Palladium: About the Precious Metal Palladium

Palladium is a sister to platinum, a "noble metal" (member of the the platinum group of metals) with some rather unique properties that ensure a place for it in industry and as a precious metal investment. This fascinating metal is tied closely with platinum from both history and its properties. Even so, important differences remain in physical properties and in today's supply and demand economics.

One of the platinum group metals, palladium is used extensively as an industrial catalyst and is a key component in the manufacturing of automotive catalytic converters. Palladium is also essential in the jewelry industry...and is one of the three most used metals (along with nickel and silver) which can be alloyed with gold to produce "white gold." It is also used in dentistry, watch making, and in the production of surgical instruments and electrical contacts.

Over half of the world's annual supply of palladium comes from Russia...and the amount and status of Russian palladium supplies are state secrets. In the past, Russia has routinely withheld supplies of palladium from world markets for its own political and/or economic gain, resulting in very large and very fast fluctuations in palladium prices.

It is this historical range of prices, and the price differential between palladium and platinum at any given time, that gives palladium its attractive investment potential. The price of palladium has been, and could again be, extremely volatile, providing investors with a significant opportunity for speculative profit.

Bullion is the form of palladium traded for investment purposes. From palladium metal, palladium coins (or rounds) and bars are made to form a physical product that is bought or sold on the basis of the palladium content. The catch is that only one government makes bullion bars. Only Canada makes palladium bullion coins, and only a select few have issued commemorative palladium coins (which have become collector's items).

Palladium bullion is available from Silver Trading Company in 10-ounce bars of pure .999 fine palladium. Each bar is manufactured by one of the world's leading refiners, and is hallmarked to certify weight and purity.

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