Why $1400 Is The Level To Watch For Palladium

The automobile industry is going through radical changes. As the world’s climate continues to change, more people and government are moving to electric vehicles. In fact, a number of countries in Europe and Asia have announced that they will ban combustion-engine vehicles in the next few years. As such, new companies like Tesla are coming up with the goal of developing electric vehicles. Others in this industry are Rivian and Nio. At the same time, the traditional vehicle companies like Ford, General Motors, and BMW are boosting their production of electric vehicles.

Another major change in the industry is the rise of ride-sharing companies. Uber and Didi are the two biggest companies in this industry. Uber dominates the United States, European, and in some Asian countries. Didi, on the other hand, dominates the Chinese and South American industry. Lyft is the second-biggest company in the industry in the US. Recently, it went public and is currently valued at more than $20 billion. Uber is expected to go public this quarter and will be valued at more than $100 billion.

Another change in the industry has been on emission standards. These standards arose after the scandal that rocked Volkswagen, the largest automaker in the world. The company was accused of cheating by the United States and was forced to pay billions of dollars in fines. This scandal led to the EU regulators and those from China to put more stringent standards. This has led to a slowdown in auto sales in the two regions.

The next change in the industry is that the global economy has seen a peak of the car market. This is because the current policies of low-interest rates have led to an increase in purchases by people in Europe, the United States, and Asia. However, the market is now thinking about higher interest rates, which will lead to a decline in the number of auto sales. In fact, all the leading auto manufacturers have announced that their unit sales have reduced.

A key metal that has been affected in all this is palladium. The precious metal is found in most diesel vehicles to act as a catalytic converter. This converter helps in the reduction of emissions. The increase in demand for vehicles and the stricter conditions have led the metal to gain significantly. This year, the price reached a high of $1600. This makes it the most expensive precious metal in the world.

1 2
View single page >> |

Disclaimer: The information found on forex.info are intended only to be educational, is not advice nor a recommendation and thus should not be treated as such. We strongly recommend that you ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.