Palladium as an investment
 |
This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (September 2010) |
 |
This article may require cleanup to meet Wikipedia's quality standards. (Consider using more specific cleanup instructions.) Please help improve this article if you can. The talk page may contain suggestions. (July 2007) |
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. Palladium is traded in the spot market with the code "XPD". When settled in USD, the code is "XPDUSD".
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.
Contents |
[edit] Investment vehicles
[edit] Exchange-traded products
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. ETFS Physical Palladium Shares (NYSE: PALL) is an ETF traded on the New York Stock Exchange.
[edit] 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.[citation needed]
