Palladium: Urban Life Magazine Exclusive

Novell on LuxuryPalladium.com

The Novell company issued a press release this week about their Palladium wedding rings featured on the official website of Palladium Alliance International.http://www.blogger.com/img/gl.link.gif

Read the full release here.

PAI Site Launch on NJN & JCK

The story about PAI's trade site re-launch was picked up by National Jeweler and JCK online!

Stillwater Mining in the News

A Seeking Alpha article mentioning Stillwater Mining Company (SWC), the main sponsor of Palladium Alliance International.

Read "Seven Montana Stocks"

Comment: New trade website

"Wow! What a difference it makes to have a clean, easy to navigate website. I love what has been done to make the site user-friendly. Looking forward to getting comments, suggestions on what others would like to see."
- Dawn McCurtain, PAI Director of Marketing

Palladium Alliance Launches New Trade Site

Palladium Alliance International (PAI) announces the launch of its redesigned trade website, www.luxurypalladium.com. The site provides visitors with fresh content such as downloadable bench manuals and videos for those working in Palladium – The Now Metal™.

The new web portal, whose re-launch kicks off an education-focused phase of PAI’s marketing program, raises the bar for online jewelry marketing with the kind of high-end design and interactivity today’s savvy internet users demand.

The new website includes text-search capabilities, intuitive navigation, multimedia content, new product galleries, community forums, compatibility with various browsers and mobile devices, and a host of new Web 2.0 technologies. PAI’s new blog located at luxurypalladium.blogspot.com and Facebook fan page – called Palladium is Now! – are further connecting a whole new generation of fine jewelry lovers with the metal of choice for the 21st Century.

Users who sign up online for their free membership receive PAI’s White Light newsletter, promotional offers, automatic enrollment in exclusive contests, new retail training modules by Performance Concepts, and interest-focused PAI announcements. From trade events to technical updates, stay connected to Palladium on your own terms with PAI’s new personalized communications platform.

Log on today and learn why Palladium is the metal of choice for fine jewelry and watches. Whether you’re building in Palladium or offering it to your customers, PAI has the world’s best educational and promotional materials for this white, light, natural precious metal.

National Jeweler Retailer Hall of Fame 2008

The book is out - NJ's annual roundup of top retailers. Click here to view the online eBook of winners, with photos of top designs.

Seeking Alpha: Of Wars & Strategic Metals

An excerpt from a new article by Mark Anthony on Seeking Alpha. Anthony is a big proponent of Palladium and Stillwater Mining Co. Read the full article here.

OF WARS AND STRATEGIC METALS
by Mark Anthony

...Platinum is way better than gold, while palladium is better than platinum due to current price disparity. Unfortunately, physical palladium coins and bars are now extremely hard to find. If you like the PGM metals, consider buying the stocks of Stillwater Mining (SWC) and North American Palladium (PAL). They are the ONLY primary PGM metals mining companies outside South Africa and Russia. Russia, being the dominant palladium producer, can cut back export and boost the palladium price at any time, in their own interests. South Africa continues to struggle with a national electricity crisis which greatly impacts the output of its PGM mining industry...

JCK Jewelers Choice Awards

The 2009 JCK Jewelers Choice Awards are fast approaching. September 19 is the submission deadline, and this year the contest features a Palladium Jewelry category. Anyone designing in Palladium who wants exposure at one of the world's foremost trade summits should get involved. Click here to download the PDF entry form.

Platinum, Palladium Rise Alongside Oil Prices

(From Forbes.com via AP)

NEW YORK - Platinum and palladium prices rose on Wednesday as gains in the energy markets lured investors back into commodities. The rise in energy prices occurred as traders placed bets that Hurricane Gustav would disrupt oil production in the Gulf of Mexico. Platinum futures for October delivery rose $19.60 to settle at $1,440.70 an ounce on the New York Mercantile Exchange.

Palladium futures for December delivery rose $1.30 to settle at $289.60 an ounce. The dollar's mixed performance against other major currencies provided little direction for the precious metals market. Precious metals are often used as a hedge against a weakening dollar.

Copyright 2008 Associated Press. All rights reserved.

