When we look at recent developments in the precious metals group, the above statement can be easily understood, gold has been left behind against the gains of the other three precious metals.

There are many potential reasons for this, but one of the main drivers has been the incredible rally in the US stock market during the ongoing Covid-19 crisis. While it can be said that market participants are extremely bullish, it is a clear fact that market participants, when looking at US stocks, are forward-thinking. In other words, they are looking at what will happen in the future rather than focusing on the current economic scenario.

With optimism and the ability to look to the future and focus on the important technological transitions to come, precious metals widely used in new applications will provide the most significant price gains. treat. The shift from fossil fuels to solar energy is just one example. Silver is a precious metal that is essential in making solar panels. As the world transitions to more solar power, more silver will be needed and prices will benefit from that. Another striking example is the transformation in the auto industry.


Why will the use of platinum and palladium continue to increase rapidly?

Before electric vehicles and hydrogen cells, the only real use of platinum and palladium was in catalytic converters, because their chemistry can remove dangerous byproducts. and toxic from internal combustion engines. Currently, platinum is widely used in the chemical industry because of its properties that it can be a catalyst and bind with nitric acid, silicon, and benzene. However, in the future, one of its main uses could be to improve fuel cell efficiency as well as further use for hard disks.

Platinum is also the heaviest of the precious metals, twice as heavy as gold. This precious metal is also ten times rarer than gold.

Six naturally occurring isotopes allow this precious metal to be mainly used for vehicle emissions control devices, accounting for 45%. To this day, its most common use is as a catalyst to allow the complete combustion of unburnt hydrocarbons from the exhaust gas to carbon dioxide and water vapor.

Another major factor that will support higher valuations in the future is that platinum, unlike gold and silver, cannot be easily isolated in a relatively pure state by simple thermal purification. In other words, it requires a complex refining process.

It is for these reasons that, as mentioned above, the three precious metals silver, palladium and platinum will be needed and instrumental in the future as new applications are developed, such as those used in industry. new battery technology and a key component used in the creation of hydrogen fuel cells. The future of these metals seems extremely bright. Although gold is also used in technology, it seems likely that the chemical properties of platinum and silver will continue to be applied to new technologies and therefore the demand will be greater and greater.

In summary, looking at the future prospects, the trio of precious metals including silver, platinum and palladium will have a huge increase in demand, thereby pulling their value up, while for gold, almost not much has changed in terms of use value, it is still mainly driven by the need to hedge against inflation and uncertainties.