Palladium as an investment
Palladium as an investment is much like investments in other precious metals. Global palladium sales were 8.84 million ounces in 2017. 86% of the global palladium production was used in the manufacturing of automotive catalytic converters, followed by industrial and investment usages. Palladium is a by-product of metals such as nickel or copper, since the 1980s, its major commercial application has been in the automotive industry. More than 75% of global platinum and 40% of palladium are mined in South Africa. Russia's mining company, Norilsk Nickel, produces another 44% of palladium, with US and Canada-based mines producing most of the rest; the price for palladium reached an all time high of $1,271.80 per Ounce on December 13th 2018 driven on speculation of the catalytic converter demand from the automobile industry. Palladium is traded in the spot market with the code "XPD"; when settled in USD, the code is "XPDUSD". A surplus of the metal was caused by the Russian government selling stockpiles from the Soviet Era, at a rate of about 1.6 to 2 million ounces a year.
The amount and status of this stockpile are a state secret. Norilsk Nickel, palladium powder and ingots. North American Palladium, Canada's largest producer of palladium operating the Lac des Iles palladium mine near Thunder Bay, Ontario. Stillwater Mining, a major North American palladium miner in Montana. ETFS Physical Palladium is backed by allocated palladium bullion and was the world's first palladium ETF, it is listed on the London Stock Exchange as PHPD, Xetra Trading System and Milan. ETFS Physical Palladium Shares is an ETF traded on the New York Stock Exchange. A traditional way of investing in palladium is buying bullion bars made of palladium. Available palladium coins include the Canadian Maple Leaf, the Chinese Panda, the American Palladium Eagle; the liquidity of direct palladium bullion investment is poorer than that of gold and silver because there is low circulation of palladium coins and a wider spread between buying and selling price. Chartered Alternative Investment Analyst Alternative investment Traditional investments Diamonds as an investment Gold as an investment Platinum as an investment Silver as an investment London Platinum and Palladium Market
Economy of the United Kingdom
The economy of the United Kingdom is developed and market-orientated. It is the fifth-largest national economy in the world measured by nominal gross domestic product, ninth-largest by purchasing power parity, twenty second-largest by GDP per capita, comprising 3.5% of world GDP. In 2016, the UK was the tenth-largest goods exporter in the world and the fifth-largest goods importer, it had the second-largest inward foreign direct investment, the third-largest outward foreign direct investment. The UK is one of the most globalised economies, it is composed of England, Scotland and Northern Ireland; the service sector dominates, contributing around 80% of GDP. Britain's aerospace industry is the second-largest national aerospace industry, its pharmaceutical industry, the tenth-largest in the world, plays an important role in the economy. Of the world's 500 largest companies, 26 are headquartered in the UK; the economy is boosted by North Sea gas production. There are significant regional variations in prosperity, with South East England and North East Scotland being the richest areas per capita.
The size of London's economy makes it the largest city by GDP in Europe. In the 18th century the UK was the first country to industrialise, during the 19th century it had a dominant role in the global economy, accounting for 9.1% of the world's GDP in 1870. The Second Industrial Revolution was taking place in the United States and the German Empire; the costs of fighting World War I and World War II further weakened the UK's relative position. In the 21st century, the UK remains a great power with the ability to project power and influence around the world. Government involvement is exercised by Her Majesty's Treasury, headed by the Chancellor of the Exchequer, the Department for Business and Industrial Strategy. Since 1979 management of the economy has followed a broadly laissez-faire approach; the Bank of England is the UK's central bank, since 1997 its Monetary Policy Committee has been responsible for setting interest rates, quantitative easing, forward guidance. The currency of the UK is the pound sterling, the world's fourth-largest reserve currency after the United States Dollar, the Euro and the Japanese Yen, is one of the 10 most-valued currencies in the world.
