Palladium Spot Price

A common question asked by investors is: what is Palladium? Often confused with Platinum, Palladium is a distinct metal that falls under the Platinum Group 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.

The price of Palladium is generally referring to the spot price. Palladium is considered a commodity and is typically valued by raw weight, which is determined 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 calculated relative to the price at the beginning of the trading day.

It is a unit of measure first used in the Middle Ages, in Troyes, France. Troy weight units are different from the everyday kitchen ounce and are primarily used in the Precious Metals industry.

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.

The ask price per ounce is the current minimum price for a dealer to sell in the market. Dealers will offer to sell Palladium to customers for the ask price.

The spread is the difference between the ask price and the bid price, or the bid-ask spread. The dealer pays an ask price while the customer will pay the bid price. The spread price is the profit the dealer makes on the Palladium purchase.

A premium is the added cost to the Palladium product, above the spot price of the actual metal content, to cover the dealer’s overhead costs, including costs for production and distribution.

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-Platinum Price Ratio could also be off because supply for one has become more scarce due to mining issues or production.

The first step is to decide what kind of Palladium you are interested in buying as there are several types you can choose to purchase. Next, determine the form in which you would like to buy. If you are buying Palladium bullion, choose between Palladium coins, bars and rounds.

Search for a respectable seller before purchasing any Precious Metals. Finally, prepare for how you will store your Palladium. You can store Palladium with a trustworthy third party such as Citadel, a subsidiary of APMEX, or select a vault or lockbox 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 an easy step-by-step process on how and where to sell 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 .9995 fine. Investors often see Palladium as one way to diversify portfolios and guard against economic downturn.