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US dollar symbol

By Heather Matthews - Exclusive to Palladium Investing News

Palladium and platinum values have tumbled on world markets as auto sales continue to stall, and the proposed 700 billion dollar bailout by Congress may or not be reconfigured to pass into law. Palladium has been plagued with a variety of problems over the past year, and, over the past quarter, it has declined a staggering 56%. Currently, at the New York Mercantile Exchange, palladium is going for $202.70 per troy ounce ^[2], a 7.7 percent decrease over yesterday's close.

The US dollar saw an amazing rise on world markets today, probably due to a second bailout plan, which may succeed in being passed through Congress in the near future. The US dollar is currently rallying against the faltering Euro, and trading as high as 79.37 ^[3], a 2.45 percent increase, on the dollar index, a measurement against other world currencies.

There are several problems with palladium demand at the moment, despite increased usage by Japan and China in jewelry design, and as a substitute for more costly precious metals such as platinum and gold in industrial manufacturing (catalytic converters for vehicles, electronic components). The biggest problem facing the palladium investor at present is the massive obstacles facing the American economy due to the failure of banks and investment houses: many investors are afraid that this will only further impact the ongoing decline in auto sales and production, as well as causing a real decrease in demand for luxury items like jewelry that is made with palladium.

The panicked selling witnessed on Sept. 29.08 (Monday) as the bailout plan was voted down in Congress has abated somewhat, and stocks on the Dow Jones index have jumped 400 points as investors have heard rumors of a second bailout plan which seems to have a better chance of making through a House vote. On Monday, stocks fell at a rate not witnessed since the aftermath of the terrorist attacks on Sept. 11^th, when fear rippled through the stock market in 2001.

Company News for Palladium - Sept. 30/08

Colossus (TSX:CSI) - Today, this company, which develops mineral resource properties in Brazil, reported excellent results at its Sierra Relada Project in Para State Brazil. They have intersected more high-grade platinum, palladium, and gold in this area, which they are developing as a joint venture with COOMIGASP. Current TSX stock quotes for Colossus are: 1.70 per share, down .02 over yesterday's close.

OAO GMK Norilsk Nickel - This Moscow-based conglomerate is the largest global producer of palladium, which they produce as a by-product of their nickel smelting operations. According to analysts, Russian stockpiles of Palladium may be exhausted next year of demand increases through the increased desire to palladium as a gold and platinum substitute on world markets. 

Today, on the Moscow Interbank Currency Exchange, Norilsk stock was down ^[4], trading at 3479.00RUB, with a percentage decrease of .66 percent.

North American Palladium (TSX:PDL): Stock values plunged 7.56 percent for North American Palladium as reports of stalled auto industry sales and production combined with US stock market woes to produce an across-the-board decrease in palladium investor confidence. On September 15, 2008, NAP announced the appointment of a new CEO, who will oversee Lac-Des-Iles mining explorations, as well as other projects, during this difficult market climate.

Stillwater (NYSE:SWC) - Stillwater stock showed increases on the Sept. 30, 2008 NYSE index, rising 2.47 percent, to a share price of 5.81. Stillwater headquarters are based in Billings, Montana, and they are involved with the mining and production of platinum group metals in the area of Montana, USA, known as J-M Reef: Stillwater stands out as America's only significant producer of platinum and palladium.

Oil has also continues to be affected by changes in the US dollar.  For more, please visit http://www.crudeinvestingnews.com/ ^[5]