The UK is a member of the Commonwealth, the European Union, the G7, the G20, the International Monetary Fund, the Organisation for Security and Co-operation in Europe, the World Bank, the World Trade Organization, Asian Infrastructure Investment Bank and the United Nations. After the Second World War, a new Labour government nationalised the Bank of England, civil aviation, telephone networks, gas and the coal and steel industries, affecting 2.3 million workers. Post-war, the United Kingdom enjoyed a long period without a major recession; the annual rate of growth between 1960 and 1973 averaged 2.9%, although this figure was far behind other European countries such as France, West Germany and Italy. Deindustrialisation meant the closure of operations in mining, heavy industry, manufacturing, resulting in the loss of paid working-class jobs; the UK's share of manufacturing output had risen from 9.5% in 1830 during the Industrial Revolution to 22.9% in the 1870s. It fell to 13.6% by 1913, 10.7% by 1938, 4.9% by 1973.
Overseas competition, lack of innovation, trade unionism, the welfare state, loss of the British Empire, cultural attitudes have all been put forward as explanations. It reached crisis point in the 1970s against the backdrop of a worldwide energy crisis, high inflation, a dramatic influx of low-cost manufactured goods from Asia. During the 1973 oil crisis, the 1973–74 stock market crash, the secondary banking crisis of 1973–75, the British economy fell into the 1973–75 recession and the government of Edward Heath was ousted by the Labour Party under Harold Wilson, which had governed from 1964 to 1970. Wilson formed a minority government in March 1974 after the general election on 28 February ended in a hung parliament. Wilson secured a three-seat overall majority in a second election in October that year; the UK recorded weaker growth than many other European nations in the 1970s. In 1976, the UK was forced to apply for a loan of £2.3 billion from the International Monetary Fund. Denis Healey Chancellor of the Exchequer, was required to implement public spending cuts and other economic reforms in order to secure the loan, for a while the British economy improved, with growth of 4.3% in early 1979.
However, following the Winter of Discontent, when the UK was hit by numerous public sector strikes, the government of James Callaghan lost a vote of no confidence in March 1979. This triggered the general election on 3 May 1979 which resulted in Margaret Thatcher's Conservative Party forming a new government. A new period of neo-liberal economics began with this election. During the 1980s, many state-owned industries and utilities were privatised, taxes cut, trade union reforms passed and markets deregulated. GDP fell by 5.9% but growth subsequently returned and rose to an annual rate of 5% at its
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government's banker, still one of the bankers for the Government of the United Kingdom, it is the world's eighth-oldest bank, it was owned by stockholders from its foundation in 1694 until it was nationalised in 1946. The Bank became an independent public organisation in 1998, wholly owned by the Treasury Solicitor on behalf of the government, but with independence in setting monetary policy; the Bank is one of eight banks authorised to issue banknotes in the United Kingdom, has a monopoly on the issue of banknotes in England and Wales and regulates the issue of banknotes by commercial banks in Scotland and Northern Ireland. The Bank's Monetary Policy Committee has a devolved responsibility for managing monetary policy; the Treasury has reserve powers to give orders to the committee "if they are required in the public interest and by extreme economic circumstances", but such orders must be endorsed by Parliament within 28 days.
The Bank's Financial Policy Committee held its first meeting in June 2011 as a macroprudential regulator to oversee regulation of the UK's financial sector. The Bank's headquarters have been in London's main financial district, the City of London, on Threadneedle Street, since 1734, it is sometimes known as The Old Lady of Threadneedle Street, a name taken from a satirical cartoon by James Gillray in 1797. The road junction outside is known as Bank junction; as a regulator and central bank, the Bank of England has not offered consumer banking services for many years, but it still does manage some public-facing services such as exchanging superseded bank notes. Until 2016, the bank provided personal banking services as a privilege for employees. England's crushing defeat by France, the dominant naval power, in naval engagements culminating in the 1690 Battle of Beachy Head, became the catalyst for England rebuilding itself as a global power. England had no choice. No public funds were available, the credit of William III's government was so low in London that it was impossible for it to borrow the £1,200,000 that the government wanted.
