Palladium is proving so popular with investors that Russia may be running out of stockpiles to sell next year, it has been suggested.

Anton Berlin, Marketing Director at metals giant Norilsk Nickel, admitted that it is impossible to know for sure how much palladium the government has in reserve.

However, in an ETF Securities conference call quoted by Platts, he claimed that sales of the metal have slowed in the past two years, suggesting that the country's resources must be severely depleted.

Mr Berlin noted that in Switzerland, where investors tend to 'store' precious metal stocks in vaults, a "remarkable" drawdown of 800,000 oz was recorded between January and July.

According to the expert, the rosy palladium investment picture can be attributed to increasing legislation on auto catalysts, rising jewellery demand in China and higher electronics industry usage.

He also suggested that South Africa's ongoing power issues, lower ore grades and increasingly regular industrial action are cause for concern on the supply side.

However, the overriding sentiment on the metal was positive, with cautious optimistic expressed about the potential of mineral-rich Zimbabwe, if the political turmoil in the country can be resolved.

"There are bullish news [and] messages [around palladium]," Mr Berlin said during the conference call.

"Downside risk is not huge in numbers or possibility … [Palladium] could bring a fortune to those wise enough to invest in it."

Norilsk Nickel is the world's largest producer of both nickel and palladium.

Source:


Norilsk Nickel's Berlin says Russian palladium stocks likely low (14/09/10) 

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