Palladium futures CFD trading with Friedberg Direct
It’s not kryptonite, and we hope it cannot harm any superhero; however, it is still one of the rarest metals on earth. Palladium CFD trading has seen some major changes over the years, and has surged by over 500% since the beginning of the 2000s.
- Trade with leverage on Palladium CFDs
- 30 times rarer than gold
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The Palladium Market
The palladium market is open from 23:00 to 21:59 GMT Monday to Friday, and includes the New York Mercantile Exchange (NYMEX). Most of the Palladium mined, around 60%, goes to the auto industry. Other consumers of palladium are jewellery, electronics and dentistry.
The price of palladium is determined against the USD, even though most of the mined palladium doesn’t come from the US. Palladium is measured in Troy Ounces, and the minimal amount needed to commence a trade is one troy ounce.
What Influences the Price of Palladium
As one of the rarest precious metals that exist on the planet, the price of palladium has seen fluctuations that might not be common for most assets. From a price of 168 USD in 2001, palladium rose to 858 USD in 2005 – a change of over 500% over a span of about 4 years. So what can cause changes in palladium price?
- As Russia supplies nearly 50% of the world’s palladium and another 30% – South Africa, the two countries have gained control over the market and can affect the price. Another element is that Russia refuses to reveal how much palladium they have stored and how much is mined; therefore, it is unknown how much they will supply in future years. Low estimates can generate an increase in price.
- The general political and economic state can always affect the different markets; however, the fact that two countries only are the main suppliers implies even more risks. A change that will affect one of them, especially Russia, can cause an upheaval in the palladium market. It is important to remember that often metals are linked to one another, so a dramatic change of palladium price might also result in other metals’ prices changing.
- As mentioned before, some 60% of palladium usage goes to the auto industry. As more people buy and use cars, the price of palladium will rise as the demand rises. This is also true, naturally, for other industries that consume palladium; but as the auto industry is the main one by far, it has the most effect on its price.
Trading Palladium with Friedberg Direct
As a unique and rare metal, palladium holds within it some exciting options. Its volatility is not high, yet traders do favour palladium trading. Knowing that, Friedberg Direct offers its clients trading commodities, including this rather rare asset while enjoying all the top services provided by Friedberg Direct.
Join Friedberg Direct today and start trading on over 100 instruments, including palladium and other rare trading instruments.