FXCM Insights

XPD – Palladium

Palladium is a chemical element discovered in 1803. A similar element in constitution to platinum, palladium is one of the rarest metals, and mostly used for industrial and electronic purposes, mainly in catalytic converters in automobiles, which limit the harm of exhaust gases. Palladium is mined in Russia, South Africa, Canada and the United States, and is often exchange traded due its practical use and rarity. Palladium has an atomic number of 46 and market code of XPD.

In this article:
XPD/USD Chart | Production | Palladium Price


Production of Palladium

Nearly half of the world’s palladium comes from Russia, some 200,000 ounces per year.1)http://www.investopedia.com/articles/fundamental-analysis/12/a-primer-on-palladium.asp Retrieved 12 March 2015. Because palladium plays a significant role in the auto industry, concerns over decreased exports contribute to volatility in the precious metals market. As of 2012, the auto industry claims some 3 million ounces per year of palladium.2)http://www.futuresmag.com/2013/05/02/are-palladium-stockpiles-running-out Retrieved 12 March 2015.
Palladium is mostly recovered in:

Russia and South Africa produce 80% of the world’s supply of palladium.3)http://www.futuresmag.com/2013/05/02/are-palladium-stockpiles-running-out Retrieved 12 March 2015. Palladium is also recycled; a catalytic converter uses roughly 1/20 an ounce of palladium.

Price of Palladium

The price of palladium is often volatile. With a booming auto industry in China and Russia’s stockpile a state secret, palladium pricing can quickly shift. Palladium pushed to a high in January 2007, at $1,100 per ounce.4)http://www.infomine.com/investment/metal-prices/palladium/all/ Retrieved 12 March 2015.

As an investment, palladium can be purchased in physical forms (bars, coins), through futures (via NYMEX) and through ETFs.

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