PALL - PALL: A China Recovery Beneficiary

2024-03-23 11:18:13 ET

Summary

• Palladium benefits from stringent emission regulations and technological advancements, making it a potential hedge against inflation and currency devaluations.
• The abrdn Physical Palladium Shares ETF offers a cost-effective and convenient way to invest in palladium, backed by physical palladium held in vaults.
• China's economic growth and demand for palladium are pivotal, but limited domestic reserves and geopolitical risks highlight potential vulnerabilities to supply disruptions.

I've recently been writing about precious metals more broadly here on Seeking Alpha, and think it's worth getting a bit more granular on specific commodities like Palladium. As a critical component in automotive catalytic converters, palladium benefits from stringent emission regulations driving demand, especially with the shift towards petrol engines where it's more effective than platinum. Additionally, its rarity, coupled with supply constraints primarily from Russia and South Africa, creates potential for price appreciation amidst geopolitical tensions and mining challenges. With technological advancements, such as fuel cells for clean energy, the demand for palladium may surge, offering a hedge against inflation and currency devaluations. ...

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