Palladium Investment: Intro and History
History
Palladium has a history that is sealed with that of platinum, with which it is found, and with which it is also associated as a member of the platinum metals group, also known as the noble metals. “Native platinum” refers to the natively occurring platinum which is not actually pure platinum at all, but rather a natively alloyed mix of platinum group metals including palladium. Palladium was not separated from platinum for quite some time after the discovery of native platinum, so the early history is a shared one.
Despite being worked with some skill by South American Indians over 1,000 years ago, not until the Spanish conquest of the New World during the fifteenth and sixteenth centuries did news reach Europe of a new white metal with unusual properties. The Spanish first considered the metal a nuisance because it interfered with their gold mining activities. In fact, since native platinum was considered of little value, it was soon being used by forgers to adulterate Spanish gold coins. The coins were struck in native platinum then gilded with gold to look like genuine gold coins. Platinum’s extraordinary properties did interest European scientists where platinum was noted as a substance that could not “melt by fire or by any of the Spanish arts.” It was heavier than gold and virtually impossible to corrode with gases or chemicals and, in 1751, recognized as a newly discovered element.
From the Greek name “Pallas”, goddess of wisdom, Palladium was discovered by the British chemist William Hyde Wollaston in 1804. It took nearly two centuries for palladium’s significance to be recognized, and the fight against global pollution owes a lot to this unique metal.
Following the perfection of his technique to obtain pure samples of platinum in 1801, William Hyde Wollaston went on to isolate palladium from platinum two years later by dissolving native platinum in aqua regia (a mixture of hydrochloric and nitric acid). He named it after Pallas, the ancient Greek goddess of wisdom whose name had also been recently lent to the second asteroid ever discovered.
In an attempt to keep his techniques a secret, Wollaston offered samples of palladium for sale anonymously and his peers were cynical about the new metal’s provenance, suspecting that it was an alloy of platinum. This forced him to publish details of his findings in 1805.
Why
In the auto catalyst industry, palladium is currently a lower-cost substitute for the more expensive alternative, platinum. As this is written, palladium sells for around one-quarter the price of platinum. But that has not always been the case. In late 2000 and early 2001, for example, due to supply disruptions and a 
resulting panic by auto manufacturers (most notably, Ford Motor Co.), the price of palladium reached an all-time high of nearly $1,100 an ounce, approximately the same price as platinum at the time.
Over half of the world’s annual supply of palladium comes from Russia…and the amount and status of Russian palladium supplies are state secrets. In the past, Russia has routinely withheld supplies of palladium from world markets for its own political and/or economic gain, resulting in very large and very fast fluctuations in palladium prices.
It is this historical range of prices, and the price differential between palladium and platinum at any given time, that gives palladium its attractive investment potential. The price of palladium has been, and could again be, extremely volatile, providing investors with a significant opportunity for speculative profit.
Palladium bullion is available from Superior Gold Group in 10-ounce bars of pure .999 fine palladium. Each bar is manufactured by one of the world’s leading refiners, and is hallmarked to certify weight and purity.
Call Superior Gold Group Today
Call a Superior Gold Group Account Representative today to discuss whether a Palladium bullion investment is right for you and how you could add Palladium to your investment portfolio.
Superior Gold Group Account Representatives are normally available between 8:30am and 4:30pm Pacific time each Monday through Friday (except national holidays)…and on many weekends.
You’ll see why Superior Gold Group has been Building Wealth You Can Touch, With People You Can Trust™ 2000.
Written by samuel maxwell on January 28th, 2008 with
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