Like other precious metals, palladium may be used as an investment. Palladium price reached a peak of US$1,100 per troy ounce driven mainly on speculation of the catalytic converter demand from in the automobile industry. It subsequently fell to US$145 in April, 2003. Palladium prices recently rose to about $375 per troy ounce, which is still historically low.[citation needed]

Recent years' palladium surplus condition was caused by the Russian government selling off government stockpiles built up during the Soviet Era, at a pace of about 1.6 to 2 million ounces a year. The amount and status of this stockpile is kept as a state secret. The Russian stockpile sales over the years have been absorbed by strong investment demand from speculators who believe that once the Russian stockpile is exhausted, the palladium price should spike up significantly.

The Russian stockpile sales over the years have been absorbed by strong investment demand from speculators who believe that once the Russian stockpile is exhausted, the palladium price should spike up significantly.