To induce subscription to the loan, the subscribers were to be incorporated by the name of the Governor and Company of the Bank of England. The Bank was given exclusive possession of the government's balances, was the only limited-liability corporation allowed to issue bank notes; the lenders would give the government cash and issue notes against the government bonds, which can be lent again. The £1.2m was raised in 12 days. As a side effect, the huge industrial effort needed, including establishing ironworks to make more nails and advances in agriculture feeding the quadrupled strength of the navy, started to transform the economy; this helped the new Kingdom of Great Britain – England and Scotland were formally united in 1707 – to become powerful. The power of the navy made Britain the dominant world power in the late 18th and early 19th centuries; the establishment of the bank was devised by Charles Montagu, 1st Earl of Halifax, in 1694. The plan of 1691, proposed by William Paterson three years before, had not been acted upon.
58 years earlier, in 1636, Financier to the king, Philip Burlamachi, had proposed the same idea in a letter addressed to Sir Francis Windebank. He proposed a loan of £1.2m to the government. The royal charter was granted on 27 July through the passage of the Tonnage Act 1694. Public finances were in such dire condition at the time that the terms of the loan were that it was to be serviced at a rate of 8% per annum, there was a service charge of £4,000 per annum for the management of the loan; the first governor was Sir John Houblon, depicted in the £50 note issued in 1994. The charter was renewed in 1742, 1764, 1781; the Bank's original home was in Walbrook, a street in the City of London, where during reconstruction in 1954 archaeologists found the remains of a Roman temple of Mithras. The Bank moved to its current location in Threadneedle Street in 1734, thereafter acquired neighbouring land to create the site necessary for erecting the Bank's original home at this location, under the direction of its chief architect Sir John Soane, between 1790 and 1827.
When the idea and reality of the national debt came about during the 18th century, this was managed by the Bank. During the American war of independence, business for the Bank was so good that George Washington remained a shareholder throughout the period. By the charter renewal in 1781 it was the bankers' bank – keeping enough gold to pay its notes on demand until 26 February 1797 when war had so diminished gold reserves that – following an invasion scare caused by the Battle of Fishguard days earlier – the government prohibited the Bank from paying out in gold by the passing of the Bank Restriction Act 1797; this prohibition lasted until 1821. The 1844 Bank Charter Act tied the issue of notes to the gold reserves and gave the Bank sol
Deutsche Bank AG is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany. The bank is operational in 58 countries with a large presence in Europe, the Americas and Asia; as of April 2018, Deutsche Bank is the 15th largest bank in the world by total assets. As the largest German banking institution in the world, it is a component of the DAX stock market index; the company is a universal bank resting on three pillars – the Private & Commercial Bank, the Corporate & Investment Bank and Asset Management. Its investment banking operations command substantial deal flow in the "Bulge Bracket" category, maintain different "sell side" and "buy side" departments. Deutsche Bank was founded in Berlin in 1870 as a specialist bank for financing foreign trade and promoting German exports, it subsequently played a large part in developing Germany's industry, as its business model focused on providing finance to industrial customers. The bank's statute was adopted on 22 January 1870, on 10 March 1870 the Prussian government granted it a banking licence.
The statute laid great stress on foreign business: The object of the company is to transact banking business of all kinds, in particular to promote and facilitate trade relations between Germany, other European countries and overseas markets. Three of the founders were Georg Siemens, whose father's cousin had founded Siemens and Halske, Adelbert Delbrück and Ludwig Bamberger. Previous to the founding of Deutsche Bank, German importers and exporters were dependent upon British and French banking institutions in the world markets—a serious handicap in that German bills were unknown in international commerce disliked and subject to a higher rate of discount than English or French bills. Hermann Zwicker Anton Adelssen Adelbert Delbrück Heinrich von Hardt Ludwig Bamberger Victor Freiherr von Magnus Adolph vom Rath Gustav Kutter Gustav Müller Wilhelm Platenius, Georg Siemens and Hermann WallichThe bank's first domestic branches, inaugurated in 1871 and 1872, were opened in Bremen and Hamburg, its first foray overseas came shortly afterwards, in Shanghai and London followed sometime by South America.
