Investing in Palladium for Beginners
When it comes to investing in base metals, most people are familiar with the traditional “big three”: gold, silver, and platinum. However, in recent years, investors are showing a growing interest in other platinum groups of metals (PGMs) such as rhodium, iridium, and especially palladium. Investing in platinum metals is an exciting venture, but many people decide to stay away from it because they just don’t know much about it. In this guide, we’ll look at the origins of palladium, what palladium is used for, how to invest in palladium bullion, and where you can buy it.
What Is Palladium?
Palladium is a lustrous silvery-white metal that was discovered in 1803 by William Hyde Wollaston. It is a ductile, and malleable transition metal with the symbol Pd and atomic number 46. The word “palladium” comes from an asteroid—an appropriate name given that palladium is one of the rarest metals on the planet. It is mostly mined in Russia and South Africa.
Usage of Palladium
Palladium has a lot of the same uses and benefits as platinum but at a lower price point. You’ll find it in jewelry, electronics, dentistry, and other industries. The dense and soft metal is highly resistant to corrosion which makes it an excellent material for use in jewelry. It is also hypoallergenic which means that people sensitive to metal can use this metal without the risk of allergies.
It is also used in dentistry for fillings, watches, laboratory equipment, and in pioneering technologies to help make hydrogen fuel cells. It has applications as catalysts, alloy additives, and electronic components. Because of which there is a high demand for it from the electronic, medical, automotive, and aerospace industry.
Why Invest in Platinum?
Since the global economic meltdown that began in 2008, precious metals have been an increasingly popular investment tool as they are a proven store of value and preserver of wealth. Several central banks around the world had tried to stimulate economic growth by printing money that devalued their respective currencies. Gold and silver rose in value due to this because investors were looking for safe havens for their cash that help to maintain their investment’s purchasing power. Investing in palladium is a good alternative to traditional financial instruments such as investing in stocks and bonds, or putting money into a bank CD. A lot of investors can diversify their portfolios by investing in the metal.
How to Invest in Palladium?
Investing in palladium is a great investment strategy and it can be done without having to risk a lot of money. The best way to invest in palladium is to buy palladium coins and bars, but you can also invest in futures and some mutual funds that are heavily invested in palladium or a palladium exchange-traded fund.
Palladium Exchange-Traded Funds
A growing number of investors prefer to invest in assets that are backed by precious metals. This is why investing in palladium exchange-traded funds or ETFs are among the most popular ways of buying this metal and help save storage-related hassles. However, you will not have direct ownership. If you are more old school and want to own the physical asset, then investing in physical metals is the way.
Palladium Bullion Bars
Palladium bullion bars are available in various sizes and weights, ranging from 1 oz to 10 oz bars. Each bar has a serial number and is guaranteed for weight and purity by the leading authorities. A lot of palladium bullion bars available for investors are minted by companies around the world.
Palladium coins are a form of investment that is becoming increasingly popular among both speculators and those who believe that it will continue to appreciate over time. They are available in several different forms and are designed to be large, impressive pieces of metal which make them excellent collector’s items. Some coins are minted as bullion while others are created as commemorative pieces or legal tender currency.
Outlook for 2022
The global palladium market has experienced a steady increase in demand in the last couple of decades, primarily driven by the auto industry. Palladium is used as a catalyst in diesel vehicles to reduce nitrogen oxide and particulate matter emissions. With climate change becoming a pressing issue and more and more governments passing legislation to curb vehicle emissions. The demand for palladium is expected to increase in 2022.
Investing in palladium is a good idea if you are concerned about the future of the economy given this pandemic and the tense geopolitical climate of the world over the situation in Ukraine and the middle east. Prices also greatly depend on the supply from the mines that have been affected due to lockdowns and strikes from workers. Given the emergence of omicron variant supply side issues can emerge in the future.
Given that it is trading at a lower price currently; you should make sure that you have some in your possession before the prices go higher.
Want to Invest in Precious Metals such as Palladium to Make Money?
Investing in palladium is a smart decision for those looking to diversify their investment portfolio. With its limited supply and current uncertain state of the world, palladium is an excellent option for investors.
If you’re looking at palladium bullion, be sure to check out Orion Metal Exchange first, where you’ll find the best palladium prices and a vast selection of palladium bars, and bullion coins.
Orion Metal Exchange is one of the most recognized precious metals investment dealers in all of America with experience of more than 50 years. We help people invest their hard-earned money in a wide variety of precious metals such as silver, gold, palladium bars, platinum bullion bars, as well as gold and silver IRAs.