Silver vs. Platinum vs. Palladium – How to Tell the Difference

You don’t have to be a pro to see major market changes. In times of turmoil and uncertainty, many people look to invest in safe currencies and precious metals.

In previous years, precious metals have performed well during economic crises. Gold, silver, palladium, or platinum all hold their value and aren’t subject to inflation. As a result, precious metals are one of the best options against economic outbreaks that throw the market into unpredictability.

If you’re looking to invest in precious metals, you need to understand the difference between various precious metals to decide which one to invest in. Whether you’re a seasoned capitalist or a first-time buyer, it’s good to know the difference between silver vs. platinum vs. palladium.

What is Silver?

Commonly known as a versatile precious metal, silver offers many uses, benefits, and investment opportunities. It has a lower price per ounce and is more abundant in nature compared to gold and other precious metals.

Silver is a softer metal and is susceptible to corrosion. However, silver is still seen as a safe investment during economic instability. There are a few different ways to include silver in your investment portfolio.

Investing in bullion coins is the most popular way to invest in silver. You can buy quantities of the precious metal outright and sell it at any time. Silver is commonly found in the form of bars, ingots, or rounds. Due to the metal’s soft nature, the coins may be subject to wear and tear over time.

Aside from silver bullion and coins, some people also invest in paper silver, available in the form of certificates and ETFs.

Value of silver

Unlike gold, the supply and demand for industrial uses are greater, which is why silver’s value is unstable. While we can’t compare silver and gold in terms of popularity (gold was and will be on the top), here are some reasons investors consider investing in silver coins:

• Has an intrinsic value
• Is considered legal tender in the U.S.
• The global silver investment over the past five years is more than $8 billion
• Due to multiple uses and applications, the demand for silver will continue to increase

How much does silver cost?

As a popular commodity, silver trades 24 hours across worldwide exchanges. When it comes to price, it continually changes. Although there are periods in which the prices slowly fluctuate, sometimes the prices may change rapidly. The current price for one troy ounce of .999 fine silver is $19.03.

What is Platinum?

Like silver, platinum is also traded on global markets. In terms of price, it tends to sell for a higher rate than silver during political stability because it is rare and has unique features.

An incredibly dense precious metal, platinum is resistant to scratches. Therefore, platinum coins shine brighter than any other precious metal in the industry. They feature an exceptional glow that can withstand wear and tear over time. Platinum coins have unique patterns and designs and will keep their details longer than silver or palladium coins.

Platinum is considered an industrial metal, and demand for it comes from automotive catalysts used to decrease harmful emissions. It is also used in electronic devices and oxygen sensors, which require a corrosion-resistant and hard metal.

Recently, platinum has become popular as a bullion investment product, especially in the form of platinum rounds and bars.

Value of platinum

Compared to silver and palladium, platinum has a shorter investment history, but that doesn’t mean it’s not a great investment opportunity. Investors choose it because it has:

• A stable supply (more than 70% of platinum comes from South Africa)
• High demand in the automotive industry
• Stability against inflation and devaluation

How much does platinum cost?

As one of the world’s rarest metals, platinum exceeds the price you will pay for a silver coin or bullion. However, compared to gold, it hasn’t surpassed the most valued metal, despite being infrequent. There is speculation that platinum exists in abundance on other planets and the moon.

While the platinum price is more unstable than silver and palladium, it has grown five-fold over the last couple of years. The current spot price per ounce is $870.

What is Palladium?

Palladium is similar to platinum and shares many features, but is darker in color. Palladium is a precious hard metal that resists corrosion. Compared to platinum, it is more abundant in nature, and it is one of the most durable elements. In terms of weight, palladium is lighter than platinum.

Palladium is mostly used in the automotive industry for gas-powered engines. It is also used as a conductor for electronic devices. It is also mixed with gold and other metals to create “white gold” jewelry pieces.

Value of palladium

Compared to silver, palladium is a relatively new investment asset. However, investors choose it to boost their portfolios because:

• The demand for palladium has increased by over 40%
• There are supply deficits
• It outperforms silver and gold
• It has a great value-to-density ratio

How much does palladium cost?

The spot price of palladium is continually going up and down, and many factors impact the fluctuation, including economic data, politics, and supply and demand. The current spot price per ounce is $1,940.

Even though all three metals look similar at first glance, they have unique features that can help you determine the differences between silver vs. platinum vs. palladium.

How to Differentiate Silver vs. Platinum vs. Palladium

Silver, platinum, and palladium have similar colors, almost equal to the untrained eye. The primary differences are that silver stands out as the most common precious metal, but it is susceptible to corrosion and scratches. Seeing these flaws on coins is a good indication that the coin is pure silver and not a combination of different metals.

Platinum and palladium have a similar appearance. However, platinum is less naturally abundant, far denser, and more expensive. Palladium is common in industrial uses due to its lower price point. Both metals are often used in the jewelry industry due to their unique white and shiny appearance.

Silver, platinum, and palladium are available in the same forms as gold, including jewelry, bars, rounds, and coins. However, the price for these white metals is more unstable, so they’re less appealing to many investors. Those who don’t mind the constant ups and downs in prices find these metals quite attractive.

What Moves the Prices of Silver, Platinum, and Palladium?

From an investment point of view, it’s important to know more about what drives silver, platinum, and palladium prices up and down if you’re considering investing in these precious metals. Understanding pricing fluctuations requires a careful analysis of different factors, including market price, demand and supply, mining, the cost of production, and more.

Silver is usually in the basket with gold and other precious metals because it tends to maintain its value. However, silver has widespread industrial use, so its price is linked to economic conditions.

While other precious metals do well during market uncertainty, silver has not prospered during the stock market crisis. As today’s world is full of uncertainties, experts speculate that silver will play a role in the future, when the prices are expected to go up. Since 2016 it hasn’t risen past $20, but we can hope it will grow in 2021 or beyond and hopefully surpass $30.

The spot prices of platinum and palladium, on the other hand, are determined by the jewelry demand, auto industry, and investment demand. These three factors will determine whether the prices for platinum and palladium will go up or down.

Both metals benefit from the auto industry because they are used to create catalytic converters. If car sales grow, the prices for these two metals will increase as well.

Palladium is more dependent on industrial applications than platinum. Platinum, besides its uses in the automotive industry, is also popular in the jewelry business.

Platinum’s use in coins is relatively new. Coins and bullion weren’t produced until the 1970s (in the U.S., there was no official platinum coin until 1977) when the platinum 1 oz coin with the American Eagle was first presented.

So, where are platinum and palladium prices headed? Experts predict that demand for precious metals is predicted to surpass supply by 2021. Investors should expect the platinum and palladium price per ounce to increase.

Should You Invest?

Precious metals are a great way to diversify your investment portfolio. Although there are slight differences between silver vs. platinum vs. palladium, they are all tangible commodities that generally hold their value.

The key to achieving success with these three precious metals is understanding the risks and knowing your goals before you sign the deal. Every investment move comes with risks, and being familiar with them will help you decide which metal is best to invest in.

Prices for metals can drop during market crashes. In times like these, finding a buyer may be challenging. On the bright side, however, they may grow and enrich your portfolio. Either way, owning precious metals never goes out of style.