The branch opening in London, after one failure and another successful attempt, was a prime necessity for the establishment of credit for the German trade in what was the world's money centre. Major projects in the early years of the bank included the Northern Pacific Railroad in the US and the Baghdad Railway. In Germany, the bank was instrumental in the financing of bond offerings of steel company Krupp and introduced the chemical company Bayer to the Berlin stock market; the second half of the 1890s saw the beginning of a new period of expansion at Deutsche Bank. The bank formed alliances with large regional banks, giving itself an entrée into Germany's main industrial regions. Joint ventures were symptomatic of the concentration under way in the German banking industry. For Deutsche Bank, domestic branches of its own were still something of a rarity at the time. In addition, the bank perceived the value of specialist institutions for the promotion of foreign business. Gentle pressure from the Foreign Ministry played a part in the establishment of Deutsche Ueberseeische Bank in 1886 and the stake taken in the newly established Deutsch-Asiatische Bank three years but the success of those companies in showed that their existence made sound commercial sense.
The immediate postwar period was a time of liquidations. Having lost most of its foreign assets, Deutsche Bank was obliged to sell other holdings. A great deal of energy went into shoring up, but there was new business, some of, to have an impact for a long time to come. The bank played a significant role in the establishment of the film production company, UFA, the merger of Daimler and Benz; the bank merged with other local banks in 1929 to create Deutsche Bank und DiscontoGesellschaft, at that point the biggest merger in German banking history. Increasing costs were one reason for the merger. Another was the trend towards concentration throughout the industry in the 1920s; the merger came at just the right time to help counteract the emerging world economic and banking crisis. In 1937, the company name changed back to Deutsche Bank; the crisis was, in terms of its political impact, the most disastrous economic event of the century. The shortage of liquidity that paralyzed the banks was fuelled by a combination of short-term foreign debt and borrowers no longer able to pay their debts, while the inflexibility of the state exacerbated the situation.
For German banks, the crisis in the industry was a watershed. A return to circumstances that might in some ways have been considered reminiscent of the "golden age" before World War I was ruled out for many years. After Adolf Hitler came to power, instituting the Third Reich, Deutsche Bank dismissed its three Jewish board members in 1933. In subsequent years, Deutsche Bank took part in the aryanization of Jewish-owned businesses. During the war, Deutsche Bank incorporated other banks that fell into German hands du
Credit Suisse Group AG is a Swiss multinational investment bank and financial services company founded and based in Switzerland. Headquartered in Zürich, it maintains offices in all major financial centers around the world; as the second largest bank in Switzerland, it is considered a "Bulge Bracket" bank providing services in investment banking, private banking, asset management, shared services. Credit Suisse is known for its strict bank -- banking secrecy practices. Credit Suisse was founded in 1856 to fund the development of Switzerland's rail system, it issued loans that helped create the European rail system. In the 1900s, it began shifting to retail banking in response to the elevation of the middle class and competition from fellow Swiss banks UBS and Julius Bär. Credit Suisse partnered with First Boston in 1978. After a large failed loan put First Boston under financial stress, Credit Suisse bought a controlling share of the bank in 1988. From 1990 to 2000, the company made a series of acquisitions increasing their market share via the purchases of Winterthur Group, Swiss Volksbank, Swiss American Securities Inc. and Bank Leu, among others.
The company restructured itself in 2002, 2004 and 2006. It was one of the least affected banks during the global financial crisis, but afterwards began shrinking its investment business, executing layoffs and cutting costs; the bank was at the center of multiple international investigation for tax avoidance which culminated in a guilty plea and the forfeiture of US$2.6 billion in fines from 2008 to 2012. In 2017, Credit Suisse had CHF 1.376 trillion of assets under management, an increase of 9.9% from 2016. Credit Suisse Group AG, is organised as a joint-stock company registered in Zürich that operates as a holding company, it owns other interests in the financial services business. Credit Suisse is governed by a board of directors, its shareholders and independent auditors The Board of Directors organize the annual General Meeting of Shareholders while investors with large stakes in the company determine the agenda. Shareholders elect auditors for one-year terms, approve the annual report and other financial statements, have other powers granted by law.
