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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 (
LSE:
PHPD) 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.
