Trade Platinum and Palladium with Traders Trust
Traders Trust is excited to announce that the broker is now offering CFDs on Platinum and Palladium.
The two precious metals were just added to Traders Trust’s instruments list.
Traders Trust will keep adding new trading instruments across all CFD Asset Classes so make sure you follow up on the updates.
Why trade Platinum and Palladium?
Platinum and palladium are two commodities worth considering when diversifying your portfolio.
- Precious metals can be used as part of a diversified portfolio to hedge against investment risk.
- Safe Haven
- Precious metals like platinum and palladium may keep their value during times of global upheaval.
- Inflation Hedging
- During periods of high inflation, commodities usually tend to hold their value.
What is Platinum?
Platinum, one of the top three most valuable precious metals, is traded around the clock in global commodities markets.
During periods of political stability, platinum can be priced higher than gold because the annual quantity of mined platinum is significantly lower than gold, and the cost of mining per ounce double.
Platinum is also considered an industrial metal and its price is largely determined by auto-sales and auto-production as it is used for producing automotive catalysts that reduce harmful emissions.
Jewelry making is the second biggest market for platinum, followed by petroleum, and chemical refining catalysts, and the computer industry.
Platinum is mostly mined in South Africa and Russia, making the metal prone to cartel manipulation which could support or even artificially increase prices.
Platinum is one of the most volatile precious metals.
What is Palladium?
Palladium is one of the rarest precious metals and is mostly used for industrial and electronic purposes.
The greatest industrial use for the shiny metal is in catalytic converters for automobiles as it absorbs hazardous fuel emissions.
The metal is harder and more durable than platinum.
Palladium is also used in the production of hybrid cars and has applications in solar energy and fuel cell systems and products.
75% of palladium is mined in the United States and Russia.
With the historic tension between the two nations, supply shocks are highly probable.
If Russia decides to curtail its palladium export, the metal’s price is likely to rise.
With a flourishing automobile industry in China, Russia keeping their stockpile a state secret, and new applications in solar energy and fuel cells, the prices of the precious metal often fluctuate.