Palladium’s outlook is promising as the metal has seen strong demand from the auto catalyst industry accounting for roughly 53% of its usage. This is all part of the global “Going Green” movement. There is also strong demand for jewelry and a host of industrial applications many of which are growth markets and should continue to push prices higher. Investment demand has also increased in recent years. On the supply side output is expected to grow by 7% in 2012 however this will not be able to keep up with the expected 8% increase in demand.
With the rising price of Platinum due to Supply/Demand imbalances, auto catalysts are becoming quite expensive to manufacture. Emissions laws and regulations are also becoming stricter with the growing demand for environmental preservation. Auto manufacturers must comply with these rules and regulations and the minimum required catalyst per vehicle has risen significantly. In the past some vehicles came with none or perhaps one exhaust catalyst converter. Today the average vehicle includes between 2 to 6 if not more.
Produced from the same ore of platinum and nickel mining. Palladium is primarily an industrial metal, often applied in a number of uses as an alloy of platinum. Investment demand for palladium exists, although to a lesser extent than gold, silver, and platinum. Russia is one of the largest producers of palladium. The second largest source of palladium flows from South Africa, with smaller amounts of palladium recovered in Canada, the United States, Brazil, Australia, Finland, and Zimbabwe.
Primary uses for palladium are electronics, cold fusion experiments, and platinum-based auto catalysts. Palladium is also used in electronic components and connectors. Palladium paste is used in semiconductors found in most personal computers, cellular telephones, and an enormous range of electronically controlled devices. Palladium is also combined with gold to create dental alloys. Palladium is joined with gold to lighten the color of the alloy and heighten its corrosion-resistance properties.