Rare Coin Dealers

Since 2009, palladium prices saw nearly to a three-fold increase. The price increase of palladium somewhat mirrors that of silver which increased from $200/oz. to $700/oz. since 2009.

Some speculators want to call a bluff on Russia’s alleged surplus of palladium and claim that it is either gone or currently dwindling only in trace amounts. If they do possess palladium at all, it does not seem likely that the amount could make as significant an impact on the market as Russian palladium power-plays did in the past.

South Africa, the nation with the world’s second larges palladium output second only to Russia, will likely encounter a spike in mining and export costs in the near future due to labor issues.

With these two former national strongholds of palladium production reeling, America may prove itself a potential dark horse. As long as American automobile production and demand continues to intensify, we can expect per ounce prices for platinum and palladium to rise respectively to $3,000 and $2,000. The deficits for both metals only seem as though they will increase. During the course of 2010, palladium doubled in value.

The CEO of Montana’s Stillwater Mining, Fred McAllister, predicts the continuity of all the above-mentioned trends in the near future.

The more that scientists, chemists and engineers explore the potentials of palladium, the more suited the metals seem to take many of the responsibilities often thought exclusive to platinum.

McAllister referred to Stillwater’s revenue in the first ¼ of the year at an estimated $37,000,000. This figure demonstrates just under a 200% increase since the same time period of the previous year and the company continues to expand. They also purchased a Canadian company, PGM Corporation, for $118,000,000 this past year.

Another pet project of Stillwater’s is a mine called “Marathon” which they intend to complete in Ontario, Canada by 2014 or 2015. Marathon on its own represents a $450,000,000 endeavor. The mine sits about 10 kilometers north of the Ontario, Canada, in a town of the same name. The mine should enjoy a life span of roughly 11-12 productive years. Still predicts the project will provide roughly 300 contract jobs for construction and over 250 jobs for mine operators and personnel.
If Stillwater continues its fiercely aggressive trajectory of expansion, merges and diversification, it should not at all surprise us to find the U.S. country as one of the next powerhouse palladium producers.