Palladium price
| palladium | |
|---|---|
| Country: | Global |
| Subdivision: | 1 troy ounce = 31.1034768 grams |
| ISO 4217 code : | XPD |
| Abbreviation: | no |
|
Exchange rate : (December 3, 2018) |
1 XPD = 1,213 USD |
The palladium price arises from the interplay of fundamental market data such as supply of and demand for palladium ; it is also influenced by emotions (e.g. fear of inflation ), events, long-term developments, speculations and long-term expectations.
history
19th century
Palladium was discovered by William Hyde Wollaston in 1803 . He named it in 1804 after the asteroid Pallas discovered two years earlier . Wollaston found element 46 in South American platinum ore due to insufficient platinum yields from samples dissolved in aqua regia .
Palladium, first isolated from the raw platinum of the Chocó River in northwestern Colombia , has had a price since its discovery. In April 1803, anonymous notes printed in London were circulated, the author of which was subsequently determined by William Hyde Wollaston, Secretary of the Royal Society . On the slips of paper the discovery of palladium as the fourth precious metal was announced, and readers were advised that it could be obtained in samples of 5 shillings, half a pound and 1 pound sterling per grain of 1 shilling at the mineral dealer Jacob Forster, No. 26 Gerrard Street, Soho, London. The palladium entered the world at a price of 480 schillings per troy ounce (15.8 gold marks per gram), i.e. five and a half times the gold price .
As a silver-white, non-tarnishing precious metal that melted much higher than gold and silver, it was suitable for making jewelry from the start. It was able to increase its price because it was only found in very small quantities (mostly 0.1 to 0.7 percent) in raw platinum in Colombia and Russia , but also in natural osmiridium , some of which were far below the quantities of the other platinum metals . Until 1890, palladium was one of the most expensive platinum metals. Between 1860 and 1865 palladium was valued at 56.1 gold marks, from 1866 to 1870 at 50.50, from 1871 to 1875 at 32.80 and from 1886 to 1890 at 39.0 gold marks per gram. So it was 20 times as expensive as gold for decades. From 1893 to 1913, the price of 3 to 4 gold marks per gram had then adjusted to the meanwhile increased prices for platinum, iridium and osmiridium.
In the period from 1889 to 1899, the palladium content of the nickel magnetic gravel deposits in the Sudbury Basin in Canada , which is considerable compared to the platinum content, became known. The anode sludge and residues of these ores have produced at least as much palladium as platinum since 1899. With the increasing production of these world's most important nickel ore mines, it was only a matter of time before the palladium price would equalize or fall below the price of platinum.
20th century
In early 1917, the price of palladium was roughly the same as that of platinum. As this metal became increasingly difficult to obtain, the palladium price rose to 115 US dollars in mid-July and to 125 US dollars per troy ounce in September (15.70 and 17.10 marks per gram). At the end of 1917, when demand was high, palladium cost 130 to 135 US dollars (17.77 to 18.45 marks per gram).
In 1919 the palladium price finally fell below the platinum price after around 1,300 kilograms of palladium had been mined from the Sudbury ores. In 1923 palladium was then only half as expensive as platinum. In 1923 and 1924, the geologists Adolph Erasmus and Hans Merensky met in South Africa in the rich quartz veins of Waterberg , in the dunite pipe (Dunit-Pipe) Onverwacht near Rustenburg and in the sulphide ore of the Merensky Reef on a palladium guide that almost corresponded to that of platinum . As a result, the price of the palladium fell to half the price of platinum on an annual average by 1937. When the mining hopes of South African mining were not entirely fulfilled, and palladium increasingly served as a substitute for platinum and proved its worth, its price between 1938 and 1945 was around two-thirds of the platinum price.
While in the Korean War from 1950 to 1953 platinum again reached 2.5 times the gold price, palladium did not go along with this increase, so that in 1956 it only achieved a little more than a fifth of the platinum price. The most expensive platinum metal for almost 100 years had become the cheapest, as Sudbury in Canada, the main mining area on earth, produced as much palladium as platinum. The Soviet Union also appeared on the world market in 1946 with large quantities of palladium. The increased production and use of palladium also created a scrap palladium market.
After palladium was initially mostly used in dental technology, it was preferred in 1922 with 51.3 percent of the total use as jewelry metal. But since the palladium price had fallen even more than the platinum price - in 1918 palladium was valued at 1.3 times the platinum price, in 1939 only two-thirds, in 1958 only a quarter of the platinum price - processing into jewelry also declined and dropped to just 6.25 percent of total consumption in 1956. In contrast, the use in electrics (1925 = 10.5 percent, 1956 = 76.25 percent of total consumption) increased considerably. Its use in dentistry, which had risen to 63.5 percent in 1934, was only able to hold palladium in quantity in the 1950s and 1960s. In the chemical industry, palladium was initially unable to replace platinum due to its lower acid resistance. It was not used until after the Second World War .
