What does the god of wisdom; courage and inspiration have to do with precious metals? Well, in the case of palladium, the metal was named after an asteroid which in turn was named after the famed Greek goddess.
It may not be as renowned as silver gold or platinum but trading in palladium binary options can be a precious addition to your profit margin.
Palladium is quite rare and global production is roughly 200 tons per year with roughly 40% produced in Russia and South Africa each, with the US and Canada being the only other major producers of the metal, at 6% and 5% respectively.
It is really quite a wonder that so little palladium can sustain such a great variety of industries and applications, palladium is currently used in anything from Jewelry to dentistry to surgical instruments and even watch making and catalytic convertors to name but a few uses.
By far, the most popular use for palladium is in catalytic convertors, due to the composition of the metal it is able to, when in fine enough form and in contact with other chemical agents, reduce harmful emissions emanating from cars and in other forms even factories that produce and house various gasses.
Palladium’s relatively high conduction also makes it viable for various uses within the electronics industry where it is used for connector plating, soldering materials and various electrodes.
Due to the relatively small amount produced globally the premium for palladium is quite high and even relatively small changes in the supply and demand chain can have disastrous effects, for example – in the couple of years that preceded the new millennium the Russian government, for various political reasons, failed to approve the yearly quota to be exported causing a massive spike in palladium prices which soared to an all-time high of $1100 per ounce in early 2001, around that time, fearing a global shortage, the Ford vehicle company began stockpiling large quantities of palladium to avoid disrupting its operation, but shortly after that all-time high, prices took a dive and the resulting overflow of palladium ended up costing ford in excess of $1 billion.
Due to the fact that Russia is the largest supplier of palladium, there are concerns in recent years that the shortage of the metal will become ever more persistent as Russia continues to politically distance itself from the west, while it seems a little unlikely Russia will forgo the obvious capital gains it can achieve with sales of palladium it is not entirely out of the question it will raise the amount it maintains for uses within itself and decrease the amount exported annually.
The example above is possibly the greatest impact on prices of palladium binary options – as the demand far exceeds world supply. At best, palladium supply will remain constant, and there won’t be any interruptions to its worldwide distribution, but the alternative is either supply issues that cause another spike in prices or even worse, a change of direction and reliance on alternatives that will reduce the precious metal to a near afterthought.
Whatever the future may hold for palladium binary options, it would be a good time for you, as a trader, to get in on the action, because as you well know, you can’t really lose, no matter the direction the market takes.