Guide to Investing in Palladium

Learn About Investing in Palladium

Gold and Silver receive plenty of attention in the world of Precious Metals. While this is certainly warranted, Palladium also has notable features and value. There is value in this Precious Metal because of its rarity and its uses in practical applications.

Investors have multiple options to diversify their portfolio with these metals, including Palladium bars and rounds. There are multiple reasons why Palladium will make a good addition to your collection or investment. Palladium is a Precious Metal that is often used in industry, which makes it an appealing option for investors.

Palladium has applications across several industries, including automotive, jewelry and health care. Palladium use in the automotive industry can be seen through its use as catalytic converters because of palladium’s ability to break down harmful pollutants. Palladium is also used in dentistry, creating a biocompatible alloy for dental, joint and valve replacement.

Palladium has the ability to create strong hydrogen bonds, which aids in its congruity with human tissue. Palladium is harder than both Platinum and Gold, which makes it an appealing investment option. This Precious Metal is 30 times rarer than Gold, 15 times rarer than Platinum and 100 times more rare than Silver. Palladium is also a more recently discovered Precious Metal when compared to Gold, Silver and Platinum, having been found in 1803, adding to its rarity.

Palladium is often used in industry because of its high melting point and corrosion resistance. Palladium enjoys a bright future and investors can benefit from Palladium bars or Palladium coins.

Palladium coins like the American Palladium Eagle, Canadian Palladium Maple Leaf and the Australian Palladium Kangaroo are gaining popularity with Precious Metal investors because of their rarity and .9995 purity.

Platinum’s Industrial Use

Platinum is used in a variety of ways. It can be found in car converters as a catalyst that is used to filter out more harmful chemicals from the exhaust and is also used as a catalyst in plastic and fertilizer production. Platinum can be found in medical instruments, lab equipment, electronic devices and even in some medicines. Also, to no surprise, Platinum is used in jewelry because it is both durable and beautiful.

Its many uses mean that there is a high demand for Platinum across various industries, making it a desirable Precious Metal to invest in.

Why Platinum and Palladium Are Good Purchases

There is an increased demand for these metals because of their use in industrial applications. They are also rarer than Gold, which gives them more value. The Palladium price per ounce  has steadily grown throughout the years, even during times of recession or political turmoil. Palladium is often seen as an investment option that balances both industrial and investment purposes.

Palladium moves at nearly the same rate as Gold, making Palladium an excellent store of value. Additionally, Palladium is rarer than both Gold and Silver, making the metal an excellent investment option.

With distinctive color and texture, Platinum complements other coins and bars beautifully. Palladium has slightly more Silver color and the two metals look great when paired together. Palladium has become even more valuable because it can be found in its native element, unlike Silver, which must be mined.

Palladium is also found in only a handful of places around the globe, like South Africa, the United States, Canada and Russia. Since there are so few places in the world where this Precious Metal can be found, it is likely that Palladium will become scarcer as time passes and demand increases, resulting in potentially higher value.

Palladium has a long history as an investment staple, owning Palladium is also unique as it provides safety for those concerned with geopolitical and economic risks. Palladium investing can be appealing to those looking for a balance between Precious Metal investing and industry uses.

Palladium: The Untapped Metal

Palladium is a relatively untapped market for investors because it was first discovered in 1806 and has only been traded as a commodity since 1967, compared to traditional Precious Metals investing which can date back to ancient times. Palladium prices have increased by 400% over the past decade, and experts predict that Palladium prices will continue to rise.

Palladium bars are available at the lowest premium which makes them more affordable. Palladium bullion is a great way to own investment-grade metal because it is relatively easy to obtain because many reputable dealers sell Palladium bars online.

Palladium bars come in many assorted sizes, including 1 oz, 5 oz and 10 oz. Palladium bars provide an efficient way to purchase Palladium because they contain more Precious Metal than Palladium coins and come at the lowest premiums. Palladium bars are a popular way of Palladium investing because Palladium bars come in standard shapes and sizes, making storage and transportation easier. Palladium bars also provide the lowest Palladium price per ounce.

