Holding individual grams of palladium, the brilliant white-silver metal, may be worthwhile for some investors. If you have been shopping for palladium bullion, there are several key reasons to consider investing in palladium by the gram.
Benefits of Investing in One Gram Palladium Bars
Portfolio Diversification
One of the first reasons to shop for palladium by the gram is its unique relationship between palladium and gold, or the lack of one. The price of gold and the price of palladium have separate market dynamics that are subject to the influence of different forces. While gold may often move in opposition to the day’s market trends, palladium derives much of its value from its use in the automotive sector.
Similarly, the price of palladium is not directly correlated with other asset classes like stocks and bonds, through which palladium products offer stellar diversification to most portfolios.
Low Entry Point
One-gram palladium rounds and bars are more affordable, providing easier entry to the palladium market for investors with a smaller budget.
Liquidity
Due to their accessible price point, single grams of palladium offer high liquidity. Like gold products, palladium products by the gram provide greater and more flexible liquidity due to the higher value of full ounces and kilograms of palladium. Single grams of palladium are more easily tradable in trading or bartering situations. While full ounces still carry more value, their high value can make them difficult to use for barter and trade.
Scarcity
Palladium is scarcer than gold— In fact, palladium is 3,000% more scarce than the precious yellow metal. It is even more scarce than platinum. Additionally, palladium is mined in only a few locations in just a handful of nations, contributing to its scarcity. During times of geopolitical unrest, those mines are subject to disruptions, leaving palladium poised for even greater price growth during political and social instability.
Its high demand, low supply, and growing industrial uses leave it poised for more growth potential in the coming years. In times of economic uncertainty, the value of palladium has grown, and in recent years, it has even surpassed the price of gold.
Industrial Demand and Volatility
As the industrial demand for palladium grows with environmental regulations and efforts to reduce emissions, it remains poised for growth, even amidst the advent of electric vehicles. The price of palladium often demonstrates significant volatility, presenting opportunities for short-term gains.
Spot Price Tracking
If you track the spot price of palladium, you can find the palladium price per gram, ounce, and kilogram to watch for price fluctuations in the unit size you prefer. It is worth remembering that the price of palladium can and will demonstrate significant volatility, which can present uniquely advantageous opportunities for investors to capitalize on short-term price movements.
Investing in palladium offers unique advantages due to its demand, potential for price growth, and scarcity. However, it is subject to volatility and forces like speculative investing, which impart higher risks to palladium investing. For risk-averse investors, buying one-gram palladium bars may help minimize exposure to risk while still reaping some of the benefits of palladium investing.
