William Hyde Wollaston discovered palladium in 1803 and named it after the asteroid Pallas – which shortly before was discovered and named after the Greek goddess Pallas Athena. The silver-white shiny palladium counts to the four noble metals and is a metal of the platinum group. It is slightly harder than platinum. Palladium can soak up hydrogen up to 850 times of its own volume at room temperature. Palladium is a very old element but exists slightly more often than gold or platinum. Palladium is often denoted as the cheaper platinum because both noble metals show some similarities regarding their chemical characteristics.
Palladium is the other major metal of the platinum group. It is mined with platinum, and resembles it in many respects, yet there are important differences between the two metals. Palladium is also produced as a by-product of nickel mining. Russia supplies about 67% of production, South Africa, 23%; and North America, 8%. Annual production runs approximately 8.1 million ounces.
Palladium arises above all as by-product at the mining of other metals, as such in South Africa at the platinum mining and in Russia and Canada at the mining of nickel. Therefore the extraction of palladium continues even with existing oversupply and low prices.
The most important producers of the worldwide supply of yearly 220 tons are Russia (with a share of 46 %), South Africa (36 %) and the U.S.A. (8 %).
Automotive catalysts are the largest consuming sector, accounting for 57% of demand, electronic equipments account for 21%, dental alloys, 12%. In the jewelry industry (4%) palladium is used for the manufacture of white gold. The alloy is popularly used in Asia where it is processed into rings and other jewelries. Another sector where palladium finds usage is the chemical sector (6 %). The consequences of the latest financial crisis for palladium are not as strong compared to platinum. The demand increased by 0.5 tons to 213.1 tons even during economic lull. The need for palladium in use for automotive catalysts was declining in the U.S.A. But it was compensated by a strong demand from Europe, China and the rest of the world. Increments in the demand were also recorded in the jewelry industry mainly for use as investment, which insofar is remarkable because palladium is the noble metal that you usually do not use for investment’s first choice. The demand for palladium might increase additionally because it can be used at temperatures up to 950°C compared to platinum’s 650°C limit. Palladium is used as electrodes-material in fuel cells and shall also serve as storage-material in the future hydrogen cars.
The jewelry industry has ordered more palladium in 2008. It’s demand increased by 19.6% to 26.6 tons. In the U.S.A. and in Europe were 3.3 tons of palladium more ordered than in the year before. That shows that palladium jewelry is gaining popularity on these continents, but it is still far behind in a direct comparison to China. There, the palladium-consumption increased from 15.5 tons in 2007 to 20.2 tons in 2008. One reason for this was that the supplies of old 950 palladium – which can be used again – slowly but surly end.
Palladium futures are traded at the COMEX Division of the New York Mercantile Exchange. Trading in palladium futures provides individual investors with an easy and convenient way to profit from changes in palladium prices. In addition, a broad cross-section of companies – from palladium mining operations to end-users – can use palladium futures to protect themselves against adverse price changes.
Most important stock exchange centers: NYMEX Comex Division (recently rebranded CME Globex, after a merger between Chicago Mercantile Exchange and NYMEX), LPPM (London Platinum and Palladium Market), Tokyo Commodity Exchange.
Price quotation: U.S. Dollars and Cents per troy ounce (oz.)
Contract-cycles: Trading is conducted over 15 months, beginning with the current month and the next two consecutive months before moving into the quarterly cycle of March, June, September, and December.
Contract-size: 100 oz.
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