***** News) - Although gold attracted a lot of attention in 2020, especially after hitting an all-time high in August, investors should have been paying attention to platinum group metals (PGMs), according to some analysts.Like all other assets, the PGM space has been extremely volatile this past year as investors have tried to navigate the massive uncertainty and economic destruction caused by the COVID-19 pandemic. However, looking ahead, many analysts are fairly optimistic that platinum and palladiumwill attract new investor attention due to rising industrial demand as the global economy starts to recover from the effects of the coronavirus.The two metals are primarily used in autocatalytic converters to reduce harmful exhaust emissions. Palladium is used in gasoline-powered engines, and platinum is used in diesel-powered vehicles. Platinum also has a slight advantage over palladium when it comes to physical demand as it also has a small jewelry market.Some analysts expect that as the global economy returns to some normalcy, palladium will resume its sharp uptrend from 2019. Before the pandemic decimated the global economy, palladium prices were rocketing higher, hitting an all-time high above $2,700. The price of the precious industrial metal has been driven by a significant supply and demand imbalance. Demand for palladium has risen sharply over the years as automakers use more of the metal to meet tightening emission standards; meanwhile, supply has dropped sharply.Platinum and palladium saw some renewed interest in November after Democratic candidate Joe Biden solidified his presidential win. Economists and market analysts expect that a Biden administration will lead to tighter environmental regulations and a renewed focus on developing green energy technology.In a report published last month, Jonathan Butler, precious metals analyst at Mitsubishi, said that one of the first acts of the new government will bw to rejoin the Paris Climate Accord. QUOTE
Year ahead looks positive IMO.
https://www.*****.com/news/2020-12-31/Platinum-and-palladium-to-run-higher-as-industrial-demand-picks-up-in-2021.html