Shareholders elect members of the board of directors to serve a three-year term based on candidates nominated by the Chairman's and Governance committee and the Board of Directors meet six times a year to vote on company resolutions. The Board sets Credit Suisse's business strategies and approves its compensation principles based on guidance from the compensation committee, it has the authority to create committees that delegate specific management functions. Credit Suisse has Private Banking & Wealth Management and Investment Banking. A Shared Services department provides support functions like risk management, legal, IT and marketing to all areas. Operations are divided into four regions: Switzerland, the Middle East and Africa, the Americas and the Asian Pacific. Credit Suisse Private Banking has wealth management and institutional businesses. Credit Suisse Investment Banking handles securities, investment research, prime brokerage and capital procurement. Credit Suisse Asset Management sells investment classes, alternative investments, real-estate, fixed income products and other financial products.
Credit Suisse's founder, Alfred Escher, was called "the spiritual father of the railway law of 1852," for his work defeating the idea of a state-run railway system in Switzerland in favor of privatization. Escher founded Credit Suisse jointly with Allgemeine Deutsche Credit-Anstalt in 1856 to provide domestic funding to railway projects, avoiding French banks that wanted to exert influence over the railway system. Escher aimed to start the company with three million shares and instead sold 218 million shares in three days; the bank was modeled after Crédit Mobilier, a bank funding railway projects in France, founded two years prior, except Credit Suisse had a more conservative lending policy focused on short-to-medium term loans. In its first year of operation, 25 percent of the bank's revenues was from the Swiss Northeastern Railway, being built by Escher's company, Nordostbahn. Credit Suisse played a substantial role in the economic development of Switzerland, helping the country develop its currency system, funding entrepreneurs and investing in the Gotthard railway, which connected Switzerland to the European rail system in 1882.
Credit Suisse helped fund the creation of Switzerland's electrical grid through its participation with Elektrobank, a coalition of organizations that co-financed Switzerland's electrical grid. According to The Handbook on the History of European Banks, "Switzerland's young electricity industry came to assume the same importance as support for railway construction 40 years earlier." The bank helped fund the effort to disarm and imprison French troops that crossed into Swiss borders in the 1870 Franco-Prussian War. By the end of the war, Credit Suisse had become the largest bank in Switzerland. Throughout the late 1800s, Credit Suisse set up banking and insurance companies in Germany, Brussels and others with the bank as a shareholder of each company, it created insurance companies like Swiss RE, Swiss Life and Schweiz. Credit Suisse had its first unprofitable year in 1886, due to losses in agriculture, venture investments and international trade; the bank created its own sugar beet factory, bought 25,000 shares in animal breeding ventures and supported an export business, Schweizerische Exportgesell
Banknotes of the pound sterling
Sterling banknotes are the banknotes in circulation in the United Kingdom and its related territories, denominated in pounds sterling. Sterling banknotes are official currency in the United Kingdom, Guernsey, the Isle of Man, British Antarctic Territory, South Georgia and the South Sandwich Islands, Tristan da Cunha in St Helena and Tristan da Cunha. One pound is equivalent to 100 pence. Three British Overseas Territories have currencies called pounds which are at par with the pound sterling. In most countries of the world the issue of banknotes is handled by a single central bank or government, but in the United Kingdom seven retail banks have the right to print their own banknotes in addition to the Bank of England; the arrangements in the UK are unusual, but comparable systems are used in Hong Kong and Macao, where three and two banks issue their own banknotes in addition to their respective governments. The Bank of England does act as a central bank in that it has a monopoly on issuing banknotes in England and Wales, regulates the issues of banks in Scotland and Northern Ireland.
Versions of the pound sterling issued by Crown Dependencies and other areas are regulated only by local governments and not the Bank of England. Until the middle of the 19th century owned banks in Great Britain and Ireland were free to issue their own banknotes. Paper currency issued by a wide range of provincial and town banking companies in England, Wales and Ireland circulated as a means of payment; as gold shortages affected the supply of money, note-issuing powers of the banks were restricted by various Acts of Parliament, until the Bank Charter Act 1844 gave exclusive note-issuing powers to the central Bank of England. Under the Act, no new banks could start issuing notes; the last private English banknotes were issued in 1921 by Fox and Company, a Somerset bank. However, some of the monopoly provisions of the Bank Charter Act only applied to Wales; the Bank Notes Act was passed the following year, to this day, three retail banks retain the right to issue their own sterling banknotes in Scotland, four in Northern Ireland.
