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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- A fully regulated Canadian broker
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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. Don’t forget to check out the CFD Rollover dates to know when the current contracts expire.
Join Friedberg Direct today and start trading on over 100 instruments, including palladium and other rare trading instruments.
Palladium Trading FAQs
- Should I trade palladium?
Traders who like gold and silver because they are both rare and valuable will really appreciate palladium, as it is one of the rarest metals on Earth. Palladium is over 30 times more rare than gold, and in addition to its role as a precious metal, it also serves as an industrial metal, with some 60% of all palladium being used in the automotive industry. That connection actually makes it easier to trade palladium, since its price often follows trends within the auto industry, rising when car sales are hot, and falling when the automakers are struggling.
- Is palladium the best precious metal to trade?
The price of palladium was rising strongly from 2016 to 2019, and many traders took advantage of that trend in which palladium tripled in price. A correction was forced by the rise of the coronavirus pandemic, but palladium could be the first metal to recover as supplies of the grey metal have lagged demand for nearly a decade. That could give traders an opportunity in this most rare of precious metals.
- What is the best palladium trading strategy?
Fundamentally palladium looks to be in an excellent position, with automotive demand continuing to grow, supplies of the metal constrained, and investment interest in the market growing. That could make a trend following strategy very useful. Buying on breakouts of dips will allow traders to capture most of the upside potential in palladium. When demand from China and India increases, this will help prices, but because supplies of palladium are also limited, the metal faces a strong uptrend that could last for years to come.
These FAQs, comments/analysis do not take into consideration your individual personal circumstances and trading objectives. Therefore, they should not be considered as a personal recommendation or investment advice. They are intended for educational purposes only. Past performance is not indicative of future results. There is no guarantee that the contents or instructions will result in profits or not result in losses.