: New Age Metals Inc. and Generation Mining Ltd. are clients of Stockhouse Publishing.