Is It Worth It to Invest in Palladium Coins

In the big picture, though, investment demand is widely expected to remain a tiny part of PGMs. While gold and silver were discovered thousands of years ago and reportedly have been used as money as far back as 600 BC, palladium was only recently discovered on a relative basis. William Hyde Wollaston, an Englishman, is credited for discovering palladium in 1803 while analyzing samples of platinum ore from a South African mine. That is why, as can be seen from the graph above, the palladium prices reached their peak in the beginning of March and dropped afterwards.

But as soon as the Fed gets more dovish, the palladium prices should be supported. We should not forget also that the situation around Ukraine might get more critical, and any loss of supply from Russia is a serious problem for the palladium demand. What is more, supply deficits might also happen because of South Africa. The palladium market depends heavily on the two big producers, which is likely to eventually lead to deficits and higher prices.

Supply and Demand

In 1998, when global governments began taking action against pollution, platinum metal values increased by over 600%. In August 1977, one troy ounce of palladium was worth $41.70; in December 1998, it reached $332.15. Palladium is a rare precious metal that https://forexarticles.net/investment-real-estate-finance-and-asset-management/ has recently surpassed gold in price, making it one of the most expensive commodities. The problem with palladium is that, just like gold and silver, storing precious metals in significant quantities lowers your net asset value, plus it’s harder to sell.

Similarly, the precious metal palladium is mostly used for industrial purposes—catalysis, printing, soldering, etc.—and a creeping supply shortage has caused the palladium bullion market price to surge. Platinum and palladium have been around for quite some time, but just recently have started breaking into the mainstream precious metals industry. If you’re looking to buy these rare metals, then you’ll want to learn more about them before investing. Whether you’re a first-time buyer or a seasoned veteran, take a look at these quick facts to make an informed platinum or palladium purchase.

Guide to Investing in Palladium

Platinum and palladium, in particular, are like two sides of the same coin. In fact, they are often found mixed in together during the mining process. Plus, platinum and palladium are nearly identical; it is difficult to see any difference between them.

These bars feature beautiful designs and are of the highest quality, so you can enjoy your investment aesthetically, while having the peace of mind that it’s serving your investment portfolio well. Palladium is a platinum group metal, and though it is often confused for its counterpart, palladium is a separate elemental metal. Because of its likeness to platinum, palladium is also used as an industrial catalyst and is a common metal alloyed in the jewelry industry.

Palladium Bullion for Investors

The United States produced 14 metric tons and Zimbabwe produced 13 metric tons. The majority of the world’s supply of this rare metal, which has the atomic number 46 on the periodic table of elements, comes from mines located in the United States, Russia, South Africa, and Canada. That’s why we continue to accumulate physical gold and physical silver—history says they’re likely to experience one of the biggest rushes ever seen. Here’s how the platinum price has performed during each of those economic downturns. In February when sanctions against Russia were imposed, there were deep concerns the supplies from Russia, the key palladium producer, would cease. In other words, many investors began to expect that the West would refuse to import palladium from Russia.

• On Oct. 18, the 50-day moving average was at $2,138.13 an ounce, while the 200-day moving average stood at $2,163.73, FactSet data show.
• No representation or warranty is made as to the reasonableness of the methodology used to calculate such performance.
• It is necessary to understand that the industrial demand for palladium is quite temporary, however.
• Both gold and platinum are extremely scarce, but platinum is superior for industrial uses which make its price relatively more volatile.
• The most direct way to get involved in trading palladium is to purchase palladium bullion directly from a reputed mint or other trustworthy supply source.

Palladium and gold alloy, or white gold, is a common and crucial part of the fine jewelry market. By early 2002, Russia was again exporting palladium supplies and the US dollar spot price of palladium fell by more than 60% from its prior year’s all time record price. As a consequence the Ford Motor Company was forced to write-off a $1 billion US dollar loss on the decreased value of the palladium stockpile its purchasing department had acquired unhedged. Over the past decade, investment funds for palladium as an investment have increased especially since the inception of palladium exchange traded derivatives. Yet still, almost all of today’s palladium demand remains for industrial usage as we will see in the palladium demand section to follow. Palladium is a highly rare precious metal with even smaller above ground physical supplies than silver, gold, and even platinum.

What drives palladium prices?

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. Whether you’ve been thinking about buying platinum or palladium for a while, or are just now learning the difference between the two, you can feel confident that your purchase will be as simple as possible. Check out JM Bullion’s full selection of platinum products, including our platinum bars and platinum coins today. Palladium by nature is more dense than silver therefore investment grade palladium bullion products take up much less storage space per troy ounce than silver bullion products do.

So, the economic slowdown that we have started to see nowadays should definitely affect the demand for shiny metal. By December, the palladium price had reached US$1,657, its lowest point since February 2020. The autocatalyst metal quickly rebounded and ended 2022 at US$1,806, representing a 2.06 percent decline from its January starting price. While palladium demand decreased in 2020 and 2021, the palladium producers saw their deficits nearly cut in half.

Step Aside, Palladium. This Precious Metal Is About to Shine.

Because of its similarities with platinum, palladium shares the market with those seeking to buy platinum. The price of palladium is volatile and unpredictable — giving investors ample opportunity for speculative profit. In conclusion, we’ve touched on a few aspects of palladium that might be new to you.

• One of the reasons that palladium is valuable is because it has many use cases.
• Geopolitical Concerns – This factor can be active on a number of fronts for palladium and is something you should investigate prior to investing.
• Some said Russia might impose countersanctions against the EU and the US that would include a palladium embargo.
• Palladium is used in industrial manufacturing, in catalytic converters for cars, and in jewelry.