Yes, palladium is expensive. Since 2014, the price of palladium has significantly increased, rising from around $850 to above $2000 an ounce.
Palladium's high cost can be attributed to several factors:
- Scarcity: Palladium is a rare metal, making it inherently valuable.
- Demand: The primary use of palladium is in catalytic converters for automobiles, which reduce harmful emissions. Increased global demand for vehicles, particularly those with gasoline engines, drives up the demand for palladium.
- Supply Constraints: Production of palladium is concentrated in a few countries, such as Russia and South Africa. Any disruptions in supply can significantly impact prices.
Here's a table summarizing palladium's price trend:
| Year | Approximate Price per Ounce |
|---|---|
| Before 2014 | Around $850 |
| Current | Above $2000 |
The high price of palladium reflects its critical role in emissions control and the challenges in securing a stable supply.
