The price of Palladium has soared over the last few days and has hit record highs. Just over the last two weeks, the price has risen by 25%.
In the last year, the price has doubled and now an ounce of palladium costs over £1,900 which makes it more expensive than gold.
Analysts have said that this price could only rise further due to global supply issues and prices still could surge.
The majority of the worlds palladium is sourced from Russia and South Africa, and is extracted as a secondary product in the mining of other precious metals such as platinum and nickel.
The by product is used in catalytic converters, which is vital in the performance of a cars exhaust system that controls emissions.
The majority of palladium sourced is used in these catalytic converters, and turns greenhouse gases into more environmentally by products when a car is operating.
A long term supply deficit has cause the pride of the metal to surge, and rates charged to lease palladium have rocketed over the last few weeks.
Standard Chartered (LON:STAN) analyst Suki Cooper said she expects 700,000 ounce shortfalls this year and in 2021, and for prices to rise.
Notably, forward and lease rates have jumped to around 20% which gives the price of palladium a new peak point.
South Africa, who produce roughly 40% of the worlds palladium said last week that its output of precious minerals including Palladium had fallen 13.5%.
Demand for palladium has only surged following emissions standards in China coming into full effect, which has led to Chinese markets needing 30% more palladium per vehicle.
Notably, the progressions made on the US-China trade deal have also driven prices and this agreement which was reported last week may help to easy up global supply issues and stabilize the price of oil.
Despite firms such as Anglo American PLC (LON:AAL) guiding for palladium at 1.4 million ounces for 2020, there is a clear global supply issue which has made it more expensive than gold.