Palladium Spot Price

A common question investors ask is: what is palladium? Often confused with platinum, palladium is a different metal that falls under the Platinum Group of Metals and contains iridium, osmium, rhodium, and ruthenium. Palladium is used in many industrial processes and is often preferred over platinum because the palladium price can be about half that of platinum. Palladium’s spot price is defined by raw weight and numerous factors, including currency depreciation.

The palladium price generally refers to the spot price. Palladium is considered a commodity typically valued by raw weight, governed by many factors, including supply and demand, political and economic events, market conditions, and currency depreciation. However, the price of palladium could also refer to the total change of the daily spot price, as compared to the price at the beginning of the trading day.

Ready to invest in other precious metals? Find the live silver price and make informed investments.

Dating back to the Middle Ages, troy ounces originated in France and differed from standard kitchen ounces. These unique measurements mainly function within the precious metals industry for weighing palladium, gold, silver, and platinum.

Typically, when someone refers to an ounce measurement, they are referring to an avoirdupois ounce. Unlike the kitchen ounce, the palladium price - and other precious metals prices - are determined using troy ounces, which are equal to 1.097 avoirdupois ounces.

The bid price is the current highest market offer to sell to a dealer. Customers can expect to receive the bid price when selling palladium to a dealer. The bid price for palladium also depends heavily on the supply and demand in the world market, which varies due to the palladium uses in industrial and technological sectors.

Palladium’s  ask price is the lowest price per ounce for a dealer selling in the current precious metals market. Dealers often sell palladium to customers at the asking price.

The spread is the difference calculated between the asking and bidding prices or the bid-ask spread. The dealer pays an asking price while the customer pays bidding price. The spread price is the profit the dealer makes on the palladium purchase.

Palladium’s premium is the added cost to the product, above the actual metal content’s current price, to cover the dealer’s overhead costs, including costs for manufacturing and delivering.

Palladium and platinum prices are often looked at together to analyze the relative value of the two precious metals. If the ratio swings one way, one of the precious metals is typically considered overpriced while the other is underpriced. One of the reasons for a shift in the ratio could be that demand is up for one and not the other. The palladium to platinum price ratio could also be off because supply for one has become more scarce due to mining issues or production.

First, you need to decide what palladium products you will purchase because there are numerous types you can choose. When buying palladium bullion, you need to choose between palladium coins, rounds, and bars – whichever will fit the type of portfolio or collection you are wanting to build. Search for a respectable seller before purchasing any precious metals.

Lastly, research and decide on storage options for your palladium. Storing palladium with a trustworthy third party company, an example of such being Citadel, is an option or you can select a safe or lock box to protect your investments at home.

Do you want to sell your palladium but do not know how or where to start? APMEX offers you a quick and easy guide on where and how to sell your palladium. APMEX also offers you the option to trade your palladium for other precious metals.

Many use a precious metals IRA to enhance their investment portfolios. As a self-directed IRA, your precious metals IRA provides tax-deferred status for any profits on your palladium investment if the proceeds are kept with your reinvestment custodian or transferred to another IRA account. To qualify for an IRA, palladium must be a .9995 fine.

Investors often see palladium as one way to diversify portfolios and guard against economic downturn. By diversifying your IRA with other precious metals, you can further guard your portfolio. Follow the live price of gold and make informed investments.