Notes issued in excess of the value of notes outstanding in 1844 must be backed up by an equivalent value of Bank of England notes. Following the partition of Ireland, the Irish Free State created an Irish pound in 1928; the issue of banknotes for the Irish pound fell under the authority of the Currency Commission of the Republic of Ireland, which set about replacing the private banknotes with a single Consolidated Banknote Issue in 1928. In 1928 a Westminster Act of Parliament reduced the fiduciary limit for Irish banknotes circulating in Northern Ireland to take account of the reduced size of the territory concerned. Elizabeth II was not the first British monarch to have her face on UK banknotes. George II, George III and George IV appeared on early Royal Bank of Scotland notes and George V appeared on 10 shilling and 1 pound notes issued by the British Treasury between 1914 and 1928. However, prior to the issue of its Series C banknotes in 1960, Bank of England banknotes did not depict the monarch.
Today, notes issued by Northern Irish banks do not depict the monarch. The monarch is depicted on banknotes issued by the Crown dependencies and on some of those issued by overseas territories; the following events and Acts of Parliament affected the course of banknote history in Great Britain and Ireland: The wide variety of sterling notes in circulation means that acceptance of different pound sterling banknotes varies. Their acceptance may depend on the experience and understanding of individual retailers, it is important to understand the idea of "legal tender", misunderstood; the assumption that all sterling notes are legitimate and of equal value, are accepted by merchants anywhere, has become a tourism headache in some parts of the UK. In summary, the various banknotes are used as follows: Bank of England banknotes Most sterling notes are issued by the Bank of England; these are legal tender in England and Wales, are always accepted by traders throughout the UK. Bank of England notes are accepted in the Overseas Territories which are at parity with sterling.
In Gibraltar, there are examples of pairs of automatic cash dispensers placed together, one stocked with Bank of England notes, the other with local ones. Scottish banknotes These are the recognised currency in Scotland, although they are not legal tender, they are always accepted by traders in Scotland, are accepted in other parts of the United Kingdom. However, some outside Scotland are unfamiliar with the notes and they are sometimes refused. Institutions such as clearing banks, building societies and the Post Office will accept Scottish bank notes. Branches of the Scottish note-issuing banks situated in England dispense Bank of England notes and are not permitted to dispense their own notes from those branches. Modern Scottish banknotes are denominated in pounds sterling, have the same value as Bank of England notes. Northern Irish banknotes Banknotes issued by Northern Irish banks have the same legal status as Scottish banknotes in that they are promissory notes issued in pounds sterling and may be used for cash transactions anywhere in the United Kingdom.
Department for Business, Energy and Industrial Strategy
The Department for Business and Industrial Strategy is a department of the government of the United Kingdom, created by Theresa May on 14 July 2016 following her appointment as Prime Minister, through a merger between the Department for Business and Skills and Department of Energy and Climate Change. BEIS brought together responsibility for business, industrial strategy, science and innovation with energy and climate change policy, merging the functions of the former BIS and DECC; the Ministers in the Department for Business and Industrial Strategy are as follows: In October 2016, Archie Norman was appointed as Lead Non Executive Board Member for the Department for Business and Industrial Strategy. The department is responsible for government policy in the following areas: Some policies apply to England alone due to devolution, while others are not devolved and therefore apply to other nations of the United Kingdom; some economic policies are devolved but many aspects of several important policy areas are reserved to Westminster.
Reserved and excepted matters are outlined below. Scotland Reserved matters: The Economy Directorate of the Scottish Government handles devolved economic policy. Northern Ireland Reserved matters: Business regulation and support Climate change policy Company law Competition Consumer protection Corporate governance Import and export control Employment relations Energy Export licensing Insolvency Intellectual property Nuclear energy Outer space Postal services Product standards and liability Research councils Science and research Telecommunications Time Trade associations Units of measurementExcepted matter: Outer space Nuclear powerThe department's main counterpart is: Department for the Economy