Topic: Palladium edges to new record as Russia adds to supply squeeze (Read 296 times)
I am shocked by this statistics
1600 dollars? I'm shocked
Parts from Wikipedia article on Platinum group:
"The six platinum-group metals are ruthenium, rhodium, palladium, osmium, iridium, and platinum. They have similar physical and chemical properties, and tend to occur together in the same mineral deposits."
"As of 1996, the largest applications of platinum metals were, in thousands of troy ounces/year: Pd for autocatalysts (4470), Pt for jewelry (2370), Pd for electronics (2070), Pt for autocatalysts (1830), Pd for dental (1230), Rh for autocatalysts (490), and Pd for chemical reagents (230)."
Palladium is not the only precious metal used for autocatalysts; I would guesstimate that part of palladium dominance in usage for catalysts was due to lower price compared to other platinum-group metals...
"The six platinum-group metals are ruthenium, rhodium, palladium, osmium, iridium, and platinum. They have similar physical and chemical properties, and tend to occur together in the same mineral deposits."
"As of 1996, the largest applications of platinum metals were, in thousands of troy ounces/year: Pd for autocatalysts (4470), Pt for jewelry (2370), Pd for electronics (2070), Pt for autocatalysts (1830), Pd for dental (1230), Rh for autocatalysts (490), and Pd for chemical reagents (230)."
Palladium is not the only precious metal used for autocatalysts; I would guesstimate that part of palladium dominance in usage for catalysts was due to lower price compared to other platinum-group metals...
The palladium reached a record value of $ 1,600. The price has risen after the ban on exports from Russia. The palladium has reached the highest price ever, exceeding the $ 1,600 threshold per ounce for the first time after news that Russia is planning to ban the export of this precious metal, which has raised concerns over the market already limited by supply. On top of this Russia and South Africa together produce about three quarters of the world's reserves.
The Russian Ministry of Trade and Industry announced last week that the proposed ban on the export of precious metal parts will last from May 1 to October 31. Russia is the main producer of palladium, which is mainly used in catalysts.
Prices have almost doubled from the lowest levels and have already risen by about 27 percent since the beginning of this year. It is expected that the automotive industry, the leading consumer of this metal, will have the biggest impact on further price increases. The demand for this metal has risen sharply after a diesel engine scandal that shook the world in 2015, since from that moment the sale of cars with petrol engines has risen drastically.
Palladium is traditionally used in catalytic converters whose purpose is to control the emission of exhaust gases by transforming toxic gases and pollutants into less toxic and polluting. Nearly 70 percent of the demand for palladium comes from world carmakers.
The Russian Ministry of Trade and Industry announced last week that the proposed ban on the export of precious metal parts will last from May 1 to October 31. Russia is the main producer of palladium, which is mainly used in catalysts.
Prices have almost doubled from the lowest levels and have already risen by about 27 percent since the beginning of this year. It is expected that the automotive industry, the leading consumer of this metal, will have the biggest impact on further price increases. The demand for this metal has risen sharply after a diesel engine scandal that shook the world in 2015, since from that moment the sale of cars with petrol engines has risen drastically.
Palladium is traditionally used in catalytic converters whose purpose is to control the emission of exhaust gases by transforming toxic gases and pollutants into less toxic and polluting. Nearly 70 percent of the demand for palladium comes from world carmakers.
So, switching to electric cars means Russia goes bankrupt? Fun stuff.. But given their culture (which is like ours) of hyper-corruption, i don't think that Palladium will have trouble crossing the borders...
But if someone was holding Palladium, this could be a good time to sell, just saying...
Also thought of that. Russia plan to only ban it for a few months. Though they might do it occasionally to cause spikes, maybe even tell certain "buyers" about it, who would then remit the profits to government.
Interesting point of view, or should I say this may be true completely. Russian is making some serious moves in all aspect where they have major export, same was with gas pipe line then suddenly change route. Dont understand politic at all but seem like they are making lot of moves on current political situation in the world. Only this can be trojan horse if they dont play well or ended up opposite the think they desire.
It can happen with any resource with a limited supply if the government is willing to do it. I can totally imagine China doing it with rare earths. Either you suck it and buy or you find another supplier (which likely would have also raised prices).
Or you invade, which isn't an option against Russia or China.
Also thought of that. Russia plan to only ban it for a few months. Though they might do it occasionally to cause spikes, maybe even tell certain "buyers" about it, who would then remit the profits to government.
