Palladium is used extensively as an industrial catalyst and is a key component in the manufacturing of automotive catalytic converters. Palladium is also essential in the jewelry industry...and is one of the three most used metals (along with nickel and silver) which can be alloyed with gold to produce "white gold." It is also used in dentistry, watch making, and in the production of surgical instruments and electrical contacts.
In the autocatalyst industry, palladium is currently a lower-cost substitute for the more expensive alternative, platinum. As this is written, palladium sells for around one-quarter the price of platinum. But that has not always been the case. In late 2000 and early 2001, for example, due to supply disruptions and a resulting panic by auto manufacturers (most notably, Ford Motor Co.), the price of palladium reached an all-time high of nearly $1,100 an ounce, approximately the same price as platinum at the time.
Over half of the world's annual supply of palladium comes from Russia...and the amount and status of Russian palladium supplies are state secrets. In the past, Russia has routinely withheld supplies of palladium from world markets for its own political and/or economic gain, resulting in very large and very fast fluctuations in palladium prices.
It is this historical range of prices, and the price differential between palladium and platinum at any given time, that gives palladium its attractive investment potential. The price of palladium has been, and could again be, extremely volatile, providing investors with a significant opportunity for speculative profit.
Palladium bullion is available from Monex in 10-ounce bars of pure .999 fine palladium. Each bar is manufactured by one of the world's leading refiners, and is hallmarked to certify weight and purity.
Call a Monex Account Representative today to discuss whether a palladium bullion investment is right for you and how you could add palladium to your investment portfolio.
Monex Account Representatives are normally available between 5:30am and 5:30pm Pacific time each Monday through Friday (except national holidays)...and on many weekends.
Give us a call...give our service a try...and compare our prices. You'll see why Monex has been America's trusted name in coin and bullion trading...for over 40 years.
Review platinum and palladium commodities market in 2011, platinum and palladium prices suffered a major downwards correction in early October 2011, reaching lows for the year, as faltering confidence in prospects for economic growth in Europe led to a flight from risk assets. Prices recovered well in the middle part of the month and saw some further appreciation by the end of the month as a solution to the eurozone crisis seemed closer.
Platinum largely tracked the gold price again this month, maintaining its discount in both upwards and downwards movements. PLATINUM Platinum’s price slumped in early October, losing $78 to fix at a low for the month of $1,442 on the 5th, the lowest since December 2009. Even at this price, platinum found little buying interest in China due to the National Day holiday. Platinum gained some ground over the following days as risk appetite appeared to return following an announcement that the EU would recapitalise Europe’s vulnerable banks.
Platinum markets remained nervous over Europe’s growth prospects after a downgrade of Spain’s debt and a dispute over raising the EU bailout fund. With investor sentiment remaining negative regarding prospects for industrial demand, platinum’s price was subdued mid-month. As many industrial customers had bought into recent price dips, there was also low physical demand.
Platinum price rallied briefly on the 17th but then retreated as the market absorbed news of disappointing economic growth from China and the USA. After dipping beneath $1,500 once again, platinum rallied again in the week of the 24th, eventually reaching a month high of $1,645 on the 28th on the back of optimism over the proposed EU deal to manage the sovereign debt crisis. A rallying gold price also gave some support to platinum. On the supply side, reports of falling quarterly output from Aquarius and Zimplats appeared to have little effect on the price. Platinum ended the month at $1,606, up $86 in the month.
Platinum futures positions declined by almost 200,000 oz in the month to 25th October with the heaviest liquidation in early October. Platinum ETF positions declined by around 42,000 oz to the 27th October with selling in the London, US and Source funds but increases in the Swiss funds. PALLADIUM Palladium dropped below $600 for the first time since October 2010, fixing at a low for the month of $561 on the 5th. This represented the low point in the ‘washout’ that had begun in September and seen the price lose over $200.
Reports out of Russia that the last 9 tonnes of palladium from state stockpiles of palladium will be shipped in 2012 and 2013 gave some support to the price, although perception of future supply shortfalls appear to have largely been priced in by the market. Palladium regained the $600 level, peaking at $642 on the 17th. The price subsequently fell back below $600 with flagging investor confidence related to wider economic concerns. Like platinum, palladium benefitted from more positive sentiment regarding the eurozone as the new bail-out plan was revealed. Together with news from Norilsk Nickel of a fall in year-on-year palladium production in the 9 months to September, palladium was given some upwards momentum and reached a month-high of $667 on the 28th. The price then fell back to end the month at $651, up $47 in the month.
