Chemistry:Palladium as an investment

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An ounce bar of palladium bullion
Palladium price 1911–2011
Palladium price 1977–2012

Palladium as an investment is much like investments in other precious metals.

Global palladium sales were 8.84 million ounces in 2017 [1] of which 86% was used in the manufacturing of automotive catalytic converters, followed by industrial, jewelry, and investment usages.[2] Palladium is a chemical element first discovered in 1803, and since the 1980s, its major commercial application has been in the automotive industry.[3] More than 75% of global platinum and 40% of palladium are mined in South Africa . Russia's mining company, Norilsk Nickel, produces another 44% of palladium, with US and Canada-based mines producing most of the rest.[4]

The price for palladium reached an all time high of $1,603.00 per ounce on September 16th 2019[5][6] driven mainly on speculation of the catalytic converter demand from the automobile industry. Palladium is traded in the spot market with the code "XPD". When settled in USD, the code is "XPDUSD". A later surplus of the metal was caused by the Russian government selling stockpiles from the Soviet Era, at a rate of about 1.6 to 2 million ounces a year. The amount and status of this stockpile are a state secret.

Investment vehicles

Palladium producers

  • Norilsk Nickel (Template:MICEX-RTS, LSE: [Script error: No such module "Stock tickers/LSE". MNOD]), palladium powder and ingots.
  • North American Palladium (NYSE: PAL), Canada's largest producer of palladium operating the Lac des Iles palladium mine near Thunder Bay, Ontario.
  • Stillwater Mining (NYSE: SWC), a major North American palladium miner in Montana.[3]

Exchange-traded products

WisdomTree Physical Palladium (Template:Lse2) is backed by allocated palladium bullion and was the world's first palladium ETF. It is listed on the London Stock Exchange as PHPD,[7] Xetra Trading System, Euronext and Milan. ETFS Physical Palladium Shares (NYSE: PALL) is an ETF traded on the New York Stock Exchange.

Bullion coins and bars

A traditional way of investing in palladium is buying bullion coins and bars made of palladium. Available palladium coins include the Canadian Maple Leaf, the Chinese Panda, and the American Palladium Eagle. The liquidity of direct palladium bullion investment is poorer than that of gold and silver because there is low circulation of palladium coins and a wider spread between buying and selling price.[citation needed]

See also

References

  1. ↑ "Total palladium supply worldwide 2017 | Statistic" (in en). https://www.statista.com/statistics/418218/global-palladium-supply/. 
  2. ↑ "Global palladium demand distribution by application 2016 | Statistic" (in en). https://www.statista.com/statistics/254543/global-palladium-demand-by-sector/. 
  3. ↑ 3.0 3.1 "How to Invest in Palladium". elementinvesting.com. http://www.elementinvesting.com/investing_in_lithium.htm. Retrieved 2015-04-28. 
  4. ↑ Louth, Nick (16 December 2011). "How to trade platinum and palladium". iii.co.uk. http://www.iii.co.uk/articles/22030/how-trade-platinum-and-palladium. Retrieved 2015-03-25. 
  5. ↑ "Error: no |title= specified when using {{Cite web}}". https://www.kitco.com/charts/historicalpalladium.html. 
  6. ↑ "CPI Inflation Calculator". https://data.bls.gov/cgi-bin/cpicalc.pl?cost1=1100&year1=200101&year2=201807. 
  7. ↑ "ETFS METAL PAL ETP price (PHPD)". London Stock Exchange. http://www.londonstockexchange.com/exchange/prices-and-news/stocks/summary/company-summary.html?fourWayKey=JE00B1VS3002JEUSDETCS. 




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