Palladium’s Price Falls To 6-1/2 Year Low
In early Asian markets on February 8, the spot price dropped below $890.00. It is now just a few dollars higher than the price of platinum.
The COMEX futures market close on Wednesday, February 7, was about $901.00. That was its lowest close since it settled at $892.00 on August 15, 2017.
In early Asian markets on February 8, the spot price dropped below $890.00. It is now just a few dollars higher than the price of platinum.
I have previously explained that the price of palladium was destined to fall by a huge percentage from its peak COMEX close at $2,982.00 on May 4m 2021. It has now dropped 70% and has further to fall.
The high price of palladium in recent years, especially in comparison to that of platinum, finally persuaded the auto and truck manufacturers to scale back on using palladium in catalytic converters and use more platinum instead. In these devices, you often needed about two ounces of palladium to perform the same function as one ounce of platinum. The use of palladium in catalytic converters has been the largest use of this metal.
The switch back to using more platinum in catalytic converters is not a quick task. It was expected to take at least three years to fully implement.
Over the years, the supply and demand for palladium have been in an approximate long-term balance. With decreased demand from the automotive industry, it will likely experience a surplus of supply in 2024.
Going forward, I anticipate that palladium’s price will continue to decline, possibly to almost half of that for platinum.
The answer to last week’s numismatic trivia question.
Last week, I asked—Who was the first living person to be depicted on US coins or currency? There were two Interest Bearing Notes authorized under the Act of March 2, 1861, that, when issued, featured living Americans. The $50.00 denomination, Friedburg #202a, bore the portrait of the late President Andrew Jackson at the left of the front and a portrait of Salmon P. Chase, who became Treasury Secretary on March 7, 1861, at the right. The $500.00 denomination, Friedburg #202c, had the bust of Winfield Scott, who served as Commanding General of the U.S. Army from July 5, 1841, to November 1, 1861, at the top center of the front. Chase’s portrait appeared on multiple U.S. currency issues during the time he served as Treasury Secretary.
This week’s trivia question
Here’s this week’s question. Which U.S. coin issue exclusively honored those who fought for the Confederacy during the U.S. Civil War? Come back next week for the answer.
Patrick A. Heller was honored as a 2019 FUN Numismatic Ambassador. He is also the recipient of the American Numismatic Association 2018 Glenn Smedley Memorial Service Award, 2017 Exemplary Service Award, 2012 Harry Forman National Dealer of the Year Award, and 2008 Presidential Award. Over the years, he has also been honored by the Numismatic Literary Guild (including twice in 2020), the Professional Numismatists Guild, the Industry Council for Tangible Assets, and the Michigan State Numismatic Society. He is the communications officer of Liberty Coin Service in Lansing, Mich., and writes Liberty’s Outlook, a monthly newsletter on rare coins and precious metals subjects. Past newsletter issues can be viewed at www.libertycoinservice.com. Some of his radio commentaries titled “Things You ‘Know’ That Just Aren’t So, And Important News You Need To Know” can be heard at 8:45 a.m. Wednesday and Friday mornings on 1320-AM WILS in Lansing (which streams live and becomes part of the audio archives posted at www.1320wils.com).
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