Where Does Palladium Come From?

The Origins Of Palladium

Palladium is a precious metal used the world over in industry, jewelry production, and investment.  It is a rare metal extracted from the earth’s crust.  Palladium is unique in that it is a very hard, rigid metal similar to platinum; however it has a low melting point.  This means palladium has many uses as it’s a very dependably strong yet workable metal.  Palladium is mined in many countries but it comes principally from Russia, South Africa and North America, meaning the United States.  The process of mining palladium from the earth involves several steps from extraction in raw and contaminated form to the palladium bars you see sold and traded across the world.  There is also a significant amount of palladium that is recycled from old machine and vehicle parts.  This recycled palladium accounts for 6% of the total amount of palladium ore collected across the world.  Palladium ore is in short supply, is difficult to mine, and is in demand all across the world.  All three of these things combine to make it a precious metal, and gives palladium it´s value.

Why Palladium Ore

Palladium ore was almost unheard of in precious metal investment circles.  It has only been in the last few decades that palladium ore has become a precious metal of interest to commodities investors.  The reason is simple: demand for palladium ore has increased while palladium ore production has stayed relatively even.  This causes a pull or demand on the precious metal palladium causing its price per troy ounce to increase.  In 2001 when there was much hype about the increasing use of palladium ore in the car manufacturing industry, the price of palladium ore outpaced briefly the cost of gold.

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