Let's take a closer look at one of the members of the precious metals, palladium. Did you know that in 1997 the price of palladium was but $100 per ounce and by the end of 2000 it had reached almost $1,000 per ounce?

The history of palladium is tied to platinum and the platinum group metals, including palladium. Questions remain as to whether platinum and palladium were considered to be two metals early in the history of civilization. The history of palladium can be seen in ancient Egyptian artifacts, the most famous example being the small platinum bars inscribed on some hieroglyphic inscriptions from the 7th century B.C.

The most successful early exploitation of platinum and palladium in the New World was developed by the Esmeraldas of the northern Gulf region of Ecuador centuries before the arrival of the Spanish. Small pieces of jewelry, earrings, pendants, etc. were found to be made of platinum, or a combination of gold and platinum metals, demonstrating excellent, skillful metallurgy.

The sources of palladium production are very limited. Over 80% of global palladium production is concentrated in two countries: the Russian Federation and South Africa. The Russian Federation accounts for almost half of the total palladium supply. The Russian Federation is also the only country that holds significant palladium stocks, although many believe that their levels are significantly lower. The actual level of Russian palladium stocks is a state secret. The Russian government's export policy has greatly influenced the global supply of palladium and has contributed to price instability.

The most widely used palladium is used in automotive catalytic converters. As the purchase of automobiles becomes more popular nowadays, this requires more and more use of palladium. Another important application for palladium is in electronics, where components containing palladium are used in a variety of electronic devices, from basic consumer products such as iPods and cell phones to composite military hardware for fighter jets. Although each component contains only 1 gram of palladium, the consumption of palladium is huge due to the relatively large quantities. Other important applications for palladium are in the chemical, photographic, fuel cell, water purification, petroleum processing, and pharmaceutical industries.