In the 1970s, stagflation prevailed in the industrialized countries with high inflation, weak economic development, low productivity and high unemployment. This period was marked by great uncertainty in the financial world, the oil crisis , a sharp rise in US national debt , a massive expansion of the money supply and a flight of capital investors into real assets. The palladium price increased ninefold between 1970 and 1980. It soared on March 6, 1980 on the New York Mercantile Exchange (NYMEX) to a high of $ 332.00 an ounce.
Two years later, on June 21, 1982, $ 48.50 had to be paid for the palladium future. Until 1996 the price was subject to strong fluctuations.
21st century
At the end of the 20th and the beginning of the 21st century, the original fantasy of the precious metal lay in its use as a vehicle catalytic converter for exhaust gas purification . This led to a massive increase in the demand for palladium and the formation of a speculative bubble . During this phase, investors feared there would be supply bottlenecks. Palladium was also artificially shortened by some producers, which triggered panic buying. On January 26, 2001, the palladium price hit a decade high at $ 1,090.00. Since the price of platinum was quoted at US $ 616.00 per troy ounce on the same day, the price of palladium was 1.8 times the price of platinum.
Due to the high price, palladium was increasingly being replaced by other components - for example by platinum - when used in the automotive industry . At that time, most investors sold their palladium stocks, which contributed to the subsequent price decline. From 2001 on, the price of the precious metal continued to fall. On April 17, 2003, the price in New York was quoted at 145.00 US dollars and thus 86.7 percent lower. At $ 1,588.05, the platinum price was 11 times higher during trading.
With the general commodity boom, the palladium price rose continuously again and reached a high of 595.10 US dollars per troy ounce on March 4, 2008. In the course of the financial crisis from 2007 onwards , the price fell significantly. On December 5, 2008, the price was quoted at a low of 161.00 US dollars. The crisis had crashed all asset classes. After that, the price trend remained volatile. On February 21, 2011 a price of 863.70 US dollars was determined for the palladium future. Eight months later, on October 5, 2011, the palladium price was $ 537.30.
The palladium price has been rising more or less continuously since 2013, while the platinum price has tended to fall since then. One troy ounce of palladium is now more expensive than one troy ounce of platinum (as of November 2018).
In December 2018, the palladium price exceeded the gold price for the first time since 2002 .
In December 2019, palladium first traded for over $ 2,000 per troy ounce. On January 17, 2020, the price of one troy ounce exceeded the mark of 2,500 US dollars for the first time, which was attributed to a supply shortage .
Palladium market
Market mechanisms
Palladium demand and supply change frequently. That is why the palladium price is very volatile . That is, it fluctuates considerably even within a short period of time. The palladium price is quoted in US dollars and is negatively correlated to the dollar price. So if the dollar rate falls, the palladium rate usually rises.
A clear disadvantage of palladium (compared to the established precious metals such as gold , silver or platinum ) is the lower liquidity of the market, since there is both less supply and less demand for investment coins made of palladium. The range of certificates on palladium is also much smaller than that for the more established precious metals. This usually leads to higher trading margins on the commodity exchanges and at coin dealers, which can be disadvantageous for investors. Possible advantages for long-term oriented investors are the less strong influence of traders and speculators on the price.
Palladium is only traded continuously on a few stock exchanges. Valued in US dollars, the palladium market is much smaller than other precious metals markets. If a lot of international investment capital flows into such a small market, the price jumps quickly.
Trading venues
For standardized palladium trading on commodity exchanges , " XPD " was assigned as a separate currency code according to ISO 4217 . It denotes the price of one troy ounce of palladium in US dollars. XPD is the currency abbreviation published by the International Organization for Standardization , which is to be used for unique identification in international payment transactions . The "X" indicates that this is not a currency issued by a state or confederation of states.
The International Securities Identification Number for Exchange Trading (ISIN) is XC0009665529. The Bloomberg ticker symbol for the spot market price of palladium is PALL <CMDTY>.
Primarily, futures on palladium are traded on the Tokyo Commodity Exchange (TOCOM), but also on the New York Mercantile Exchange (NYMEX). Until 2000, TOCOM was the most important exchange for palladium futures trading. This year severe restrictions were placed on futures trading. Since then, the exchange turnover has been evenly distributed between the Tokyo and New York commodities exchanges.
