How to Invest in Palladium: A Guide
Palladium investment may not be as popular as investing in gold, but it has unique benefits that make it an incredible choice for portfolio diversification. The demand for palladium has increased with time, particularly in the manufacturing industry, making it an ideal investment tool.
Palladium – What is it?
Palladium is a pearly white metal that belongs to the same metal family as platinum. Palladium was discovered in the early 1800s while mining for other similar metals like nickel and platinum. Palladium is extracted by miners and corporations worldwide, with most mines located in Russia and South Africa.
Uses of Palladium
Most uses for palladium are related to the manufacturing industry. The most notable sectors that use palladium are jewelry design and automotive. It’s an integral part of producing catalytic converters for vehicles due to its chemical formulation that helps trap dangerous pollutants.
It’s an ideal element for the production of carbon monoxide detectors. Palladium chloride quickly reacts with carbon monoxide gas to create carbon dioxide. It’s also frequently used in the dental industry for building dental bridges and inlays.
Why Invest in Palladium
There are multiple reasons to invest in palladium:
It’s Rare
Palladium is significantly rarer than any other precious metal. The surge in demand has caused a spike in prices due to the supply shortage. Today, palladium is worth nearly $2400 per ounce due to its rarity, significantly higher than any other metal from its family.
Market Use
Palladium is a valuable metal utilized in auto-catalysts, medical, dentistry, jewelry, solar energy, and other industries. This wide range of applications keeps this precious metal in constant high demand.
Storage Value
Palladium has held its value well for a long time, making it an excellent long-term investment. Although it isn’t as stable as gold, it performs well in an investment portfolio.
How to Invest in Palladium
You can invest in palladium using multiple methods. We’ve listed some of the common ways below:
Palladium Stocks
Because mining produces the majority of palladium, mining companies hold most of its stocks. Investors can purchase these stocks through online brokers at the current spot prices.
Palladium ETFs
You have the option to purchase palladium from traded funds. You have contract ownership with this type of agreement and can sell the precious metal according to its market value.
Palladium Bullion Bars and Coins
You also have the option to mint raw palladium in the shape of bullion bars and coins. This ownership comes with extra charges of insurance, storage, and minting. Palladium’s physical ownership helps you ask for the full value when you decide to trade.
If you’re looking to invest in precious metals, consider Orion Metal Exchange.
We’re one of the top precious metal investment companies with decades of experience in the bag. We can help you invest in gold, palladium, silver, or any other kind of precious metal. We also offer secure precious metal storage solutions and consultation for precious metals IRA.
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