Price hikes in the last decade and closure of South African mines have made precious metals hit price records.
The price of palladium has risen for the 15th straight day, exceeding the highest gold price ever, reports Bloomberg.
On Thursday, the rare white metal traded at a record high of $1,940.34, which increased cumulative earnings for palladium this year to 54%.
Thursday’s palladium index boosted it beyond the record ounce of gold, which was $ 1,921.17 in 2011.
These changes come after South African mines were closed for 24 hours due to a lack of electricity. South Africa is ranked as the second largest producer of palladium , while Russia is currently seen as the leader in metal production.
Commerzbank analyst Daniel Briesemann suggested that now nothing can stop palladium.
Briesmann explained that even if we consider the sharp price increase to be exaggerated, there is no end in sight for growth.
Briesemann was echoed by Jonathan Butler, Mitsubishi’s precious metals strategist, who did not rule out the possibility of palladium reaching the $ 2020 ounce threshold before the end of the year.
Concerns about electricity supplies in South Africa helped palladium this week, along with still strong physical demand, according to Bloomberg.
The precious metal silver white color has enjoyed a steady rise in value over the past decade , starting with a minimum of only 235 per ounce in November 2008, in contrast to gold, silver and platinum.
Palladium is used in pollution control devices, electronics, jewelry, groundwater treatment equipment, chemical applications and dentistry.
Given the rising price of metal more expensive than gold, alternative-energy vehicles, such as electric cars, could be an option, since during its production palladium is not used.
However, Roman Antonov, an executive at Russian bank Promsviazbank, pointed out that the transition to electric vehicles would take a long time.
“The transition to other types of transport, particularly electric vehicles, which do not use palladium, will take a long time,” said Antonov.