First-time investors in precious metals could be forgiven for their ignorance of this rare commodity, but experts in the industry have long been aware of the industrial demand, and enduring value of, the material.
While financial advisers rave about the potential for gold and silver stocks; as part of a diversified portfolio, savvy investors are looking towards palladium and its sister metal platinum as even safer bets to hedge against growing economic uncertainty.
What Is Palladium?
Palladium is a soft metal with a silvery white appearance that it shares with various other members of the platinum metal group, including rhodium and osmium.
The metal was first discovered in 1803 by William Hyde Wollaston as a result of an experiment carried out to purify platinum ore. While the metal initially had no particular commercial use, over time the scientific community began to notice the material for its unique abilities to withstand corrosion, tarnishing and chemical degradation.
Today palladium is a vital component in numerous industries, from catalytic converters to capacitors used in smartphones, laptops and other electronics, and of course, jewelry; palladium is a metal that’s utility is only set to grow as technology advances.
Why You Should Add Palladium to Your Investment Portfolio
The first thing to note is that palladium is an incredibly scarce resource when compared to other precious metals. Annual production of both platinum and palladium only amounted to 440 tons last year, with the latter being 15 times rarer than the former. Additionally, palladium is only mined in select locations in South Africa, Zimbabwe, Russia, Canada and the US.
Secondly both palladium and platinum are stable commodities with a constant commercial value linked to their utility in manufacturing. In fact with rising demands for lower emissions in automobiles; across the developing world, demands for palladium will only rise in the near future. In addition to this rising demand for the metal in vehicles, both Russia and South Africa have faced difficulties in matching their supply to rising demand. With supply problems and production issues, aplenty palladium is looking like an increasingly strong bet for investors.
To be clear palladium and platinum should not replace gold as the primary precious material in an investment portfolio. But devoting a percentage of your capital to buy the substance through online portals such as Gold Stackers Melbourne should reap huge rewards down the line.
How to Buy Palladium
Just like gold, silver, and other precious metals; palladium is available in bullion-form at common market prices. Look for bars that are embossed with a manufacturer’s signature guaranteeing their purity; these should be available for prompt delivery. Unlike larger gold bars, palladium bullion is small and easy to store privately.
We would recommend against purchasing from any dealer that offers a paper substitute in lieu of actual palladium, such investment vehicles carry significant counterparty risk and may result in losses due to poor management.