Platinum largely tracked the gold price again this month, maintaining its discount in both upwards and downwards movements. PLATINUM Platinum’s price slumped in early October, losing $78 to fix at a low for the month of $1,442 on the 5th, the lowest since December 2009. Even at this price, platinum found little buying interest in China due to the National Day holiday. Platinum gained some ground over the following days as risk appetite appeared to return following an announcement that the EU would recapitalise Europe’s vulnerable banks.
Platinum markets remained nervous over Europe’s growth prospects after a downgrade of Spain’s debt and a dispute over raising the EU bailout fund. With investor sentiment remaining negative regarding prospects for industrial demand, platinum’s price was subdued mid-month. As many industrial customers had bought into recent price dips, there was also low physical demand.
Platinum price rallied briefly on the 17th but then retreated as the market absorbed news of disappointing economic growth from China and the USA. After dipping beneath $1,500 once again, platinum rallied again in the week of the 24th, eventually reaching a month high of $1,645 on the 28th on the back of optimism over the proposed EU deal to manage the sovereign debt crisis. A rallying gold price also gave some support to platinum. On the supply side, reports of falling quarterly output from Aquarius and Zimplats appeared to have little effect on the price. Platinum ended the month at $1,606, up $86 in the month.
Platinum futures positions declined by almost 200,000 oz in the month to 25th October with the heaviest liquidation in early October. Platinum ETF positions declined by around 42,000 oz to the 27th October with selling in the London, US and Source funds but increases in the Swiss funds. PALLADIUM Palladium dropped below $600 for the first time since October 2010, fixing at a low for the month of $561 on the 5th. This represented the low point in the ‘washout’ that had begun in September and seen the price lose over $200.
Reports out of Russia that the last 9 tonnes of palladium from state stockpiles of palladium will be shipped in 2012 and 2013 gave some support to the price, although perception of future supply shortfalls appear to have largely been priced in by the market. Palladium regained the $600 level, peaking at $642 on the 17th. The price subsequently fell back below $600 with flagging investor confidence related to wider economic concerns. Like platinum, palladium benefitted from more positive sentiment regarding the eurozone as the new bail-out plan was revealed. Together with news from Norilsk Nickel of a fall in year-on-year palladium production in the 9 months to September, palladium was given some upwards momentum and reached a month-high of $667 on the 28th. The price then fell back to end the month at $651, up $47 in the month.
MMC Norilsk Nickel the world's largest palladium producer in Russia, will sharply cut sales from its stockpile in the next two years before ending them altogether in 2014, a company executive said Thursday.
The stockpile has supplied about 15 percent of global demand for palladium, which is used in vehicle catalytic converters, for the last 40 years.
Anton Berlin, Norilsk Nickel's marketing director, told participants at the ETF Securities Annual Precious Metals Conference 2011 that palladium sales this year from the company's stockpile will be about 850,000 ounces.
The palladium, during 2012 and 2013 the publicly held company, which is also the world's biggest nickel producer, will sell a total of some 300,000 ounces of palladium, after which its stockpile will be depleted, he said.
This year Norilsk Nickel expects to produce 2.7 million ounces of palladium, about 2.8 percent less than it produced in 2010.
News of the palladium stockpile's depletion was disclosed inside Russia recently to media outlet Russian Business Consulting, which cited an anonymous Ministry of Finance official, Berlin said.
Palladium for March delivery, the most actively traded contract on the Comex, closed up nearly 2.9 percent to $630.20. Since Nov. 9 the metal's value on the Comex has fallen about 3.8 percent.
The stockpile has supplied about 15 percent of global demand for palladium, which is used in vehicle catalytic converters, for the last 40 years.
Anton Berlin, Norilsk Nickel's marketing director, told participants at the ETF Securities Annual Precious Metals Conference 2011 that palladium sales this year from the company's stockpile will be about 850,000 ounces.
The palladium, during 2012 and 2013 the publicly held company, which is also the world's biggest nickel producer, will sell a total of some 300,000 ounces of palladium, after which its stockpile will be depleted, he said.
This year Norilsk Nickel expects to produce 2.7 million ounces of palladium, about 2.8 percent less than it produced in 2010.
News of the palladium stockpile's depletion was disclosed inside Russia recently to media outlet Russian Business Consulting, which cited an anonymous Ministry of Finance official, Berlin said.
Palladium for March delivery, the most actively traded contract on the Comex, closed up nearly 2.9 percent to $630.20. Since Nov. 9 the metal's value on the Comex has fallen about 3.8 percent.
