*Palladium is now worth Rs.59000 per 10 gram in India
*Catalytic concertos robbed from cars are then sold Rs15,000 per kg in Mumbai
Owners of petrol cars are being warned that their vehicles are at high risk if parked on the street as catalytic converter thefts surged this year in India. Detectives are investigating a recent spike in catalytic convertor thefts across the country. There has been a huge rise in hybrid car’s catalytic converters being stolen from cars, police in Gujarat say. The theft is the latest in line by an alleged Mumbai and Gujarat gang which conducted dozens of similar thefts.
The prices of certain precious metals have skyrocketed in the last 2/3 months - palladium is now worth $2410 an ounce (31.10347 gram) it’s quoted in India Rs.59000 per 10 gram on Thursday. An average car’s catalytic converter contains about 2 grams of palladium, with some models even using up to 7 grams of the metal. This is what makes it very difficult for the owners of the targeted vehicles to replace the stolen part.
The certain catalytic converter of limousines and other hybrid car weighs only 900 grams said Local crime branch officer- Kiran Chowdhary who cracked the robbery case of a gang who thefts 23 catalytic converter from Anand and adjoining villages in Gujarat. There are metals like palladium, platinum and rhodium which are used in such catalytic converter based on the class and models of such cars.
Such catalytic concertos robbed from such cars are then sold it headquarter in Mumbai for a price of Rs.10,000 per kg to Rs.15,000 per kg. This Mumbai gang use to earlier get this job done from owners of car repair garage. But looking at the soaring prices of these precious metals, a whole new gang is formed to encourage and back the robbery of such catalytic convertors in major cities and states of the country.
A precious metal palladium catalytic converter is located in a box on the exhaust pipe under a car. In order to steal it, thieves slide under the car and use high-powered cutting tools to detach the box from the pipes around it.
The police have advised that vehicle owners consider taking the following safety measures: Mark catalytic converters with a serial number to make it distinctive. Place a protective covering over the catalytic converter. Install CCTV and alarms. Park vehicles so that to prevent access underneath.
Palladium futures began a largely smooth ascent from May. By July, the price had soared to a four-month high of $2,420, returned 21% on the year. By that point, it was already up $1,065, or 79%, from the March trough. Gold’s rally also came with much volatility and fanfare, compared with palladium’s smooth and relatively quiet ascent.
(Disclaimer: This analysis is only for educational purpose and is not and must not be construed as investment advice. It is analysis based purely on economic theory and empirical evidence. Readers are requested to kindly consider their own view first, before taking any position.) Date: 4-9-2020