While Gold has been the public face of metals as an investment class, the most recent price surge has primarily been driven by investors. And to those that may need a little reminding about market trends that are driven by investors where there is an absence of sound market fundamentals, the experience of property should be enough to justify extreme caution.
But if metals are to be part of any investment strategy, palladium is worth a look-in. As a precious metal, it has a very important role in the car industry. Car manufacturers use it to in the manufacture of catalytic converters, which is one of the major driving forces behind its rise. In fact, this is one area of manufacture that is tipped for continued growth in the years ahead. Palladium is one of three precious metals used in the manufacturing process. Platinum and rhodium are the other two.
According to Bloomberg reports, Palladium prices were up 10% over the last quarter, compared with declines for a range of other metals including gold and silver.
Globally, car sales exceeded 80 million for the first time ever in 2012 and are expected to see further growth that will exceed 82.7 million this year, according to various industry experts.