Interesting point of view, or should I say this may be true completely. Russian is making some serious moves in all aspect where they have major export, same was with gas pipe line then suddenly change route. Dont understand politic at all but seem like they are making lot of moves on current political situation in the world. Only this can be trojan horse if they dont play well or ended up opposite the think they desire.
Also thought of that. Russia plan to only ban it for a few months. Though they might do it occasionally to cause spikes, maybe even tell certain "buyers" about it, who would then remit the profits to government.
Russia is making smart moves, this is wise on their front. Their country has a lot of oil and they do make a lot of profit from it but since USA had some issues with it and managed to work with Saudis to drop the price of Oil to a pulp and than make it so that Russians have to sell oil for very cheap it almost broke their own economy. I remember their money becoming worth half of what it used to in just couple of days after that happened.
If you screw with a countries economy than it will have consequences as you might expect, if you do this kind of stuff to them than they will do the same to you, Russia making palladium ban so it goes up and flexing the world on how much they need Russia's palladium is a way of saying "you let me be and I will let you be" from them. Even though I do not like the way they run the country, you gotta admit its totally deserved move.
If you screw with a countries economy than it will have consequences as you might expect, if you do this kind of stuff to them than they will do the same to you, Russia making palladium ban so it goes up and flexing the world on how much they need Russia's palladium is a way of saying "you let me be and I will let you be" from them. Even though I do not like the way they run the country, you gotta admit its totally deserved move.
When oil price goes up, every single citizen gets affected, because Oil price is directly linked with almost everything! Doesn't matter if you own a car or not! If Oil price goes up, every single commodity prices go up as well. However, that is not the case of Palladium because of its limited usage. The general mass is not affected if the price of palladium is increased, at least the way they are affected when the Oil price is increased!
And what consequence you are referring to? More than countries, the general people like us gets affected through this kind of banning on any product! Let me quote Mahatma Gandhi once again,
"An Eye for an Eye Will Make the Whole World Blind"
Peace!
We can all like or hate it but this will effect all industries, not just car that use most of this. Cell phones have increase usage of Palladium from 1 percent to 7, while tv and computers are on 3. How if this moves come to be on that 1st May, what to expect that price will go high again or that come manufactures like states in one post here will move production to them. This could be logical move cuz in Russia it not banned trade, so they can use this for making necessary equipment for cars and electronics.
Only backfired can be that dont allow they to use cuz they are not Russian company, meanwhile we can only wait. Or they can buy from South Africa republic cuz they have some piece in this share of Palladium.
Only backfired can be that dont allow they to use cuz they are not Russian company, meanwhile we can only wait. Or they can buy from South Africa republic cuz they have some piece in this share of Palladium.
One Russian strategy that is likely to succeed in overcoming the country's economy, this seems to have strong courage in decision making.
There must be a positive impact of this policy for Russia.
There must be a positive impact of this policy for Russia.
How does this affect the regular investor though? Were they selling palladium bullions to people like they do gold, silver and platinum?
I don't think that regular investor is buying physical palladium or even that brokers are storing palladium somewhere to back up what its users are trading.
It is more likely to be that traders are just trading numbers and will probably continue to do the same.
but for sure, car manufacturers would surely place the price spike on top of their automobiles
As it was already mentioned no one should notice the car price changes. But what if Russia try to avoid this export ban by exporting catalyst instead of palladium?Or the 2nd case if things will get worse then car manufacturers can move their production to Russia to get better access to resources.
Even though I do not like the way they run the country, you gotta admit its totally deserved move.
Really?
So because the US has dared to increase its OWN oil production thus driving the price of oil lower, Russia, a country with huge oil reserves of everything but with a GDP the size of Spain has no other alternative than trying to play a revenge and extortion game?
Deserved move? Deserved for who?
Us, the normal people who just had a breath time with fuel prices going lower?
Who is getting punished by this move other than the consumer?
Their country has a lot of oil and they do make a lot of profit from it but since USA had some issues with it and managed to work with Saudis to drop the price of Oil to a pulp and than make it so that Russians have to sell oil for very cheap it almost broke their own economy.
And why is the economy of Canada and Norway not in pieces because of the drop in oil price?
Probably because they care more about their economy and are less focused on what to do to hurt the evil west than Russia?
Mining companies need to do more exploration in africa to find some palladium. They have plenty of precious metals there and will prevent russia from holding the world palladium economy to ransom
Russia is making smart moves, this is wise on their front. Their country has a lot of oil and they do make a lot of profit from it but since USA had some issues with it and managed to work with Saudis to drop the price of Oil to a pulp and than make it so that Russians have to sell oil for very cheap it almost broke their own economy. I remember their money becoming worth half of what it used to in just couple of days after that happened.
