Platinum and palladium to run higher as industrial demand picks up in 2021

(Kitco 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 palladium will 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.