Tuesday, 19 January 2010

How to Invest in Palladium


Like other precious metals, palladium may be used as an investment. Palladium price peaked near US$1,100 per troy ounce in January 2001 (approximately US$1340 in 2009 dollars) driven mainly on speculation of the catalytic converter demand from the automobile industry.
Recent years' palladium surplus condition was caused by the Russian government selling off government stockpiles built up during the Soviet Era, at a pace of about 1.6 to 2 million ounces a year. The amount and status of this stockpile is kept as a state secret.

Exchange-traded funds

ETFS Physical Palladium (LSEPHPD) is backed by allocated palladium bullion and was the world's first palladium ETF. It is listed on the London Stock Exchange as PHPD[1], Xetra Trading System, Euronext and Milan.

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 and the Chinese Panda. The liquidity of direct palladium bullion investment is not as good as gold and silver due to low circulation of palladium coins and wider spread between buying and selling price.