Back in January we commented about the benefits of holding both Platinum and Palladium in your portfolio and discussed the risk factors likely to boost prices.
We predicted that the palladium price would rise to approx. $825 by the second half of the year, today Palladium is even higher at $850! Platinum has also shot up from $1,391 in February to $1,471 by June.
Platinum and Palladium are key components for reducing pollution in the automobile sector and with demand in this area ever increasing it’s hard to see when these lustrous metals will turn bearish.
The most significant influence over both Platinum and Palladium Price Predictions are the mining strikes and accompanying difficulties surrounding workers’ wages and rights in South Africa. Today, a 5 month long strike in South Africa is bumping up both the Platinum and Palladium price. Furthermore with the mining minister quitting his position as mediator it doesn’t look like things are going to be resolved anytime soon.
For now, pay talks are likely to be the main topic of conversation, though so far there has been no improvement in the position which has the effect of pushing Palladium to reach its highest price in three years!
We can only see both Platinum and Palladium prices will continue to rally as demand exceeds supply for the third consecutive year. So far in 2014 palladium has rallied by nearly 20% which is remarkable.
At KK Bullion we have seen a stream of investors adding both Platinum and Palladium to their portfolios and with the strike still in full swing it is likely these risk factors will continue pushing up these precious metals for some time, squeezing the prices ever higher.
Don’t forget Palladium was the shining star of 2013 being the only metal to perform positively and with the demand for automobiles only getting stronger especially from mega consumers China and the US the bullish demand is likely to continue well into 2015 too.