Invest In Palladium
Why Buy Palladium?
Marc Lichtenfeld, our esteemed Chief Income Strategist at The Oxford Club, brings a wealth of experience and expertise in investment portfolio diversification. He emphasizes the significance of considering alternative assets, including palladium, to achieve a well-rounded portfolio.
Palladium, a precious metal often overlooked compared to gold and silver, has displayed remarkable price spikes, drawing the attention of investors. The price fluctuations of palladium can be attributed to various factors, and a comprehensive analysis is imperative to determine its suitability for investment.
Palladium possesses unique characteristics compared to other metals, such as platinum and gold, and a thorough understanding of these variations is critical for making informed investment decisions.
It is important to note that palladium is one of the market’s most highly sought-after precious metals. This is due to its exceptional properties, distinguishing it from other metals, including platinum, ruthenium, rhodium, osmium, and iridium. Palladium is typically extracted from Russia or South Africa as a byproduct of platinum or nickel production.
The aforementioned devices can significantly reduce the emission of toxic gases from automotive exhaust systems. Palladium is a versatile metal that finds application in various industries, such as dentistry, jewelry, fuel cells, medical equipment, and consumer electronics like laptops and smartphones.
The growing demand for consumer products has increased interest in palladium. As a precious metal, it has garnered the attention of investors looking to diversify their portfolios. This is because of its unique properties and limited substitutes in many applications, making it a valuable asset.
Factors That Influence the Price of Palladium
Two main elements power Palladium price forecast in the precious metals market.
Supply and Demand
In the world of precious metals, palladium's supply and demand dynamics play a crucial role in determining its market value. Palladium is notably scarcer than gold, with a ratio of 30:1, resulting in severely constrained supply levels.
According to industry specialist Frank Holmes, in April 2021, Kitco News reported that palladium had seen its tenth successive year of investment demand surpassing its supply. This highlights the persistent and increasing interest in this metal from investors seeking to capitalize on its unique characteristics and scarcity.
Auto Industry Changes
The automotive industry has experienced a consistent rise in demand for palladium, particularly in Asia. As vehicle production increases and governments enact stricter regulations to reduce vehicle pollution, the need for catalytic converters has also grown.
Palladium plays a crucial role in these devices, and as demand for vehicles and environmental compliance continues to escalate, more of this metal is required to meet the need.
Palladium vs. Platinum vs. Gold
Palladium, a precious metal, commands a higher price per ounce than platinum or gold. Apart from this, some key distinctions exist between them:
- Firstly, palladium is a rarer precious metal than platinum, gold, and other valuable metals, resulting in challenges in sourcing it from mining.
- Secondly, when it comes to producing catalytic converters, platinum, and palladium are more popular than gold.
- Thirdly, gold is preferred for crafting jewelry, while palladium and platinum are secondary choices.
Despite the varying prices, these precious metals offer similar advantages. They are reliable assets that protect against inflation and preserve one’s wealth. Additionally, all three precious metals have ISO currency codes assigned by the International Organization for Standardization.
Why Add Palladium to Your Precious Metals Portfolio?
The choice to include Palladium in your lineup of precious metals is yours. However, its capability to diversify your portfolio and safeguard against risk may persuade you that this exclusive commodity should form part of your collection through legal-tender products.
Factors That Influence the Price of Palladium
Investing in Palladium is wise; you can acquire two distinct forms of palladium bullion: coins or bars
Palladium Bars
When considering palladium bars, finding a reputable mint or refinery can be challenging. Fortunately, several well-known private institutions specialize in creating high-quality precious metals products. These include Argor Heraeus, PAMP Suisse, Credit Suisse, Scotiabank Valcambi Suisse, and Johnson Matthew Lewis & Clark. Palladium bars are available in various sizes, ranging from the commonly found 1-ounce bar to larger options such as the 10-ounce, 100-gram, 50-gram, 10-gram, and 1-kilogram bars. Each of these options offers unique benefits depending on your investment needs.
Palladium Coins
Investing in palladium coins can provide diverse options for individuals looking to broaden their investment portfolio in precious metals. The American Eagle and Canadian Maple Leaf are popular choices that offer accessibility and a variety of options for investors interested in palladium.