In the physical market (palladium in ingot form ), the off-exchange trading (English: Over-the-counter, OTC) is called, is the London Platinum and Palladium Market (LPPM) the most important trading platform worldwide. Only bars from refineries and mints that meet certain quality requirements are permitted for trading . The international seal of approval "good delivery" (German: "in good delivery") guarantees the embossed or stamped features such as fineness and weight. Palladium bars with good delivery status are accepted and traded worldwide.
Another marketplace for the physical trade of palladium is Zurich.
On the spot market prices are traded for immediate physical delivery, while fixed to the futures and options markets prices for deliveries in the future. The spot price and the price of the future usually run in parallel.
Palladium fixing
London has historically been an important center for this metal. The trade was introduced at the beginning of the 20th century, alongside the long-established bar metals. In 1973, some metal dealers introduced the London Platinum and Palladium Quotation, the forerunner of the fixings. An indication for the platinum and palladium price on the spot market was provided twice a day . In 1979, leading traders from London and Zurich reached an agreement to standardize the origins and specifications for the precious metals they would accept as “good delivery” deliveries. In 1987 the London Platinum and Palladium Market (LPPM) was founded. In 1989 the quotations for platinum and palladium were expanded and developed into full-fledged fixings. Since then, platinum and palladium fixing has been carried out by telephone twice a day with the aim of processing as many transactions as possible at a fixed price.
- Morning: Monday to Friday 9:45 a.m. UTC (10:45 a.m. CET )
- Afternoon: Monday to Friday 2:00 p.m. UTC (3:00 p.m. CET).
The meeting takes place every working day and is chaired by Standard Bank. A representative of the
- Standard Bank PLC
- Engelhard Metals
- Goldman Sachs International
- HSBC Bank USA NA London Branch and
- Johnson Matthey
who are all members of the London Platinum and Palladium Market (LPPM).
Palladium plant
Investing in palladium can be done through physical purchase and securities trading. Palladium bars and investment coins can be purchased from banks, precious metal and coin dealers. There are rental and insurance costs for storage in a bank safe. In the scope of some household contents insurance, however, valuables stored in (bank) lockers are included up to a certain maximum amount. The purchase of bars and coins made from palladium is subject to sales tax .
Investors can invest in certificates , funds or exchange-traded funds (ETFs) directly via the stock exchange or broker . Physical delivery is no longer required. Certificates are dependent on the solvency of the issuer and influence the demand situation on the commodity exchanges indirectly via the banks' hedge transactions (Certificate → Future → Spot ).
Well-known investment coins are, for example, the Palladium Maple Leaf and the Panda . Sierra Leone minted the first palladium coins in 1966 . Tonga began issuing the Tonga Palladium Hau palladium coin in 1967. Since then, a number of countries have minted palladium coins: Australia, Bermuda , China, Cook Islands , France, Isle of Man , Canada, Palau , Portugal, Russia, Samoa , Switzerland, Slovakia, the Soviet Union and the US Poarch Creek Nation . Most of them were special commemorative coins. The Soviet palladium coins are the most common on the German market, as they were sold on a larger scale by mail order companies such as MDM in the early 1990s . Even so, the market for palladium coins is by far the smallest of the four major precious metals.
Platinum-palladium price ratio
The platinum-palladium ratio indicates how many units of palladium are needed to buy one unit of platinum. It shows the value relationship between the two precious metals. Since both metals are used in a similar way, a comparison is useful. A low ratio value indicates that platinum is undervalued compared to palladium, while a high value indicates that platinum is overvalued compared to palladium. In times of crisis, the palladium price, with its higher dependency on industrial use, often collapses much more sharply than the platinum price. In financial history, palladium was the more valuable metal until 1919, but since 1920 the price of platinum has mostly been higher than the palladium price.
