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The global demand for platinum and palladium is expected to increase over the next few years due to their use in the automotive industry and their role in the ecological transition.
Despite the fluctuations in their prices due to the health crisis which has severely penalized the automotive sector, the prices of palladium and platinum have been rising steadily for three years. These two metals are essential components in the manufacture of catalytic converters for internal combustion vehicles, as they reduce polluting emissions. Their demand should therefore be boosted over the next few years due to the tightening of anti-pollution standards in the automotive industry.
Another factor in the enthusiasm for these two metals: ” massive investments in hydrogen production will also boost their consumption”, says Jean-François Faure, director of AuCOFFRE.com, a platform for buying and selling precious metals.
Extremely rare metals
the palladium and platinum are indeed essential in the production of hydrogen and its use in the automotive sector. For example, platinum is an essential component of fuel cells, the batteries that transform hydrogen into electricity in vehicles. A technology that is of increasing interest to car manufacturers. “ In this context, the two metals have become assets that are very popular with investors. Demand for investment platinum nearly doubled globally between 2013 and 2020, from 935,000 to 1,554,000 ounces in 2020 », emphasizes Jean-François Faure.
With the prospect of rising demand, supply will struggle to keep up. Palladium and platinum are indeed extremely rare. They are mainly found first in South Africa and then in Russia. These two countries together provide between 75% and 85% of the world supply. Rising demand, limited supply, according to the law of the market, prices should increase in the short term.