[Asia Economy Reporter Park Hyungsoo] ITCEN announced on the 18th that the trading of palladium by its affiliate, Korea Gold Exchange Digital Asset, has surged following the Russia-Ukraine conflict.
The transaction value of this year's e-palladium on 'Sengold,' provided by Korea Gold Exchange Digital Asset, has exceeded 100 billion KRW. This is more than six times the total transaction value of domestically listed palladium ETFs. Palladium is a rare metal belonging to the platinum group, with over 40% of the world's production coming from Russia. As the armed conflict between Ukraine and Russia prolongs, volatility in raw material prices has increased, leading to a rise in investment.
Palladium ETFs have shown a 50% return over three months and recorded the highest year-to-date return among exchange-traded funds as of March 7, 2022, causing unexpected developments in the commodity ETF and exchange-traded note (ETN) markets.
As awareness of the risks associated with commodity ETF and ETN investments grows, Korea Gold Exchange believes that investments based on physical assets are gaining popularity. When the international palladium price surged about 14% on the 7th, the domestically listed palladium futures inverse product showed a divergence rate of over 2% compared to overseas ETFs.
A representative from Korea Gold Exchange Digital Asset explained, "Sengold lowers risk from divergence by linking to real-time international prices and exchange rates, and enhances stability by storing 100% of the assets purchased by investors in physical form." They added, "We provide trading services for four metals?gold, silver, platinum, and palladium?24 hours a day on weekdays."
Kim Jongin, CEO of Korea Gold Exchange Digital Asset, introduced, "The e-palladium trading on Sengold has increased by 550% within four months of the product launch," and said, "By removing complex factors and improving trading convenience, it has received positive responses from 650,000 members."
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