Palladium Coins

Palladium coins are made in various sizes. Palladium coins can be found in sizes of 1/10 oz, ¼ oz, ½ oz and even a 2 oz Palladium coin. Palladium coins with beautiful designs are available along with Palladium coins that have unique characteristics for investors to consider. Bullion coins and rounds are accessible ways to purchase Palladium because they come in smaller, fractional sizes that can be more affordable for those with modest budgets.

Palladium moves at nearly the same rate as Gold, making Palladium an excellent store of value Palladium Palladium is both rarer than Gold and Silver, making Palladium an excellent investment option.

Displaying Platinum bullion pieces next to historical, collectible coins adds contrast and intrigue. Because Palladium is utilized in so many different industries, the demand is constantly rising. As Palladium is largely used in major industries, such as the automotive industry, the change in value is directly impacted by the events of those individual industries.

Product variety and aesthetics are also reasons Palladium is a good purchase. Here are some other reasons why Palladium is an excellent metal to invest in:

  • Like Gold and Silver, Platinum and Palladium offer a diverse choice of bullion products. From Platinum coins like the Platinum American Eagles and Platinum Maple Leafs to Palladium Russian coins and Palladium bars, several options are available. Buyers have options that add variety and diversity as many of these metal products come in fractional sizes to meet the demands of a collector’s budget.
  • The aesthetic value is an important reason for investing. Designs, whether a Maple Leaf or Russian ballerina, are emphasized across the canvas of the frosty surfaces. The aesthetically pleasing color and shine are attractive to buyers and dealers. Palladium’s color is more reflective than other metals and many Palladium bullion buyers enjoy the element of surprise in discovering the metal in its natural state.

Palladium Futures

Investing in Palladium futures can be a great way to diversify your portfolio. Palladium is poised for another record year of growth that will have drastically positive effects on Palladium investment options in the coming months.

Palladium’s potential has been recognized by investors, with Palladium being added in March 2013 to the Portfolio Advisory Council Precious Metals Composite Index, which is used by the CME Group to measure Palladium’s performance against other Precious Metals. This index replaced the Dow Jones-UBS Precious Metals Index. Palladium’s inclusion in this index demonstrates Palladium’s value to investors and that the metal is a valuable resource for investors.

Palladium futures allow investors to not only invest in a Precious Metal projected to have a bullish Palladium price, but also one with a low Palladium price per ounce. Palladium futures have their place in the portfolio of Palladium investors because they allow for trading flexibility and the opportunity to profit at different Palladium prices.

Palladium Exchange-Traded Funds

Additionally, investing in Palladium ETFs can be a way to diversify Palladium holdings in smaller amounts. Palladium ETFs are economical options for investors who want to invest in Palladium without bearing the higher premiums required by coin and bar purchases. Additionally, Palladium ETFs can allow Palladium investors the opportunity to trade Palladium during times when dealers may not have Palladium in stock.

Palladium ETFs have experienced enormous success in the last five years, greatly increasing Palladium investment possibilities. Palladium ETFs, Palladium funds and Palladium securities are a great way to invest in Palladium at the current spot price. Additionally, Palladium ETFs and funds give investors the opportunity to purchase Palladium without taking physical possession of the metal.

Securities backed by Palladium have a similar capability to Palladium ETFs, but they are not as liquid as Palladium ETFs, which may be a crucial factor to keep in mind when making your Palladium investment decision.

Stay Updated on Spot Prices

Whenever investing in Precious Metals, it is always essential to be aware of spot price and market trends. Knowing Palladium, Platinum, Gold and Silvers’ spot prices is crucial to investing at the best possible time so that you can get the best return on investment. Spot price charts tell you how much a troy ounce of a specific Precious Metal is going for on the market and this changes as supply and demand shift, as well as if economic or political disruptions occur.

Key Takeaways

Palladium is a newer and more rare Precious Metal that will likely maintain, if not increase, its value in the coming years as industrial demand rises. Additionally, the supply appears to be more limited than other Precious Metals, making Palladium a rarity. You can invest in physical Palladium through bars and coins, or through Palladium ETFs and stocks.

However, if you invest in this Precious Metal, it is important to always stay up to date on market trends and spot prices and to always consult with a financial advisor before making any serious investing decisions.

Expand your collection today and shop our assortment of Palladium products.

APMEX recommends discussing the pros and cons of investing with a financial adviser or professional.

Explore More On APMEX

Silver

Platinum

Rare Coins