Palladium is very popular amongst precious metals investors as a means of enhancing and diversifying portfolios. Palladium is one of the Platinum Group Metals (PGM), which are much rarer and difficult to mine than gold or silver. In addition to investing benefits, platinum also has a number of technological applications, including catalytic converters in cars.
Like platinum, almost all of the world’s palladium can also be found in South Africa and in Russia. Palladium is normally located in mines alongside platinum, and they are mined together.
Although palladium wasn’t identified and named until 1805, it has been found in artefacts in ancient civilizations, including in Egypt. However, it is thought that at that time it was mistaken for silver.
Palladium is a highly durable metal, with a high melting point, low oxidation (which causes rust). Most commonly the metal is used in catalytic converters in cars, but it is also used in other technical applications, including in cell phones or circuit boards..
Palladium can be used for jewellery, both on its own, or mixed with gold to make white gold.
Investing in Palladium
Like platinum, palladium prices can vary significantly depending on changes to mining conditions or demand within the automobile industry. Many palladium investors purchase physical bars or coins, and palladium is an important metal to maintain in a diversified portfolio of precious metals.
Today, the most common palladium coin available is the 1 Ounce Palladium Maple Leaf. However, other countries have also produced palladium coins in the past. Tonga released a palladium coin in 1967 in honor of their new king. France also minted 100-franc palladium coins in 1987. In 1989 Russia introduced a palladium Ballerina coin, and in 1995, the Perth Mint introduced the palladium Emu. However, with the exception of the palladium Maple Leaf coin, minting of all these other palladium coins was limited and stopped.
It is expected, but has not yet been announced, that the United States mint will release a palladium American Eagle coin in the near future.
Due to its rarity and the fact that it is required for indurstrial purposes, palladium prices can have huge swings, increasing in price by 30-50% in one year. For clients looking to build a diversified precious metals portfolio, we recommend that you add palladium to your holdings.