Palladium on CNBC

The anchorwoman's inability to pronounce "Palladium" aside, Platinum Group Metals received a nod on the national news network. Frank Holmes, CEO of U.S. Global Investors, explains:

Unknown Metals Video on MSN Money
(Windows compatible; MacOSX-Firefox compatible only)

Treat Yourself Tuesday! What's $1 million Get You? Hint: Not the Car

So TYM! was delayed by one day, sorry about that - it's worth the wait, though. This spectacularly outrageous piece could only come from Italian carmaker Bugatti. It really bends the mind to consider that the Veyron - Bugatti's crowning supercar achievement - rings up at $1.5 million, making it the most expensive CAR in the world. How on earth their Palladium pen can fetch $1 million is anyone's guess. Writing instument ethusiasts, the floor is yours.

Random Monday: Microsoft Palladium?

I'll keep digging around for a Treat Yourself Monday! bauble or bangle, but in the meantime, some interesting news from a branding perspective: Microsoft is trying to gain support for a next-generation security idea codenamed Palladium. As of today they've ceased using the project code name - it's been outed after all - and now simply call it the much less intriguing Next-Generation Secure Computing Base for Windows.

As a matter of branding, Platinum has a long history of being associated with high-end things: record sales, credit cards, etc. Palladium doesn't have this ground-level brand recognition yet, so it's interesting to see the ideas and situations companies consider the word "Palladium" representative of. For Microsoft, apparently, Palladium spells security.

Modern Jeweler: Private Label Metals

New article in Modern Jeweler talking about metals for jewelry under $500. Click to view article.

Treat Yourself Monday! Louis Vuitton

The new Louis Vuitton Damier Graphite manbag (via BagSnob).

Looking for the perfect gift for the man in your life? Look no further than the Damier Graphite from Louis Vuitton-- it's chic yet masculine and boasts a 120 year history in the world of fashion. A decade before the monogram was created, Georges Vuitton patented the checkered patterned design that has launched a thousand imitators but as with all things, there is nothing better than the original. Understated and elegant, the Graphite Damier is finished in smooth black leather and palladium hardware. Available at Louis Vuitton boutiques worldwide this weekend! Louis Vuitton also available online at eLUXURY.com.

New Campaign Pushes Palladium as Right-Now Metal

LINK TO ARTICLE AT NJN.COM
By Catherine Dayrit

Las Vegas - When designers and high-end retailers gathered poolside at the Wynn Las Vegas to hear pop singer Seal croon his famous line, "We're never gonna survive... unless we get a little crazy," the lyrics weren't the only entreaties aimed at the Couture show crowd.

Signs from Palladium Alliance International's (PAI) new branding campaign lined the stairways, surrounded the pool and flashed on a giant outdoor screen, declaring "Palladium is Now," "White, Light, Natural, Now" and "Do You Have the Metal?". It was all part of the first phase of branding for palladium, a precious member of the platinum metals group that, amid higher metals prices, has been embraced by a host of designers.

PAI, which formed just over two years ago to establish palladium as a distinctive metal, hired market research firm McKinsey to do extensive consumer research and chose DJS Advertising of Miami to create and execute the campaign.

"We know what the consumer reaction is going to be with the terms 'white,' 'light,' 'natural' and 'now' - all of that rich information about the DNA of the product," DJS President Deborah Scarpa says of the research. The result has been to-the-point messaging that has been hitting home.

"The retailer and manufacturer response was very tremendous," PAI Chairman John Stark says.

Scarpa says unique visitors to the PAI Web site multiplied from several thousand to 27,000 during and right after the launch.

Scott Kay began spreading the word on palladium three years ago when he led a JCK Show seminar on the topic. The brand's palladium bridal business in particular is doing phenomenally, he says.

"It's not an alternative, it's an opportunity," Kay says. "When you have something that's natural and is viewed as a precious resource, that's a great opportunity. You're really going to see it carve its way into the marketplace and take a large share from gold."

Designer Barry Kronen, new to palladium, has produced two palladium pieces so far and hopes PAI's messaging will resonate with the brand's customers.

"Direct is good, especially when you're working with consumers," Allison Pellegrino, Barry Kronen director of marketing and advertising, says of the campaign. "A lot of the fluff gets lots in translation anyway, so here there's nothing missing."

At about half the cost of gold, price often comes up as a reason a designer is test-driving the metal. But, PAI says, as with other jewelry products, palladium shouldn't be sold on price or compared to other metals.

"That's the point that we're trying to establish," Stark says. "It's not a metal that's in competition with platinum, or with white gold. Its position in the marketplace is as a luxury white metal."

Among its attributes is its purity and naturalness, Scarpa says, along with the fact that it is white and durable, yet lightweight.

"The main thing is that it's new and it's now," she says. "This is the metal for the 21st century."

