You’ve likely heard of people investing in popular precious metals like platinum, gold, and silver, but what about palladium? Investors often diversify their assets to achieve optimal investment portfolio growth by purchasing various physical assets, like real estate, jewelry, platinum, and palladium. So, is palladium a good investment for your financial goals?
At Oxford Gold Group, we want to help you secure your future by investing your finances wisely. We understand that everyone has different short- and long-term investment goals, so what works for others might not be a good fit for you.
Below, we discuss everything you need to know about investing in palladium so you can make an educated decision. We recommend speaking with your financial advisor before taking any action.
Palladium is a strong, rare, white-colored precious metal, frequently confused with white gold. Its unique features make it perfect for various uses, like:
Depending on your financial goals, palladium investing can be a solid addition to your portfolio. Like other precious metals, palladium investing typically yields better long-term results than instant wins. Palladium prices frequently fluctuate, though the palladium price forecast displays easy-to-predict gradual trends for anyone who wants to invest for multiple decades.
Adding palladium to your precious metals investing plan offers various benefits. Reasons to consider a palladium investment include:
The demand for palladium is stronger than the gold and silver markets because of the limited supply and growing need for environmental solutions. As global warming becomes a pressing threat, hybrid vehicles are a major goal for many car manufacturers. Palladium can help achieve this.
Aside from this goal, companies have shifted toward palladium catalytic converters because of their unique ability to separate and convert nitrogen oxide molecules into harmless gases. Asian car manufacturers have embraced this opportunity to reduce carbon emissions, increasing the demand for the limited palladium supply.
Palladium is valuable not only because of its rising demand but also because of its low supply. Currently, most of the world’s palladium supply comes from South Africa and Russia, which both have potential concerns. With labor rights issues, poor working conditions, and strikes in South Africa and declining output from Russia, palladium production could halt at any time.
As physical palladium becomes rarer, palladium prices increase. If you buy palladium today and the supply tightens even more in the next 10 years, you could enjoy substantial investment success.
While gold, platinum, silver, and other precious metals typically gain value at predictable, steady rates over time, palladium recently soared for the reasons discussed above. In 1998, when global governments began taking action against pollution, platinum metal values increased by over 600%. In August 1977, one troy ounce of palladium was worth $41.70; in December 1998, it reached $332.15.
Today, the value of palladium bars and palladium coins continues to skyrocket. In February 2022, palladium reached $2,981.90 for one troy ounce. So far, no replacement palladium options exist, meaning this market trend should continue as the metal becomes scarcer.
Many people assume investors stack bars in a private safe in their home, though this usually isn’t the case. Like any precious metal, there are multiple options for investing in palladium. Depending on how much palladium you wish to purchase, your financial goals, and how you want to gain exposure to the palladium market, one of the options below might work for you.
Exchange-traded funds (ETFs) are pooled investment security products that act similarly to mutual funds. Palladium ETFs aren’t direct palladium investments. Instead, they’re standard investments backed by the metal.
This option helps you gain exposure to the precious metal and palladium markets without directly investing in these products.
The most popular palladium ETFs include:
You can invest in palladium stocks by purchasing shares of companies that produce the precious metal. To do so, you should carefully research your different options across the globe, including their government conditions, competitive landscapes, and business successes or failures. Since the company’s mines could shut down, investing in a business that produces palladium bullion is much riskier than palladium ETFs.
If you wish to avoid overseas investments, you can invest in palladium with a United States company. While most of the world’s palladium coins and bars come from South Africa and Russia, you can still choose between the following North American options:
Palladium bullion refers to physical palladium bars, coins, and assets. When you invest in palladium bullion, you don’t have to worry about complicated factors like a mine shutting down because you already possess the items. Your top priority when purchasing bullion is keeping it safe and selecting an appropriate storage method.
When purchasing any gold or palladium bullion, always verify the authenticity first. Avoid buying non-certified items online without seeing them first, as they may have impurities or imperfections. You can sell your assets to investors or jewelers whenever you wish to profit.
There are many ways to secure your financial future. You might want to invest in palladium if:
Before making any decisions, we recommend consulting with your financial advisor to discuss the best ways to invest your earnings.
Besides palladium, some of the most popular precious metals on the market include:
Palladium differs from gold, silver, and platinum because it’s more volatile, which means its value frequently fluctuates because of the constant supply and demand changes. Investors often prefer palladium because of its rarity and necessity in an environmentally friendly future.
However, gold investors might argue that the unpredictable metal production methods and value jumps make this investment riskier than other precious metals.
When choosing among different ways to invest your money, consider how much you want to make. Some people invest in store-of-value products to hedge against inflation, while others are looking for massive profits. Weighing your goals and the associated risks can help you make an educated decision.
Financial advisors typically recommend allocating 5% to 20% of your investment portfolio to precious metals. The exact number varies based on your personal goals and existing investments, so it’s wise to speak to a financial advisor.
We can help you diversify your precious metal portfolio with certified palladium coins and bars at Oxford Gold Group in Los Angeles, CA. You can trust our products knowing that we have an A+ Better Business Bureau rating and more than 100 five-star customer reviews on Google. When you’re ready to solidify your hard-earned savings, call Oxford Gold Group at (855) 600-GOLD to speak with our team.
INSIDE THIS INVESTMENT GUIDE YOU WILL LEARN:
• How Gold & Silver can protect your savings & retirement accounts
• Types of Gold & Silver products available for Home Delivery
• How a Gold & Silver IRA can protect your Retirement account