Palladium
The outlook for palladium is robust as the metal has seen strong demand from the
auto catalyst industry accounting for roughly 50% of its usage. 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 5% in 2007, however this will not be able to keep up with the expected
8% increase in demand.
Produced as a by-product 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 the largest producer 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
of Palladium
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.