In addition to the mask as a sign of fear and panic, as well as the vaccination, which is not effective but not free of side effects, the supply chain problems will be remembered from the Corona period. They have shown everyone how vulnerable an economic system is that depends on the constant availability of raw materials and primary products.
Currently, the supply chain problems are no longer the dominant topic in the media. That doesn’t mean, however, that this danger has completely disappeared. On the contrary: The delivery bottlenecks of the future are already becoming vaguely visible on the horizon, especially when it comes to precious metals.
For industry on the one hand and private and institutional investors on the other, it is high time to prepare for a time when the so-called white precious metals, i.e. silver, platinum and palladium, will be extremely scarce and therefore will be extremely expensive.
The basis for future price explosions is currently being laid
The silver will be used particularly heavily in the energy sector in the coming years. Here it is used in the components of electric vehicles and photovoltaic systems. It is bound in them for many years, if not decades, and is therefore not available on the market for immediate reuse.
On the one hand, platinum will experience a strong increase in demand from the automotive industry and, on the other hand, will be used as a catalyst metal in fuel cells for the reaction of hydrogen and oxygen. The lower price of platinum compared to palladium and the problem of palladium in Russia speak for an increase in demand on the part of automobile manufacturers.
With palladium, Russia has dominated the world market for years with a share of almost 40 percent of global production. At the same time, production in South Africa, the second largest palladium producer in the world, continues to decline. This double dilemma can not only lead to sharply rising palladium prices, but could also increasingly prompt the automotive industry to replace the more expensive palladium with the cheaper platinum in the autocatalysts.
Strong price increases are therefore to be expected for all three white precious metals solely as a result of the supply and demand situation. Far-sighted investors are already anticipating this development in their investment decisions by positioning themselves in the silver, platinum and palladium sectors.