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5 Interesting Facts about Investing in Palladium

 

Palladium is one of a portfolio of Precious Metals, used within both industry and as an investment, much like Silver in its dual nature. It was ‘discovered’ by a gentleman called William Hyde Wollaston in 1803 and in the late 1800s, Palladium metal used to have more economic value than Platinum (Compare Metals).

“As with all precious metals, palladium faces its own round of volatility and is not quite trailing its sister metal platinum. Charles Gibson, director of mining at Edison Investment Research, says historically, platinum and palladium prices have been closely aligned. "However, of late, platinum is behaving more and more like a precious metal, while palladium is behaving more like an industrial metal of a high price." In theory, given its direct connection with the industrial demand, predicting palladium's decline should be easier than gold and silver, says Charles Long, mining analyst at Beaufort Securities.”

However, Long continues, “potential buyers must note that palladium remains a specialist metal. It correlates strongly to industrial demand, but those familiar with the highs and lows of gold as an insurance hedge would need a different mindset when it comes to trading palladium, a precious metal that's not in public eye as much as the yellow metal."

 

So, to begin that process here’s a little information to whet your appetite regarding investing in Palladium with Bleyer.

 

1) What is Palladium?

Palladium is both a precious and an industrial metal, much like its cousin Silver. White Gold jewellery is made, for example, from mixing Gold with Palladium. “The explosive growth in popularity of white metals over the last decade (particularly white gold and silver) creates a unique opportunity for palladium jewellery. Palladium offers a more radiant white than white gold, as well as many of the desired characteristics of platinum without platinum’s price. This trend is strongest among the new generation of fine jewellery consumers. 73% of 18 – 24-year-old adults prefer white jewellery compared to 40% in the 25+ group." (Kitco) Palladium is also used in the medical field, dentistry, and catalytic converters. 

 

2) Palladium is one of the rarest precious metals on earth

“Roughly about 15 times more rare than its sister metal Platinum, and around 30 times rarer than Gold. The bulk of the world's palladium is mined in Russia (41%) and South Africa (38%). Canada, US and Zimbabwe are other major producers. Decrease in production from the aforementioned can contribute to price spikes, and over the last decade there has almost always been a persistent supply deficit.”(IBT) So, watching events in these countries may aid an investor in the future price moves of Palladium. 

 

 

3) Recent price increases in Palladium have out-stripped Gold, Silver, and Platinum. 

Recent price increases in Palladium have out-stripped Gold, Silver and Platinum. “In 2016 Palladium increased 33%,” outpacing all three of its better-known relatives. (International Business Times)

 

 

4) A Brand new Palladium Bullion 1oz Coin coming in September 2017!

This is an extremely noteworthy development in an otherwise fairly narrow investment access to this precious metal. “The release of the first 2017 Palladium 1 oz American Eagle Coin Coin is a significant moment in American coinage, which will take the most recognized and demanded American Eagle series into the new field of the precious metals industry. After seven years of studies and development, the US Mint announced that it will launch its first ever Palladium American Eagle in September 2017. This new program will be the first major change to the Eagle program since the release of Platinum American Eagle in 1997” (Bullion Exchange). This precious metals development will be of keen interest to both investors and collectors alike, as a proof version will become available in 2018. Even as we enter September an exact release date is still yet to be announced. Frankly, to the investment metals market, this is probably more exciting than this month’s equally shrouded release of the latest Apple iPhone - and arguably a smarter investment! Crucially, the new US Palladium Eagle Bullion Coin can only – by US law – be made with American sourced Palladium, thus ensuring this new Precious Metals investment coin is not dependent on Russian Palladium (Wealth Daily). Interesting.

Although we cannot currently source the Eagle Bleyer can offer the Canadian Maple coin in both Platinum and Palladium at very competitive rates.

 

 

5) Future Price Rises 

The one factor that initially gave me hesitation in Palladium’s Investment legs was that 55% of the current usage of Palladium is within the catalytic converter market. With a massive push for more electric cars globally, would this cause a fall off in demand for Palladium? Electric cars don’t produce harmful emissions. But here’s the appealing and somewhat geeky inside track: “It has been identified that the demand for Palladium is drastically increasing in the recent years because of its application in automobile industry especially in the functioning of electric cars. The modern automobile technology has paved the way for the venture of pollution free, zero emission cars known as electric cars which function either with the help of frequently charged batteries or the hydrogen fuel cells.” Skip this next bit if you’re not interested in the ‘technicals’ but this is good to know if you are. Electric cars need Fuel Cells: “In general, a fuel cell consists of two electrodes with an electrolyte sandwiched in between. Hydrogen passes through one electrode and Oxygen passes over other yielding water, heat and electricity. However for this to happen we need certain elements known as enablers or catalysts to make the hydrogen present at the anode split into protons and electrons and react with oxygen. The issue with the hydrogen fuel cell cars was with their cost due to the usage of the most expensive metal Platinum as the catalyst. However, Palladium has proven itself an excellent catalyst replacing Platinum thereby reducing the cost of electric cars based on hydrogen fuel cell technology (Popular Science).

 

 

Today’s Palladium Price News just in today

Palladium continues its steady yet undeniable march upward. The platinum-group metal (PGM) crushed it with yet another recent high, ending up above the $900 per ounce level as of Sept. 1. As of this writing, palladium is holding on to that increase, still hovering near that level.” (Investing.com, 13/09/2017)

 

So, why not take a look at current investment opportunities in Palladium? As always, we recommend our clients conduct their own thorough and additional research. Bleyer currently offer 50g, 100g, 250g and 1oz Palladium investment bars and a 1oz Palladium Canadian Maple coin.

 

Call or email Bleyer now to express your interest in the new American Eagle 1oz Palladium coin coming soon 01769 618618 or [email protected]

 

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