Palladium Surges as Crisis in Ukraine Threatens Supply

Remember last week when we pointed out that automotive demand and air quality concerns were driving up the price of palladium? Well, also mentioned in that article was that concerns about a threatened supply from Russia may drive the price up even further. Just that has happened this morning as palladium rose to its highest price since 2011, increasing 0.4 percent to $810.10 an ounce by 7:45 a.m. EST on the New York Mercantile Exchange. Additionally, gold reached a three-week high.

In early March, pro-Russian protesters occupied regional government buildings in eastern Ukraine. A deadline was set for the protesters to leave the buildings, which recently passed. In response, the United Nations Security Council held an emergency meeting and the U.S. and European Union threatened to place even tougher sanctions on Russia if President Putin threatens the sovereignty of Ukraine again.

Amidst the chaos, palladium prices have risen 13% so far this year. Investors are concerned that Russian exports of precious metals will be interrupted – a serious threat to the palladium supply, since Russia is one of the top producers of the lustrous silvery-white metal. The threat to supply is twofold as these concerns fall on top of the ongoing mine strikes in South Africa. And remember, low supply drives up demand and prices. James Moore, an analyst at FastMarkets Ltd. in London, calls it a “double-edged sword for palladium.”

Did you know that American Bullion can help individuals add Palladium to their retirement account through a self-directed IRA? Precious metals are a fantastic way to diversify your investment and retirement holdings. Savvy investors search for safe-haven investments like gold, silver, and palladium to protect their assets. Palladium has had an impressive track record over the past 10 years and many experts believe this trend will continue. Apply to open a Palladium IRA online or call American Bullion at 1-800-326-9598 to speak with a precious metals specialist.