The following are the annual high, low and closing levels of palladium in US dollars per troy ounce. The data relate to the prices on the New York spot market until 1976, then to the prices for the palladium futures , which began trading on January 3, 1977 on the New York Mercantile Exchange (NYMEX). The table also shows the annual closing levels of platinum and the platinum-palladium ratio for the same period. The table also shows the performance of both precious metals.
| year | Palladium peak |
Palladium low |
Closing level palladium |
Change in% |
Final level platinum |
Change in% |
Platinum to palladium ratio |
|---|---|---|---|---|---|---|---|
| 1968 | 42.00 | 37.00 | 42.00 | 10.53 | 247.70 | 106.42 | 5.90 |
| 1969 | 43.00 | 37.00 | 37.00 | −11.90 | 161.00 | −35.00 | 4.35 |
| 1970 | 37.00 | 36.00 | 36.00 | −2.70 | 124.10 | −22.92 | 3.45 |
| 1971 | 37.00 | 36.00 | 37.00 | 2.78 | 110.20 | −11.20 | 2.98 |
| 1972 | 60.00 | 37.00 | 60.00 | 62.16 | 144.50 | 31.13 | 2.41 |
| 1973 | 84.00 | 60.00 | 84.00 | 40.00 | 165.00 | 14.19 | 1.96 |
| 1974 | 143.80 | 84.00 | 132.50 | 57.74 | 165.00 | 0.00 | 1.25 |
| 1975 | 124.32 | 44.00 | 44.00 | -66.79 | 149.40 | −9.45 | 3.40 |
| 1976 | 55.00 | 40.00 | 55.00 | 25.00 | 152.00 | 1.74 | 2.76 |
| 1977 | 59.80 | 41.50 | 52.50 | −4.55 | 189.20 | 24.47 | 3.60 |
| 1978 | 84.30 | 52.40 | 72.50 | 38.10 | 354.60 | 87.42 | 4.89 |
| 1979 | 190.00 | 70.10 | 182.50 | 151.72 | 692.60 | 95.32 | 3.80 |
| 1980 | 332.00 | 141.50 | 142.25 | −22.05 | 606.00 | −12.50 | 4.26 |
| 1981 | 149.00 | 63.00 | 69.30 | −51.28 | 384.10 | −36.62 | 5.54 |
| 1982 | 102.00 | 48.50 | 97.50 | 40.69 | 392.60 | 2.21 | 4.03 |
| 1983 | 174.00 | 93.00 | 157.45 | 61.49 | 399.50 | 1.76 | 2.54 |
| 1984 | 166.75 | 120.00 | 121.50 | −22.83 | 293.00 | −26.66 | 2.41 |
| 1985 | 129.75 | 90.00 | 95.40 | −21.48 | 346.20 | 18.16 | 3.63 |
| 1986 | 152.50 | 94.00 | 118.30 | 24.00 | 476.20 | 37.55 | 4.03 |
| 1987 | 160.00 | 103.65 | 123.60 | 4.48 | 507.60 | 6.59 | 4.11 |
| 1988 | 145.25 | 113.00 | 129.00 | 4.37 | 515.60 | 1.58 | 4.00 |
| 1989 | 184.00 | 129.25 | 135.50 | 5.04 | 496.30 | −3.74 | 3.66 |
| 1990 | 139.90 | 80.55 | 81.25 | −40.04 | 414.00 | −16.58 | 5.10 |
| 1991 | 102.50 | 77.50 | 80.65 | −0.74 | 339.20 | −18.07 | 4.21 |
| 1992 | 113.00 | 77.80 | 104.45 | 29.51 | 352.60 | 3.95 | 3.38 |
| 1993 | 144.50 | 95.50 | 124.35 | 19.05 | 397.50 | 12.73 | 3.20 |
| 1994 | 164.00 | 122.50 | 160.25 | 28.87 | 421.20 | 5.96 | 2.63 |
| 1995 | 182.90 | 128.80 | 129.65 | −19.10 | 401.90 | −4.58 | 3.10 |
| 1996 | 147.50 | 116.00 | 124.05 | −4.32 | 374.60 | −6.79 | 3.02 |
| 1997 | 227.60 | 120.25 | 203.15 | 63.76 | 368.80 | −1.55 | 1.82 |
| 1998 | 419.00 | 200.00 | 332.15 | 63.50 | 367.20 | −0.43 | 1.11 |
| 1999 | 455.00 | 280.00 | 449.20 | 35.24 | 422.20 | 14.98 | 0.94 |
| 2000 | 975.00 | 431.50 | 954.45 | 112.48 | 608.10 | 44.03 | 0.64 |
| 2001 | 1090.00 | 310.00 | 448.00 | −53.06 | 485.00 | −20.24 | 1.08 |
| 2002 | 447.00 | 224.00 | 238.00 | −46.88 | 594.40 | 22.56 | 2.50 |
| 2003 | 274.00 | 145.00 | 197.50 | −17.02 | 805.30 | 35.48 | 4.08 |
| 2004 | 344.70 | 170.60 | 185.25 | −6.20 | 859.70 | 6.76 | 4.64 |
| 2005 | 305.00 | 170.20 | 261.50 | 41.16 | 976.00 | 13.53 | 3.73 |
| 2006 | 409.00 | 262.00 | 338.95 | 29.62 | 1142.00 | 17.01 | 3.37 |
| 2007 | 389.50 | 315.20 | 375.15 | 10.68 | 1517.50 | 32.89 | 4.05 |
