Palladium is a precious metal that is approximately 30 times rarer than gold. It is a naturally white metal that has a luster similar to the better known precious metal platinum. It is strong and durable, lasting a long time without wear. It is resistant to tarnish and intense heat. It is a member of the platinum group metals (PGM), a group which also includes platinum, osmium, rhodium, ruthenium, and iridium. Though palladium should not be confused with platinum, another member of the platinum metals group.
Locations of palladium mines are few, with the largest, most productive mines being in the Bushveld Igneous Complex in the South African Transvaal; the Stillwater Complex in Montana, USA; Sudbury, Ontario, Canada, and the Norilisk Complex in Russia. Palladium is also recycled from scrapped catalytic converters. Over fifty percent of the available supply of Palladium is used in the production of catalytic converters, which convert much of auto exhaust into less dangerous substances. It is also widely found in electrical goods such as computers, televisions, mobile phones, electrical contacts, multi-layer ceramic capacitors, and component plating.
Palladium is also used in jewelry. This began in 1939 when its sister metal platinum was reserved for military use. One benefit of palladium for jewelers was that palladium was lighter than platinum so larger jewelry pieces could still be worn comfortably. And with palladium being a very malleable metal, stone setting was an easy process. But production of palladium jewelry was largely discontinued after World War II when platinum was was once again permitted to be used in the jewelry trade. Its downsides as a jewelry metal were that the color can become dull over time, and that it doesn’t polish as well as platinum.
In addition to the above uses of palladium in commercial goods, it is also used in dentistry and medicine, groundwater treatment, and hydrogen purification. Palladium is also used in fuel cells, which combine hydrogen and oxygen to make electricity, water, and heat. These relatively recent industrial uses have caused palladium’s value to skyrocket in recent years. The price, however, has fallen dramatically since last spring, due to the slowdown in the automotive industry, reducing demand for palladium used in catalytic converters.
Similar to the current situation of silver, palladium’s extensive use in industry coupled with its limited supply make palladium an intriguing investment opportunity. However, the continued instability in the auto industry and the possible prominence of alternative energies in tomorrow’s automobiles, the future of palladium is uncertain. So even though I own a number of rare palladium coins as part of my numismatic collection, I don’t plan to buy any palladium bars or palladium coin bullion for the time being. Short term traders, however, may benefit from the current low prices if an auto industry bailout package causes palladium prices to rise.
Source by Paul Jorgensen
All About Palladium - The Little Known Precious Metal
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