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Commodity Insights
Palladium Palladium also has more
industrial uses, such as its use
in hydrogen isotope storage
and in groundwater treatment.
Introduction Palladium is also different to gold in terms of investment, in that prices of
Palladium is a type of precious metal. It was discovered relatively recently gold usually rise when the economy is in a slump. Palladium price charts will
in human history, in 1803, and is silver/white in color. Palladium is similar show that the opposite is true of the palladium price however; it decreases
in many respects to platinum, with which it shares several of its most useful when the economy is down. Palladium trading is therefore a potentially
qualities. It is an extremely resilient metal, being resistant to damage from lucrative source of income for the attentive speculator on the commodity
heat or exposure to other chemicals, and is also difficult to tarnish. It is also market. Palladium has a wide variety of uses, and this is reflected in the
extremely ductile and so can be easily shaped and worked. One of its more number of consumer and business markets in which it appears. Palladium
unique qualities is its ability to absorb large amounts of hydrogen, up to 900 enjoys status as luxury material used in the construction of jewelry, in much
times its own volume. Palladium is considered to be a chemically stable the same way as platinum. It is also favored for use in many electronic
metal. applications, where it provides components for computers, mobile phones
Palladium has several special features as a commodity. One of the most salient and televisions. Palladium also has more industrial uses, such as its use in
features to note for traders in futures contracts is that palladium, despite its hydrogen isotope storage and in groundwater treatment. The manufacture of
status as one of the main internationally traded precious metal commodities, fuel cells is another industrial application which is reliant on palladium’s
has not seen such a significant rise in price as other precious metals like ability to store hydrogen.
gold or silver. This does not reflect on the quality or usefulness of palladium In terms of production, Russia is believed to be the most prolific producer of
as a material however, as it is estimated that one out of every four goods palladium, providing around 70% of the world’s supply. South Africa makes
manufactured today will contain at least one component made from either up most of the remaining percentage; partly owing to the fact that palladium is
palladium or platinum, owing to their admirable qualities as materials, as
described above. This means that the market for palladium is large while the
palladium price per ounce is currently comparatively low, which an enticing
combination for those involved in commodity is trading.
59 | MEX NEPAL YEAR BOOK 2017