| 2008 | 595.10 | 161.00 | 190.50 | −49.22 | 945.00 | −37.73 | 4.96 |
| 2009 | 407.90 | 176.15 | 406.90 | 113.60 | 1470.80 | 55.64 | 3.61 |
| 2010 | 803.50 | 380.40 | 803.50 | 97.47 | 1773.10 | 20.55 | 2.21 |
| 2011 | 863.70 | 537.30 | 656.30 | −18.32 | 1403.25 | −20.86 | 2.14 |
| 2012 | 727.40 | 556.40 | 704.60 | 7.36 | 1543.00 | 9.96 | 2.19 |
| 2013 | 788.00 | 630.30 | 716.00 | 1.62 | 1371.00 | −11.15 | 1.91 |
| 2014 | 913.00 | 695.90 | 797.60 | 11.40 | 1209.15 | −11.81 | 1.52 |
| 2015 | 833.00 | 520.90 | 563.10 | −29.40 | 892.50 | −26.19 | 1.58 |
| 2016 | 775.92 | 451.80 | 680.23 | 20.80 | 905.65 | 1.47 | 1.33 |
| 2017 | 1064.50 | 680.30 | 1061.00 | 55.98 | 938.30 | 3.61 | 0.88 |
| 2018 | 1210.20 | 815.20 | 1197.20 | 12.84 | 800.60 | −14.68 | 0.67 |
| 2019 | 1974.60 | 1190.10 | 1909.30 | 59.48 | 977.80 | 22.13 | 0.51 |
See also
Web links
- Palladium fixing in London current and historical (in USD and GBP: from 1990, in EUR: from 1999)
- Historical prices in dollars (from 1977)
- Historical prices in euros (from 1977)
- Historical prices in Swiss francs (from 1977)
Individual evidence
- ^ William Hyde Wollaston: On a New Metal, Found in Crude Platina. Phil. Trans. R. Soc. Lond. January 1, 1804, 94 , pp. 419-430; doi: 10.1098 / rstl.1804.0019 ( full text ).
- ^ William Hyde Wollaston: On the Discovery of Palladium; With Observations on Other Substances Found with Platina. Phil. Trans. R. Soc. Lond. January 1, 1805, 95 , pp. 316-330; doi: 10.1098 / rstl.1805.0024 ( full text ).
- ↑ a b c d e Ferdinand Friedensburg, Johann Paul Krusch: The metallic raw materials: their storage conditions and their economic importance. Ferdinand Enke Verlag, Stuttgart 1962, Volume 16
- ^ Journal of practical geology. Published by Julius Springer, Berlin 1918, Volume 26
- ↑ a b United States Geological Survey: Platinum-group metals (PGM) prices 1880–1998 (PDF; 55 kB)
- ^ Frankfurter Allgemeine Zeitung: Price of palladium in a long-term downward trend , June 25, 2003
- ↑ Palladium price at record high - gold is hardly more expensive. In: Handelsblatt . November 16, 2018, accessed December 4, 2018 .
- ↑ Christoph Rottwilm: $ 1,500 - Palladium price rises to a record high. In: Manager Magazin . February 20, 2019, accessed December 22, 2019 .
- ↑ Jakob Blume: Why the palladium price has exploded since the beginning of the year. In: Handelsblatt . December 17, 2019, accessed December 22, 2019 .
- ^ Peter Hobson: 'There's no metal': Record-breaking palladium races higher. In: Reuters . January 17, 2020, accessed on January 17, 2020 .
- ↑ London Platinum and Palladium Market: Good Delivery Standards ( Memento of the original from July 22, 2012 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Deutsche Bank: Edelmetalle ( Memento of the original from January 30, 2012 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ London Platinum and Palladium Market: List of Members ( Memento of the original of July 22, 2012 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
- ^ Federal Ministry of Justice: Value Added Tax Act
- ↑ International Bullion Exchange: Palladium Coins
- ^ NGC Collectors Society: The Collection of Palladium Coins of the World
- ↑ Palladium coin catalog 2014, Gietl-Verlag, Regenstauf, ISBN 978-3-86646-846-7
- ↑ Stooq: Historical prices of palladium
- ↑ Stooq: Historic Prices of Platinum
