Palladium bubble risk

THE chief executive of London-listed mining giant Anglo-American has said a boom in the price of palladium is a ‘bubble’ which is not at any risk of popping.

It is mainly used in catalytic converters, to filter out toxic gas and pollutants in car exhaust fumes, and is also used in jewellery and dental fillings. This time last year it was worth less than $1,000 an ounce but is now at a record high of around $1,550 an ounce.

Anglo-American boss Mark Cutifani said: ‘It is a bubble. Palladium will stick around these sorts of levels for a while.

‘But over time it will change and platinum will come roaring back [replacing it for use in the car industry].’