Norilsk Nickel Buys Palladium to Lower Market Volatility

Norilsk Nickel (MCX:GMKN) has begun purchasing palladium on the market in a move the company says is designed to reduce volatility.
As quoted in the news article:

Sergei Dubovitsky, vice-president at the Russian mining group, said that Norilsk had begun “pilot” purchases of palladium through the Global Palladium Fund, which it created this year with a commitment to invest up to $200m.
It is unusual for a major producer of a commodity to start buying it on the market, but Mr Dubovitsky said the move was justified by the history of palladium, which is principally used in catalytic converters that clean car exhausts. The precious metal surged more than ninefold between 1997 and 2001, leading many carmakers to redouble efforts to reduce their consumption of the metal.

Dubovitsky said:

For us, this fund is not about earning extra money, it’s more about decreasing market volatility. or palladium this topic is more than valid, in the history we had quite dark times when extreme volatility [ … ] ruined the market.

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