PAI has already made an extensive foray into jewelry trade shows, and plans are in the works to hold a press conference and a national tour in conjunction with Conde Nast publications this fall to reach more retailers. In late August, PAI is aiming to launch a PAI membership program, allowing retailers exclusive access to marketing materials. Online initiatives will also be key to the campaign.

On the consumer level, ads that tag manufacturers and play up palladium's attributes are scheduled to run in luxury service magazines.

While the word about palladium is currently diffusing through the industry, insiders say the next step lies at the retail level.

"It's not only about advertising, it's education," says Patrick Hoffman, vice president of Ulysse Nardin, which at the moment produces four watch models in palladium. "It is up to us to educate the people in the stores about how to sell palladium."

PAI Awards Top Palladium Seller

Billings, Mont. — Palladium Alliance International (PAI) has awarded Ryan Muckelroy an all-expense-paid trip to Stillwater Mining Co. for selling the most palladium jewelry at retail jeweler Robbins Brothers.

Muckelroy clinched first prize after selling nearly $18,000 of palladium jewelry.

"The executives at Robbins Brothers have been behind palladium for years, since Scott Kay introduced it into our product line," Muckelroy said in a media release. "It's easy to sell in my market. It's beautiful, long-lasting, and it just makes sense to our customers."

In early July, Muckelroy and his wife, Amber, toured Stillwater's East Boulder Mine. Stillwater is a Sierra Club-approved "green" mine and home of the world's highest-grade palladium ore.

"It was an incredible experience...the tour helped me appreciate the work that goes into producing enough metal for one little ring," Muckelroy said. "I've told my whole team about the process, and it really increased their passion for selling palladium."

Joseph Schubach Jewelers 'Jewelry of Your Dreams' Design Contest

(Via MarketWatch)

Click above to read full article or visit Schubach's website for details




Joseph Schubach Jewelers has kicked off voting for the first ever Custom Jewelry Design Contest, and the winning designer will receive a $2,000 prize toward his or her custom jewelry piece. Votes can be cast on the jeweler's website through August 4th.

"We've demonstrated that custom-made jewelry is easily attainable for most individuals, sometimes costing only a few hundred dollars," Joseph Schubach said. "Using natural diamonds -- or diamond alternatives such as clarity enhanced diamonds,
moissanite or Gemesis created diamonds -- and metals such as platinum and palladium -- we are able to create stunning items at a fraction of the cost of most jewelry design houses."

Philip Stein unveils line of Swiss-made watches

(Via National Jeweler)




Miami—U.S.-based watch brand Philip Stein has created its first-ever line of fine-crafted Swiss-made watches.

Dubbed the "Prestige Collection," the line contains Multiple Frequency Technology, a new technology that the brand says offers wearers benefits such as a better night's sleep, quicker relief from jetlag and workouts, and less stress overall, to name a few.


Since Philip Stein's founding in 2001 by Will Stein, the brand has forged a niche in the area of mind-body wellness through frequency-based technologies in luxury products.

However, the brand says that the Multiple Frequency Technology, combined with the Swiss-made mechanisms in the Prestige Collection, offer up the precision demanded by discriminate watch buyers.

The Prestige Collection is available in stores this month.

Philip Stein Adds Palladium to Harmony Collection

This one-of-a-king prototype generously lent to PAI is a phenomenal example of Philip Stein's upcoming foray into Palladium. The legendary watchmaker is yet another company embracing The Now Metal™ as the white metal of the future.

Platinum Metals Review (July 08)

Alright, here it is: the full-text edition of Platinum Metals Review, which you've been awaiting with bated breath! Topics include "A New Palladium-Based Catalyst for Methanol Steam Reforming in a Miniature Fuel Cell Power Source" and the exciting sequel "Practical New Strategies for Immobilising Ruthenium Alkylidene Complexes: Part II"... check it out.

Palladium Demand Up Despite Industry Woes

iAfrica reports Anglo Platinum's shaky outlook on the Platinum Group Metals (PGMs) market, but continued growth in demand for Palladium for jewelry applications.

Treat Yourself Monday! Swarovski

The legendary Swarovski brand has several accessories featuring Palladium hardware. Have a look.



















"Fancy Bag" $600 (details)


















"Signature Flossy Large Wallet" $340 (details)

GFMS Releases Quartery 3-Year Forecast for PGMs

Click for PDF overview

GFMS, the world's foremost precious metals consultancy, specializing in research into the global gold, silver, platinum and palladium markets, released another report today. They're an excellent resource for anyone interested in the real market mechanics of metals and mining, however their work is pricey: An annual subscription to their 4-volume report package will set you back around £5,000.

