Which precious metal should I buy now for investment?
Following the record rise in gold prices in 2025 (up 54% since the beginning of the year), many are talking about other precious metals that will follow suit.
In fact, that's exactly what happened: silver has risen from $30 to $50 since the beginning of the year (67%), platinum has risen from $1,000 to $1,600 (60%), and palladium from $1,070 to $1,600 (50%).
At first glance, it seems that all precious metals have risen in price at roughly the same rate, but this is only if you do not take into account the hidden price potential.
Gold, silver, and platinum all reached their all-time highs in 2025, but palladium, currently trading around $1,600, is still far from its all-time high of $3,000 per troy ounce.
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Based on this, it is obvious that palladium is currently the most promising metal for investment, but are there any preconditions for its growth?
Why might palladium rise?
To answer the question of whether palladium is poised for growth, we need to look at what drives its price. Industrial demand is at the core.
1) Automotive catalysts are the main driver
Approximately 70–80% of palladium demand is for catalytic converters in gasoline engines. This metal is critical for reducing exhaust emissions, which is why its price has risen sharply until 2022.
Supply shortage . The largest producers are Russia and South Africa. Any geopolitical risks, strikes, floods, mine maintenance, or logistical disruptions quickly create a shortage and push prices up. Analysts expect the palladium market to fall into deficit again in 2026 (while 2025 is closer to balance), which is a fundamental prerequisite for growth.
Hybrids and Internal Combustion Engines . Despite the advancement of electric vehicles (BEVs), sales of hybrids and cars with conventional internal combustion engines remain high, especially in areas where BEV subsidies are being reduced. Catalytic converters are needed for both. If the phase-out of internal combustion engines proceeds more slowly than expected, palladium demand will stabilize or increase.
2) "Hidden Potential": Platinum as a Substitute
When palladium is too expensive, automakers substitute it with platinum (Pt) . Currently, with palladium trading at around $1,600 and platinum at a comparable price, the incentive to substitute is weaker. This reduces demand "leakage" toward platinum and leaves more room for palladium to grow.
3) Industry and technology
Besides the automotive industry, palladium is in demand in electronics (capacitors, contacts), chemicals (catalysts, including for acetic acid), and medicine/dentistry. These segments are smaller than the automotive industry, but they provide a stable demand base.
Forecast: Is Palladium Worth Investing in?
Yes, palladium looks like the most interesting precious metal for 2026 in terms of growth potential, if an upside is what's needed:
A large gap to the historical maximum (from ~$1600 to the ~$3300 zone) is a key argument for growth.
Fundamental factors (expected shortages in 2026 and strong demand from internal combustion engines/hybrids) support the price, albeit without the crazy surges seen before 2022.
Reducing substitution pressure: price parity with platinum reduces the incentive to exchange Pd for Pt.
The main risk, however, is that if the share of fully electric vehicles begins to grow faster than expected, the need for palladium in catalysts will decrease.
Conclusion: If you're looking for the greatest upside potential among precious metals, palladium is the most obvious candidate right now: it's not overheated like gold and silver and has more upside room. While it's a higher-risk bet than conservative gold, the potential return is also higher. A moderate portfolio allocation and disciplined position management are optimal.
