Do Not Forget About Palladium

While investments in Silver, Gold and Platinum are popular, you should not forget about investing in Palladium.  Palladium is in the same group of metals as Platinum and shares many of the same qualities. Though more abundant than Platinum, Palladium still holds great value in terms of Precious Metals investing.

Palladium is an important metal in the automotive industry, so as demand increases, the cost is driven higher. That is just one of the reasons this metal is so unique and interesting to investors. “Naturally, with its heavy industrial use, its price tends to rise sharply whenever the automotive industry is expanding rapidly. That's exactly the case in emerging markets like China and India where economic growth has produced millions of new drivers in the last decade.” (Nu Wire Investment)

Demand is continually increasing with more industrial activity happening around the world.

1 gram Palladium Bar - Valcambi Suisse

 

Why is Palladium a Good Investment

It is important to examine the price of Palladium and how it has tracked throughout history.  Undoubtedly, as the supply of Palladium continues to rise, the price will go up, giving investors a key opportunity to diversify their portfolio. Factors that affect Palladium price are:

  • Industrial use: Mentioned previously, Palladium is a key element in the automotive industry. As the demand for more Palladium exists, the higher the prices.
  • Current world events: Approximately 40 percent of the world's Palladium mining and production comes from Russia. The volatility of world and social events can lead to how the metal is mined, causing a slow down in production. 
  • Supply: Supply may be low, but demand is high, making the value of Palladium high now and for the foreseeable future.

 

According to Ben Kramer-Miller of the Cheat Sheet, “Due to the difficulties of mining Platinum and Palladium, there is a supply deficit in these crucial metals — in 2012 demand outpaced supply by 28 percent for Platinum and by 38 percent for Palladium. Consequently, it stands to reason that the prices of Platinum and Palladium will rise in the future, and investors should try to find ways to benefit.”

Palladium is a good investment for current and futures markets. Because of this, Palladium is every bit as important to invest in as other Precious Metals like Gold, Silver and Platinum. Predicting how Palladium will fare against other metals may be impossible, but its high production values today leads one to believe it will again see an increase in price and supply soon. Investors should take a good look at Palladium because, “Palladium can help hedge against inflation and reduce the risk in a portfolio or they can gain value through appreciation. Amid the volatility in 2013 in both markets, which face dwindling reserves and political instability in their countries of extraction, owning physical Platinum and Palladium is becoming more appealing to investors.” (Zacks)

Palladium comes in a wide variety of products that are not only pleasing to the eye, but offer great value for investors.

Palladium Bars and Palladium Rounds


Palladium bars are a few examples of Palladium products available. Bars come in varying sizes from mints all over the world. Below are two examples of several Palladium bars available at APMEX.

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