Palladium Experts at JA Summer Show

Via National Jeweler

Palladium Alliance International's (PAI) technical experts will discuss best practices for casting, fabricating and repairing palladium jewelry at the upcoming JA New York Summer Show.

Casting consultant Linus Drogs and bench fabrication consultant Chris Ploof will lead the seminar on Sunday, July 27, from 4:14 p.m.-5:30 p.m.

Attendees will learn easy methods for mastering palladium's unique characteristics and ensure that their stores and service departments have the confidence and knowledge to begin profiting from the metal.

The seminar will be held at the JA Retail Learning Center in the Jacob K. Javits Convention Center.

For more information, call (877) 473-7873 or visit PAI online at LuxuryPalladium.com.

Palladium Alliance User Forum

Have you visited PAI's User Forum? Check it out for up-to-date discussions on working with Palladium. Don't see your question answered? Just ask!

Stillwater Mining Aids River Weed Project

Not Palladium news, not jewelry industry news, not even mining... but Stillwater Mining Co., the Sierra Club-approved green mine in Billings, Montana, that supports Palladium Alliance International, was written up in the Billings Gazette today for their support of a cooperative weed control project on the upper Stillwater River.

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Weed effort shows signs of progress
By LINDA HALSTEAD-ACHARYA
Of The Gazette Staff

NYE - What a difference a year makes. That was the report from Noel Keogh, the Nye rancher who along with several others has spearheaded a cooperative weed control project on the upper Stillwater River.

Last summer marked the first year of a three-year grant aimed at controlling noxious weeds from the Woodbine Campground to the Nye School. This summer marked a noticeable difference.

"We covered the same land," Keogh said. "Only this year, there was only about 5 percent of the weeds."

......(Click to read the full article)

NJN: Las Vegas Market Week

A recap of early June jewelry trade week in Las Vegas, and the industry's demand for Palladium as the white jewelry metal of the future in the face of a rocky economic forecast. Stuller, a major Palladium alloy producer and jewelry manufacturer based in Louisiana, had a phenomenal run this year. (Reprinted from National Jeweler.)

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Amid lighter traffic, Vegas buyers walk a careful line
By Michelle Graff

LAS VEGAS - High metal prices, skyrocketing fuel costs and tightening consumer pocketbooks had jewelers who attended JCK Las Vegas watching their spending.

But they, at least, made it to the show. Though exact attendance figures were not available at press time, attendees and vendors at the show noticed that traffic was slow at what Las Vegas is normally one of the most bustling events of the year.

"It was dead," said retailer Jeff Milstein of Wyatt Austin Jewelers in Schaumburg, Ill., who has been attending JCK Las Vegas since it launched in 1992. "It was absolutely, positively dead."

Exhibitor Amy Han of Honolulu-based manufacturer and retailer Maui Divers Jewelry noticed the same.

"Traffic was really down," she said, noting Maui had booked zero appointments for the last two days of the show, which was held May 30-June 3 at the Sands Expo Center and the Venetian hotel.

According to JCK Events, the show hosted retailers from 72 countries, plus 3,100 manufacturers and suppliers, figures that were comparable to the number of exhibitors who attended in 2007. JCK Events stated that pre-registration also was comparable to 2007.

JCK Events Group Vice President Dave Bonaparte said overall, exhibitors reported "very positive results" from JCK Las Vegas 2008.

"Although retailers and exhibitors arrived at the show with low expectations due to economic conditions, we are thrilled to report that so many of our exhibitors and attendees were able to connect, do business and make this one of the most successful jewelry events of the year," he said.

Retailers walking the show in its first few days told National Jeweler they were prepared to stock up, but were doing so with an air of caution.

"I'm always open to buy product that moves," Milstein said.

He said he replenished his stock of diamond engagement rings and bought men's wedding bands and inexpensive men's stainless steel jewelry.

In total, Milatein said, he spent about 50 percent less than last year, but it wasn't because there was a surplus of inventory from the slow holiday season. The jeweler actually didn't buy heavy going into Christmas because he knew it wasn't going to be a busy season.

"We knew by November of last year that December was not going to be a banner year," he said. "We knew ... things were just not the same."

