Palladium is one of the platinum group metals (PGMs) alongside ruthenium, osmium, iridium and rhodium. More than a quarter of all goods produced today contain one of these metals. Palladium is especially valuable for its use in the automobile industry. Palladium is very difficult to extract, as large amounts of nickel and copper ore must be processed to obtain only a small amount of palladium. The other metals processed with the palladium help make the process profitable.  Relatively new to the investment scene, palladium is an intriguing option that's worth investigating further. Learn more about the history of palladium to get a better understanding of where this metal is likely to go in the future.
Palladium is unique from other precious metals in that its industrial uses are far greater than its investment opportunities. However, when considering a precious metal for purchase, it's worth making a note of one that's purportedly been stockpiled in Russia and China for its usefulness. If you're interested in investing in palladium, there are several factors that you'll want to consider as you identify the right timing for a purchase. The price of palladium is influenced by:
Palladium's history is far shorter than that of other precious metals like gold, silver and platinum. Palladium's discovery came later in history, and it took nearly 200 years for this metal's true value to emerge. Consider these key moments in the history of palladium:
Understanding the many and varied uses for palladium will help you better judge this metal's price and investment potential. This is a unique choice for any portfolio because one can readily see how a variety of global industries could impact the price of palladium and cause it to rise. Automobile manufacturers use about 80-85% of the palladium on the market. This palladium is used in catalytic converters for car exhausts. Palladium turns various pollutants into carbon dioxide and water vapor, making it a valuable element in today's eco-conscious market. China is tightening regulations on automobile pollution, and demand for gas-powered vehicles is growing in Europe, all of which creates a greater demand for palladium. [1, 7] Though it didn't catch on immediately, palladium has steadily gained interest in the jewelry market. Palladium jewelry is 95% pure. It's 12% harder and 40% lighter than platinum.  Palladium has been used in numerous other industries for: [1, 2, 3]
If you're interested in investing in palladium, there are several options available to you. You can purchase palladium bars, bullion and coins. You can also purchase palladium futures contracts in the hopes of benefiting from future changes in palladium prices. Stock in palladium mining and production companies or ETFs that track palladium offer entry into this market as well. Consider your approach carefully to yield the greatest benefit from your exposure to palladium.
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7. Harriet Kelsall. Palladium a Bit of History, https://www.hkjewellery.co.uk/articles/palladium-a-bit-of-history. Accessed September 2, 2020.
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9. Aberdeen Standard Investments. 'Precious metals' place in a portfolio,' https://www.aberdeenstandard.com/docs?editionId=20de5b25-5e53-439b-b4e5-871b3d1eb17.. Accessed October 23, 2020.
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11. The Washington Post. Why Palladium Is Suddenly a More Precious Metal: QuickTake, https://www.washingtonpost.com/business/energy/why-palladium-is-suddenly-a-more-precious-metal-quicktake/2020/01/20/b4983110-3bd1-11ea-afe2-090eb37b60b1_story.html. Accessed September 2, 2020.