New York, New York (PressExposure) March 20, 2012 -- Danny Esposito, contributor to Penny Stock Detectives, believes it is fundamentally important to understand that, over the last few years, palladium mined out of the ground was not able to meet current demand in the marketplace. In his recent Penny Stock Detectives article, Esposito points out that Russia is currently dipping into its stockpile to meet the palladium demand throughout the world, but that stockpile is finite.
Palladium is a silvery white metal that has the lowest melting point of all of the precious metals. Discovered only 200 years ago, palladium has had very limited use as a currency. In the 1980s, France, Russia, and China circulated coins that were mostly made of palladium.
"The largest concentrations of palladium are found in Russia and South Africa," says Esposito. "Both countries supply 85% of the world market."
Esposito notes that Russia, years ago, decided that palladium investing was important to it and so created a stockpile. Now that demand has exceeded supply throughout the world, Russia is dipping into its stockpile to meet the supply shortage.
Esposito states that palladium investments have been made in many industrial applications like electronics, chemicals, glass, and other emission-control equipment. Palladium can be found in gas-powered machinery, from garden equipment, to spark plugs for aircraft, to surgical instruments.
Worldwide industrial demand for palladium investing grew seven percent in both 2010 and 2011, Esposito notes. Research and development continues to direct money into palladium investing, in order to uncover new industrial uses for this precious metal. The largest use-the greatest palladium investing-comes from the auto industry, says Esposito. Specifically, palladium investing is concentrated in catalytic converters.
"New legislation in the U.S., the European Union, and Japan this year demands an improvement in vehicle emission standards," states Esposito. "As a result, there is a lot of investment in the next-generation catalytic converters, in order to meet the new standards-palladium investments, that is."
Since palladium is the metal with the lowest melting point, palladium investing is most likely going to be a critical part of the next-generation catalytic converter, according to Esposito.
Since supply currently cannot meet demand, this is an incredibly bullish scenario for palladium, argues Esposito. Add to this the fact that money-printing has not stopped either and this makes palladium investing itself attractive.
Russia's stockpile can't last forever, as demand increases. With this backdrop, Esposito is strongly urging investors to seriously look into the other overlooked precious metal, palladium.
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