Art Caldwell at Merhnan's Diamonds and Fine Jewelry in Knoxville, Tenn., said his company was buying the same amount in Las Vegas as last year, but exercising caution. He was sticking to buying loose diamonds and bridal pieces, necessities for a store that is heavily reliant on bridal. It had taken Markman's until the JCK show in June to sell off its excess Christmas inventory, Caldwell said.

"Times are tough," he said. "We're being very, very careful."

If business was slow for some, other exhibitors bucked the trend and said they were doing blockbuster business. Stuller executives reported a record year, citing finished jewelry merchandise mix that is more fashion-forward than ever for the company.

In JCK's Italian pavilion, buyers at Rebecca, which sells jewelry made of goldplated bronze, silver, steel and hydrothermally created colored gemstones, couldn't seem to get enough of the pieces that retail for $200 to $1,800.

"We wrote up orders in one day that surpassed what we did all of last year," said Michael Pucci, director of sales and marketing for distributor Testi USA. "We're the luxury alternative for solid gold right now."

Jeff Guenther, general manager at New England's Springer's Jewelers stores, said his open-to-buy was 50 percent more than last year. He was looking to add another luxury brand to his stores, which carry Kwiat and Roberto Coin, among others.

Springer's has stores in the Maine cities of Portland and Bath, and one in Portsmouth, N.H. Although its clientele, wealthy New Englanders aged 40 to 70, are mostly shielded from the recent economic downturn, the general economic uncertainty prompted cautious buying, Guenther said.

Bowen Jewelry Co. in Lynchburg, Va., had a record day while owner Biff Bowen was strolling the JCK show. He said business is good for him this year, but he is still being conservative with his buying, mimicking consumers.

"Customers are being smart," he said. "They want value. They're not just throwing their money at you."

He said he is focusing on replenishing his stock while making "tentative notes" about new products. One new item Bowen would be willing to invest in is a line of fashion palladium jewelry.

"That's something I've got an eye out for," he said.

Palladium, at a per-ounce price ranging from $363 to $590 from Jan. 1 through mid- June, is a lower-cost alternative to white gold and platinum.

The per-ounce price of gold soared to more than $1,020 in March and, by mid-June, was at $874 an ounce, according to metal price tracker Kitco.com. Platinum peaked at almost $2,300 per ounce in March and was at $2,020 per ounce in mid-June.

Randall Janis of Heart of Gold Jewelers in Redding, Calif., calls paliadium "a great white gold substitute." He and his wife, Zan, both expressed an interest in palladium pieces, as well as micropave diamond jewelry pieces.

"It has a lot of presence to it," Zan Janis said of the tiny diamond-speckled pieces.

Another trend she noticed at JCK was organic-looking designs with a lot of open metalwork and smaller diamonds instead of a lot of "bling."

Randall Janis said the jeweler's open-to-buy is about 30 percent less than last year. His store is fairly well stocked and the owners are expecting an average year.

Randall Janis said he considers the Las Vegas show, which is a short flight from his northern California jewelry store, more of a fact-finding mission for new products and technologies. In addition to palladium and micropave, lab-grown Gemesis colored diamonds also caught his eye this year. He said he plans to buy the stones from Gemesis, which added pink to its color palette during the show.

Han, of Maui Divers, a chain of about 60 stores with locations in Hawaii, Guam and California, said the chain is buying "much less" than in previous years.

"We are really watching our spending," she said, ticking off higher metal prices and rising energy costs as factors slowing consumer spending.

"Everybody's working with tight budgets," she said.

CVSTOS Challenge QP-S

Sometimes a great Palladium watch design slips by even our watchful eyes. The limited-edition CVSTOS Challenge QP-S is constructed of steel, Palladium and red gold, and retails for around $25,000.
Click here for details

iW: The Other White Metal

BIG feature on Palladium watches in the most recent International Watch (iW).

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(click each thumbnail to view full spreads)

Parmigiani Pershing Chronograph

From Europa Star:


Parmigiani and Pershing Yachts have formed a partnership and the result is the creation of the first range of Pershing aquatic sports watches. The Pershing collection comprises two different lines: The limited edition ‘one-one-five’, available in 18 carat rose gold and 950 palladium, created in honour of the biggest and most prestigious Pershing vessel, measuring 115 feet (35 metres), and the non-limited Pershing Chronographs collection, available in steel with four dial variants.

