Chart of the week: the shine will come off palladium

Palladium price chart

Palladium, used mostly in catalytic converters in petrol engines, is 2017’s best-performing commodity with a 30% gain. Mine production has fallen behind demand every year since 2012, and stockpiles appear to be running low.

But the rally could run out of puff soon, reckons Stephanie Yang in Barron’s. Demand is likely to slip now that car sales are softening in both China and the US; year-on-year light vehicle sales are down 2% in 2017 so far. Moreover, speculators have piled into the small market of late, which increases the scope for a sharp reversal once bullishness fades. 


Claim 12 issues of MoneyWeek (plus much more) for just £12!

Let MoneyWeek show you how to profit, whatever the outcome of the upcoming general election.

Start your no-obligation trial today and get up to speed on:

  • The latest shifts in the economy…
  • The ongoing Brexit negotiations…
  • The new tax rules…
  • Trump’s protectionist policies…

Plus lots more.

We’ll show you what it all means for your money.

Plus, the moment you begin your trial, we’ll rush you over THREE free investment reports:

‘How to escape the most hated tax in Britain’: Inheritance tax hits many unsuspecting families. Our report tells how to pass on up to £2m of your money to your family without the taxman getting a look in.

‘How to profit from a Trump presidency’: The election of Donald Trump was a watershed moment for the US economy. This report details the sectors our analysts think will boom from Trump’s premiership, and gives specific investments you can buy to profit.

‘Best shares to watch in 2017’: Includes the transcript from our roundtable panel of investment professionals – and 12 tips they’re currently tipping. The report also analyses key assets, including property, oil and the countries whose stock markets currently offer the most value.