If you screw with a countries economy than it will have consequences as you might expect, if you do this kind of stuff to them than they will do the same to you, Russia making palladium ban so it goes up and flexing the world on how much they need Russia's palladium is a way of saying "you let me be and I will let you be" from them. Even though I do not like the way they run the country, you gotta admit its totally deserved move.
If you screw with a countries economy than it will have consequences as you might expect, if you do this kind of stuff to them than they will do the same to you, Russia making palladium ban so it goes up and flexing the world on how much they need Russia's palladium is a way of saying "you let me be and I will let you be" from them. Even though I do not like the way they run the country, you gotta admit its totally deserved move.
Interesting topic tho.
Palladium is a chemical element and was discovered in 1803 by William Hyde Wollaston. The reason why Russia will ban the exporting of Palladium just because they wanted to keep it and use it personally. What I mean is, I think Russia is not that satisfied with the value the global trades are offering to their precious metal and the only thing that will make them continue exporting it is when they will get their desired value of it.
Maybe the Russian Ministry of Trade and Industry noticed that the Palladium would worth more than what it values today and trying to rise it up by banning it because of its demand.
Palladium is a chemical element and was discovered in 1803 by William Hyde Wollaston. The reason why Russia will ban the exporting of Palladium just because they wanted to keep it and use it personally. What I mean is, I think Russia is not that satisfied with the value the global trades are offering to their precious metal and the only thing that will make them continue exporting it is when they will get their desired value of it.
Maybe the Russian Ministry of Trade and Industry noticed that the Palladium would worth more than what it values today and trying to rise it up by banning it because of its demand.
Two things about palladium that come to mind. One is that jewelry is listed as one of the uses for it, and I wasn't aware of that at all. I know of platinum jewelry--which always seemed silly to me, since it looks like silver but costs far more--but not palladium. I'm wondering what kind of jewelry gets made from it.
It's used as an alloy for more expensive variants of "white gold" and in my opinion a nicer color.
I have a bracelet made of this stuff, as I dislike gold and its color when it comes to men's jewelry.
Ahh, this explains why the lab I'm working at halted the procurement for Palladium for internal works, as the price has spiked yet again. Idk what effects will it have on independent labs that uses the metal for catalysis (well our lab has since stopped buying in the mean time) and certain experiments but for sure, car manufacturers would surely place the price spike on top of their automobiles.
Won't have that big effect, usually, the palladium in a normal size car is worth close 50$, when a brand new car costs 20-30k$ you won't even notice that.
Ahh, this explains why the lab I'm working at halted the procurement for Palladium for internal works, as the price has spiked yet again. Idk what effects will it have on independent labs that uses the metal for catalysis (well our lab has since stopped buying in the mean time) and certain experiments but for sure, car manufacturers would surely place the price spike on top of their automobiles. Though somewhat pricey and valuable, the volume for Palladium isn't that great compared to precious metals like gold and silver, as the target market for these bad boys are the large manufacturers and laboratories and not really for investment and whatnot.
How does this affect the regular investor though? Were they selling palladium bullions to people like they do gold, silver and platinum?
Yeah, it's traded like any other metal on commodity exchanges, though I'm fairly sure there's less volume done with palladium than gold or silver (not 100% sure about that.Interesting story, though. I don't suspect this is going to be a long-term price spike, as the Russia ban likely won't be either. Probably the best move for any trader, if it can be done, would be to short palladium or trade in futures with an eye toward the price being lower.
Two things about palladium that come to mind. One is that jewelry is listed as one of the uses for it, and I wasn't aware of that at all. I know of platinum jewelry--which always seemed silly to me, since it looks like silver but costs far more--but not palladium. I'm wondering what kind of jewelry gets made from it. The second thing is that Russia made some great palladium coins in the past, and I've always wanted to own those ballerina coins made in the 1980s, which were pure palladium. I often wondered why they chose that particular metal for the coin and did not realize that they had so much of it in their country. Neat.
How does this affect the regular investor though?
I think it won't affect the regular investor although it may affect some buyers.
Were they selling palladium bullions to people like they do gold, silver and platinum?
They are selling it to car manufacturer since they are the one who uses palladium.
The mentioned reason for the ban is Russia want to further refine it before exporting, which would increase the final selling price. I suppose the 5 month ban is so they can have a stockpile of refined metal first.
How does this affect the regular investor though? Were they selling palladium bullions to people like they do gold, silver and platinum?
How does this affect the regular investor though? Were they selling palladium bullions to people like they do gold, silver and platinum?
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