Seeking Alpha: Best Safe-Haven Investments

Mark Anthony over at Seeking Alpha wrote another (very long) article on his favorite commodities invetments. He's a long-time champion of Palladium and Stillwater Mining Company, and while this one turns into a tome, it's worth reading his analysis of Stillwater.

Read the full-text here

JCK: Alternative Metals Show Their Mettle

Dawn McCurtain, Director of Marketing at Palladium Alliance International, recently spoke with JCK about Palladium. The article is excellent and covers a lot of ground about this white, light, natural precious metal.

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By Rob Bates, Senior Editor
JCK-Jewelers Circular Keystone, 7/1/2008

It's clear these are good times for alternative metals. It's also clear that not everyone likes that term. “I prefer contemporary metals,” says Ed Rosenberg, the founder of Spectore Corp., in Deerfield Beach, Fla. “The industry's presented these metals wrong. They called them alternative. But alternative to what? You could say gold is an alternative to platinum.”

.....Read the full article

MJSA: The Year in Palladium

THE YEAR IN PALLADIUM
(Part of a longer a article, read it here)

With a 3.5 percent increase in demand to 6.84 million oz. and a supply increase of 8 percent to 8.59 million oz., the palladium market was in surplus by 1.75 million oz. in 2007, according to Johnson Matthey's Platinum 2008. The following data are from the report:

Palladium supplies rose by 8 percent to 8.59 million oz. in 2007. In South Africa, increased sales from refined stocks augmented mine production to bring supplies to 2.77 million oz., just 5,000 oz. below 2006 levels. Russia's primary production declined slightly to around 3.05 million oz. Johnson Matthey believes 1.29 million oz. of Russian State stock shipped in December 2006 were not sold until 2007 and therefore includes these in its estimates for 2007 supplies. Palladium price climbed 11 percent in 2007, ending the year at $365 per oz. The price increase was driven by movements in the dollar and gold and platinum prices, rather than by market fundamentals. Investor interest remained key to palladium's strength. Overall palladium demand grew by 3.5 percent to 6.84 million oz. in 2007, but global jewelry demand for the metal, excluding purchases of jewelry scrap, fell 25.6 percent, from 995,000 oz. in 2006 to a net figure of 740,000 oz. in 2007. Demand from the Chinese market was 500,000 oz., down from 760,000 oz. in 2006, accounting for much of the worldwide decline in jewelry demand.

In China, the effects of the rapid early introduction of palladium jewelry were still evident in the market. The supply chain may have been overstocked in some places, and large quantities of unsold Pd95O pieces were returned for refining and re-manufactured into higher purity Pd990 in 2007, depressing demand for new metal. The relatively small markets of Eurohttp://www.blogger.com/img/gl.link.gifpe and North America saw some growth, though: Demand there increased to a combined total of 95,000 oz. The North American market for palladium jewelry remains in its early stages, though manufacturers and retailers are working to develop it. The high price differential between palladium and platinum and gold has encouraged manufacturers to start working with the metal. On the consumer side, substantial price increases for diamonds are pressuring bridal ring budgets, and some couples have moved to less expensive materials, including palladium, to save money on men's rings. These trends helped drive palladium demand higher in North America, to 50,000 oz. in 2007.

A sluggish economy and competition for disposable income pressured jewelry sales in Japan, forcing palladium demand down by 7.7 percent in 2007. Almost no palladium-only jewelry is sold in Japan, but jewelry manufacturers there bought 120,000 oz. of palladium for use as an alloying agent in white gold and platinum alloys.


2008 FORECAST

Palladium supplies from mining are likely to fall in 2008 compared to 2007. Although Russian production isn't expected to change much, South African metal sales will be dented by the countrywide power supply problems experienced in the first quarter and by a range of other challenges racing the mining industry. Johnson Matthey expects overall palladium demand to grow in 2008. The outlook for global palladium jewelry demand suggests some growth following strong manufacturer purchases in the first quarter of 2008. The March 2008 announcement by the major PGM producers of a concerted marketing campaign for palladium jewelry may drive consumer purchasing and demand higher. The supply and demand forecaset for 2008 suggests a tightening of the market and the potential for price increases. If the platinum price performs strongly in the next six months, palladium is likely to benefit and could trade as high as $575 within the same period. However, investor behavior remains absolutely key. With many millions of ounces of palladium in investor hands, any widespread sell-off, whether driven by poor stock market performance or a U.S. recession, would force the price down. Johnson Matthey expects a floor price no lower than $400 in the coming six months.

