Palladium has today (23rd July) been officially recognised as a precious metal for the first time after being incorporated in the UK Hallmarking Act.

The white, corrosion-resistant metal has played an increasingly prominent role in the Chinese jewellery industry in recent years, spurred by rising gold and platinum prices.

This trend has intensified during the global financial crisis as consumers and manufacturers recognise palladium as a "credit crunch-beating metal", according to leading bullion dealer Johnson Matthey.

Since its first use in 1939, it has mainly been deployed as an alloy element which is capable of altering gold's natural yellow colour to make it appear similar to platinum.

However, its burgeoning role in the west should continue after Parliament decided to make hallmarking of palladium items weighing over 1g compulsory from 1st January 2010.

It has also emerged that the first piece to receive the hallmark in London is a 100mm dish featuring the design of a leopard's head and created by London-based platinumsmith Tom John.

"We are delighted to have officially hallmarked the first item of palladium in London with its new mark," said Dr Robert Organ, Deputy Warden of the Goldsmiths' Company Assay Office London, the body which issued the hallmark.

"Tom John's attractive dish will be added to the company's collection to be preserved for posterity."

The motion to include palladium in the act was originally proposed by Lord Drayson, the Minister of Science for the Department for Business, Innovation and Skills.

Speaking in Parliament, he explained that move was necessary because the role of palladium in the pgm industry is set to increase further in the coming years.

He said: "Palladium has not hitherto been prescribed by the Hallmarking Act because manufacturing difficulties led to high costs and low demand.

"These difficulties have now been overcome and the market for palladium articles is expected to grow considerably."

Furthermore, he noted that hallmarking would reduce the potential for fraud, which could be a risk given the metal's lower value in comparison to platinum and gold.

"A consumer may not be able to tell by eye the difference between articles made from palladium and those made from cheaper precious metals such as silver and white gold, or from base metals," he added.

"To protect consumers from fraud and counterfeiting, I propose that the Hallmarking Act should be applied to palladium."

The 500, 950 and 999 standards will be available for palladium hallmarking, but sources familiar with the market believe that the 950 mark will be the most popular among consumers.

Palladium was discovered in 1803 by English chemist and metallurgist William Hyde Wollaston, who named it after the asteroid Pallas, which was discovered two years earlier.

Sources:

PALLADIUM RECEIVES ITS OWN HALLMARK AND OFFICIAL STAMP OF APPROVAL (23/07/09)

UK Assay Offices Begin Palladium Hallmark Program (22/07/09)

Hallmarking Act 1973 (Application to Palladium) Order 2009 (15/07/09)

Hallmarking Act 1973 (Application to Palladium) Order 2009 (15/07/09)

Ÿ Adfero Ltd