Palladium (XPDUSD)


Palladium is a metal mainly used in catalysts which assist in protecting the environment from harmful gases. Palladium is one of the rarest metals on earth, with Russia, South Africa and North America being the main producers. The first two countries produce nearly 80% of the total supply, hence any changes on the mining production of these countries adds volatility to the palladium price. Futures and options are a significant part of a group of elements referred to as the platinum group metals (PGMs).

Palladium has several special properties as a commodity. One of the most interesting aspects for traders in futures contracts is that palladium, despite its status as one of the main internationally traded precious metal commodities, has not seen a significant rise in price, as opposed to other precious metals like gold or silver.

The market for palladium is large while the palladium price per ounce is currently comparatively low, which is an enticing combination for those involved in commodity trading. Palladium is also different to gold in terms of investment, in that prices of gold usually rise when the economy is in a slump. Palladium price charts will show that the opposite is true of the palladium price – it decreases when the economy is down.

More than 80% of all palladium in the world is mined in South Africa and Russia.