MJSA: Palladium Plating Solutions

This comes by way of MJSA Journal. I've reprinted the second half of the article only because it's relevant to Palladium.

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SOLUTIONS
Considering the skyrocketing prices of precious metals, is plating an option for your jewelry line

by Rachel V. Katz

WHITE ON WHITE
As rhodium prices creep ever closer to $10,000 an ounce, rhodium plating has become an expensive endeavor. With the popularity of white metals still in full swing, jewelers have had little wiggle room if they want to continue using rhodium plating to enhance the color and durability of their white gold rings. Enter palladium plating. With this PGM at around $450 an ounce, palladium plating is becoming a way to offset some of the expense.

"Its becoming [more commonly used] because the price of rhodium has increased so much," says Massimo Poliero, president of Legor Group in Bressanvido, Italy, which is offering a palladium plating solution for jewelry.

Palladium plating has been used widely in other industries, but its grayer appearance has kept demand in check among jewelers. However, as the increasing price of rhodium has sparked interest among jewelry makers for a replacement, researchers are developing palladium solutions that offer brighter, whiter finishes and are more user-friendly for the small shop.

"It's something that's pretty new for the bench jeweler to be able to do easily in our studio," says Chris Ploof, owner of Chris Ploof Studio in Rudland, Massachusetts, and a technical consultant to the Palladium Alliance International (PAI).

Rather than replacing rhodium, palladium plating can also be used to pre-plate rings and other items, which can then be finished with a rhodium flash. This cuts a jeweler's rhodium need significantly, says Darrell Warren, vice president of metals at Stuller Inc, in Lafayette, Louisiana: "By using the palladium plating solution, they can reduce their rhodium cost by 50 to 60 percent. They've got a bright, white finish that they start with, and then they can reduce to just a flash of rhodium to get the final high luster."

Warren says that interest in the new tabletop palladium plating kit that Stuller is distributing to jewelry makers, which was developed by Jack Lopez of Technology Without Limits in West Warwick, Rhode Island, has been high since its launch this past winter.

"The greatest percentage of people who are buying the palladium solution are doing it to [save money]," says Warren. "They still may need to rhodium plate, but it's going to drastically reduce their costs."

Demand from jewelry makers is likely to spur continued research. "The industry is starving for a rhodium replacement," says Joseph Lipsitz, co-owner of Cohler Enterprises in Baltimore, which also offers a palladium plating solution designed for jewelers. "Rhodium is very unique, and irreplaceable. Therefore, let's save money on it by using a pre-plate."

Matching the durability of rhodium is also an issue, which is part of the reason why Lipsitz sees the potential for palladium plating outside the bridal jewelry sector. He is currently seeing demand for palladium as a substitute among costume jewelry makers in Thailand and some manufacturers of earrings, which get less wear and tear than rings.

"Another benefit of palladium is that you can apply a thicker layer of plating than you can with rhodium," says Linus Drogs, owner of Au Enterprises in Berkley, Michigan, and the casting consultant to PAI. "You can only apply a layer of rhodium that is less than 1 micron in thickness because if you go over that the rhodium darkens, shifting from white to gray to black. People sometimes falsely attribute this to contaminated rhodium solution; however, it is often the result of too thick of a plate. The advantage of palladium is that you can apply a thickness of several microns without experiencing a color shift. We are currently conducting durability studies for palladium plating."

Just how quickly palladium gains additional traction may depend on where the market goes. But for now, the interest in plating and the quest for new, more cost-effective rhodium substitutes is likely to heat up. "There's an unsettled shift in materials in the U.S. plating industry," Vinson says. "We're getting into all kinds of strategy discussions."

Seeking Alpha: Good Ole Day for Pallladium?

Interesting article today in Seeking Alpha (links to original). Brad Zigler looks at where Palladium was and how supply may affect its price by next summer. The article also mentions a positive development at Stillwater Mining Co., the main mine behind Palladium Alliance International: Labor negotiations have been settled.

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By Brad Zigler

In times of market stress, investors often catch themselves wistfully remembering the "good ole days." That is, between bouts of frantic selling.

I found myself looking backward, too, when a report came over the transom about a new labor contract being forged at Stillwater Mining Co.'s (NYSE: SWC) East Boulder operation.

We'd looked at Stillwater back in December (see "Platinum's Poorer Relation: Palladium"), and again in February (see "Following The Other White Metal") when platinum group metals were on a tear.

Palladium, it turns out, peaked on February 28 at $593.70 an ounce, basis the NYMEX September contract. The September delivery settled at $452 Thursday.

