Palladium Prices: Industry Overview
Part of the platinum family, palladium was only first discovered in 1802 which makes it a relatively new precious metal when compared to the likes of silver and gold. Its shiny, silvery aesthetic have meant that it is used to give white gold its colour, but it is used in several other industries aside from luxury jewellery.
Much like platinum, it is used heavily in the electronics and auto industries, specifically in the production of catalytic convertors, which accounts for approximately 75% of its global demand. South Africa and Russia are responsible for producing approx. 40% of the globe’s palladium supply each, and the rest is mined in places such as Zimbabwe, Canada and the US.
Although palladium does not have the same rich history as silver or gold, demand for the attractive metal is still high, and the expected rise in vehicle production in emerging markets has the potential to give it some staying power.
Much like gold and platinum, palladium is bought and sold via over-the-counter trading (OTC) via a network of dealers, rather than a centralised exchange.
The London Platinum and Palladium Market (LPPM)
The true benchmark when it comes to the cost of palladium comes via the Platinum and Palladium Market (LPPM). Set twice daily at 9:45 and 14:00 UK time in US dollars per .9995 fine ounces, the price of both palladium and platinum are independently administered by the London Metal Exchange (LME),who are a subsidiary of the LBMA.
Palladium coins and bars
Physical palladium is mostly available in the form of coins or bars, and both types must have a millesimal fineness of at least .9995 to be considered pure. Palladium coins tend to be valued higher, due to higher production costs, their appeal to collectors, and the fact they are minted far less frequently than platinum, silver and gold coins.
Popular coins include Canada’s Palladium Maple Leaf and Australia’s Cook Island Palladium coin.
Palladium bullion bars are available as parts of an ounce, multiples of one troy ounce, grams, or kilograms, and again as parts or multiples of these units of weight.
Monitoring Palladium price charts
The StoneX Bullion Platinum and Palladium Price Chart can be used to view the historic price of palladium, with the data available to view in four different timeframes; 1 day, 1 month, 1 year, and back to historic gold price charts
. Prices are available in grams, kilo, or ounces, allowing you to view the price you need in the timeframe of your choice, which allows you to analyse the historic data most relevant to your enquiry.
What can impact the price of Palladium?
Much like silver and gold, palladium is a supply and demand commodity. However, although the value of palladium can fluctuate in-line with the various factors that affect the price of silver and gold (economic trends, technology advancements, inflation etc.),it also has its own unique set of influencers:
South Africa and Russia
As South Africa and Russia account for an approximately even split of around 80% of the world’s palladium resources, any sanctions, economic downturns or miner strikes can significantly affect the price of palladium, both positively and negatively.
Automobile industry
As roughly 75% of palladium demand is accounted for by the auto industry, the global supply and demand for vehicles plays a huge part in shaping the price of palladium. Countries hit by economic downturn will naturally require less new vehicles, and vice-versa. That said, several emerging markets in rapidly-developing countries have seen a rise in vehicle production.
How to invest in palladium
We believe that palladium can help diversify an investment portfolio, adding a new dimension to one that’s built primarily upon stocks and shares. However, we appreciate that it is also a big commitment and not suited to all investors. If you have any questions or would like to explore palladium investment options, then don’t hesitate to get in touch with us here at StoneX Bullion.
