Contrary to what many people believe, gold is not the most expensive metal on the market, at least not always. In fact, palladium, belonging to the platinum group, exceeded the value of gold in 2002 and again in 2019. But what makes palladium more valuable than gold?
If you are interested in this metal, do not miss this article. We will explain what it is, where it is found, what it is used for and why its value exceeded that of gold, including the most important maximum values that palladium has reached.
What is palladium?
When we speak of palladium we refer to a chemical element whose atomic number is 46. This means that it has a total of 46 protons inside its nucleus and another 46 electrons that are orbiting around it. As the number of protons and electrons is the same, the amount of positive and negative charge is equal, giving rise to an atom with a neutral global electric charge. To find palladium on the periodic table, we must look for the symbol Pd. This chemical element belongs to the platinum group which has a total of six metals with very similar physicochemical properties.
Since ancient times, palladium has been considered a precious metal due to its silver color and its scarcity. But nevertheless, what really gives it its value are its properties rather than its appearance:
- It does not rust when it comes into contact with air.
- It is malleable and soft.
- In the platinum group, it is the least dense metal and whose melting point is lower than the others.
- Can absorb H2 (molecular hydrogen) in huge quantities.
It is precisely because of its power to absorb H2 Palladium is often used in car catalysts, as it is capable of absorbing up to no more and no less than 900 times its own volume.
Where is palladium found in nature?
As we have already mentioned, palladium is a rare element. In nature it is usually found in the form of alloys with other metals belonging to the same group, that of platinum. These include rhodium or ruthenium, platinum itself, and also alloyed with gold. Nevertheless, the main problem is that it is necessary to process huge amounts of minerals in order to obtain even a small amount of palladium. This difficulty in obtaining it further increases its value.
As for the most abundant deposits, these are found in the Ural Mountains. For this reason it is not surprising that Russia produces about 50% of all palladium on the world market. The remaining 50% is distributed in mines in other countries: Australia, Canada, the United States, Ethiopia and South Africa.
There is also another way to obtain palladium from nuclear fuel waste. This requires the use of nuclear fission reactors. Nevertheless, this process involves a very high level of radiation, so it is not used.
What is the use of palladium?
Palladium has several important applications of which its role in the automotive world stands out. Car manufacturers coat the ceramic mesh of catalysts with this metal. These catalytic converters are found in both diesel and gasoline cars. Thanks to palladium and the other metals belonging to the platinum group, cars expel less toxic pollutants, as they convert them into carbon dioxide and water vapor.
Palladium is also a highly valued metal in consumer electronics due to its versatility. These are its applications in this sector:
- Alloy with silver: It is involved in the composition of the electrodes of the capacitors found in many of the electrical devices that we use on a daily basis, such as the motherboards of televisions, computers and sound equipment.
- Nickel Alloy: It is used as a coating for those areas where electrical components come into contact.
In addition, palladium is used on welding panels, especially those used in jewelry for its durability and robustness. Other applications that this element has is as an alternative to white gold and plant, in photography to facilitate the development of films and in the field of electrochemistry thanks to its incredible ability to absorb hydrogen in large quantities.
Cold fusion
Interestingly, many scientists have turned to palladium in order to show that there is a possibility of creating cold fusion. But what is this? It is a technique whose objective is recreate a source from which to obtain energy in large quantities through the fusion of atomic nuclei under conditions of pressure and temperature similar to the ordinary environment. Currently, the nuclear fusion reactors that scientists are experimenting with require the plasma used to reach a temperature of about 200 million degrees. It is the only way to get a huge amount of energy released.
Obviously it is quite a challenge to handle plasma with that temperature, not to mention all the energy that must be invested to heat it so much. This is precisely what scientists want to avoid with cold fusion. The role of palladium in this technique is fundamental because its ability to absorb so much hydrogen at room temperature can cause, under appropriate conditions, a nuclear interaction strong enough to release energy, theoretically.
Although there were cases in which some scientists claimed to have managed to recreate cold fusion, using palladium, these experiments could not be recreated by other research teams. This aspect is essential for them to be considered valid. However, research is still ongoing and perhaps some success will be achieved in the next few years.
Gold vs. Palladium: What is more expensive?
Now that we already know that palladium is in the hands of few countries, that it is scarce, what it is for and that its processing is quite expensive, it is not difficult to understand why it is such an expensive metal. In the end, the supply is scarce while the demand is high, and that translates into the market with a high price.
It was at the beginning of January 2019 that palladium managed to surpass gold in price. This has not happened since 2002, so it is quite surprising. But why has it outperformed gold? It is very simple: The world is increasingly focused on reducing pollution levels, especially from cars.
Palladium is a fundamental metal for this task. Automakers account for no more and no less than 80% of palladium consumption. Due to the measures taken by many governments, especially that of China, regulations on pollution from vehicles have been tightened. Thus, automakers are forced to use more palladium in the production of cars. It is estimated that about 85% of this metal is destined for automobile exhaust systems. There, the role of palladium is to help convert toxic pollutants into less harmful water vapor and carbon dioxide.
Palladium evolution
When palladium started to skyrocket and overtake gold in 2019, it doubled in value in just a matter of months. At the beginning of the year, in January 2019, the market price of this metal reached a maximum of 1389,25 US dollars. A year later, in February 2020, its value doubled, reaching a maximum of $ 2884,04. As we have already mentioned, this brutal rise coincided, or rather, was the consequence of the governments' decision to tighten the regulation of pollution caused by automobiles.
The following months the price dropped a bit, but it still marked another high point when it was worth US $ 3014,13 very recently, in April 2021. As of today, we are in August of this same year. , its value is around 2600 to 2700 dollars, beating gold by a thousand dollars, whose oscillations in recent months have been considerably milder in comparison. While the average of the last two years for palladium corresponds to $ 2067,87, that of gold is $ 1669,02, a considerable difference.
But is it a good idea to invest in palladium? Who knows. It may be a good idea considering the great demand for this material and its scarce and difficult to obtain. These characteristics will not change in the near future. However, it has already reached a very high price, so we may have missed this train. In the end, it is impossible to predict what will happen with complete certainty. Now that we understand better the value of palladium, it will be easier for us to decide if we want to invest in this matter or if we better let it be.