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Most of the palladium mined is needed for the production of exhaust catalysts for gasoline engines. However, this valuable metal is also used in electrical engineering, dental technology, and the jewelry industry. The most important technology of the future is fuel cells, in which this raw material is used as a cathode material.
Why could palladium be an interesting investment?
- The palladium market is characterized by frequent shortages, with demand currently exceeding supply. The World Platinum Investment Council (WPI) does not expect this trend to reverse before 2028.
- Conventional cars will remain important for the foreseeable future, especially in emerging markets such as China and India. Despite the trend toward electric cars in China, conventional cars will still account for at least 20% of the market in 2029 if this trend continues. In India, only 20% of passenger cars produced will be electric by 2030. This means that they will continue to be an important driver of demand.
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