Stillwater's stock took a similar roller coaster ride. Topping out over $22 a share in early March, Stillwater fell below $10 when labor talks stalled.

There'd been no strike at the company's Montana mine, though negotiations between Stillwater and the USW International Union, which represents mine workers, went to the wire. In fact, talks went past the wire. The expiring labor agreement ran out at the end of June, but the two sides agreed to extend talks another couple of weeks.














Stillwater's stock wobbled a lot as talks moved into the terminal phase, first swooning, then finding buyers at ten bucks. Stillwater shares ended Thursday's session at $10.61, after a two-day rally that boosted the stock 8%.

Fundamentals for palladium, says analyst Shawn Hackett of Hackett Financial Advisors, are "very bullish." Recession fears, he admits, have kept the metal's price in check, trumping "the positive implications for a massive shift in substitution demand for catalytic converters and jewelry," says Hackett.

Declines in Russian production and the drawdown in stockpiles should also shape up as bullish factors. Hackett's looking at a target over $800 an ounce by next summer if Russian supplies hold out and stretch to $1,000 an ounce if stocks are completely depleted.

Gee. That'll make these the good ole days.

Palladium Alliance at JA Summer Show

Casting Consultant Linus Drogs and Bench Consultant Chris Ploof, the tech wizards for Palladium Alliance International, will present at the upcoming JA Summer Show in New York City.

The Palladium Bench 101:
A Jeweler’s Guide to Palladium Processes and Profitability
When: July 27, 2008, 4:15 – 5:30 PM
Where: JA Retail Learning Center, Javitz Convention Center


From the program:
"Palladium, now more than ever, is the right white metal choice for jewelers looking to increase profitability and open a new world of products to their customers. For the bench jeweler, palladium presents some unique challenges, and knowledge of how to work with palladium is critical to customer satisfaction and increased sales.

Attend this seminar and you’ll learn about Palladium’s unique characteristics and discover how easy it is to begin fabricating, casting and repairing palladium jewelry at your bench. The processes, procedures and tips from this seminar will ensure that your store and service department have the confidence and knowledge to begin profiting from Palladium."

Click for PDF program of all JA New York Seminars

Johnson Matthey Platinum Metals Review (July 2008)

A bit nerdy, but it is Monday. A new issue of Johnson Matthey's Platinum Metals Review is up on the web. JM is the world's largest assayer & refiner; they're the guys who make those beautiful Palladium alloy blocks that jewelers turn into Palladium rings, watches, necklaces, cuffs and more.

Some of the topics are the company's new sustainability initiatives, new Palladium-based catalysts, and other fun stuff. Full text available soon, so for now you'll have to do with a summary.

Palladium Alloy Used in New Membrane

From Platinum Today, a publication by assayer & refiner Johnson Matthey, is an interesting little science tidbit about Palladium:

"Nippon Seisen has developed a separation membrane, made from palladium, for extracting high-purity hydrogen from natural gas.

The membrane is constructed from a 15-micron-thick film of a palladium alloy that is welded into a smooth cylinder shape.

When it comes into contact with hydrogen, the molecule splits into separate hydrogen atoms which can then pass through the spaces between the alloy.

As a result, the new technology is able to achieve a yield of more than 99.9999 per cent pure hydrogen.

No special equipment is necessary because hydrogen is the only substance that can pass through the membrane, allowing machinery using hydrogen to be designed cheaper and smaller.

The technology could be used in a range of devices that could hit the market in 2009.

Nippon Seisen is expected to develop it for use in fuel cells for cars and homes."

Link to original source via PT

Palladium: One Hot Commodity

A little business, a little pleasure is what you get this morning. On the business end, demand for Palladium and Stillwater Mining Company (the Montana mine that supports Palladium Alliance International) are discussed in a Seeking Alpha series called "The Brightest Stars in the Commodities Boom" ... Mark Anthony is one of those writers heavily invested in the companies under discussion, so he's very enthusiastic, but I think he's usually on point.

Dozens of newspapers this week carried an AP article on catalytic convertor theft. The traces of Palladium and Platinum they contain are valuable at the scrap yard. More interesting, however, are the measures some buyers are taking to insulate themselves from trouble.

And now for the pleasure... the beautiful Ulysse Nardin Macho Palladium 950, made completely of pure Palladium. On the wrist it feels formidable, and its shine is outrageous - just a stunning watch. Worth every penny of its $30,000 retail price.