Discovered in 1803 by William Hyde Wollaston, Palladium (Pd) is a rare metal found both in the earth’s crust and in asteroids. Its name, which is derived from the Greek “Pallas,” the Goddess of Wisdom, came from an asteroid (also named Pallas) which was discovered around the same time. Derived from natural mines, alloyed with gold, or produced from nickel and copper ore deposits, palladium metal is a unique commodity on the earth, making it a rare find.
When precious metals are discussed, the most common ones named are gold, silver, and platinum. It’s unfortunate that palladium metal is the least appreciated of the precious metals, but it is one of the most notable: its spot price has significantly increased more than other precious metals in the past few years, even rivaling the price of gold. If you already possess a precious metals investment portfolio but are uncertain of what to invest in next, palladium metal might be the next step for you. Current market expectations see palladium metal becoming increasingly rare in the coming decades, so you might be able to make a pretty penny by thinking ahead. Unsure of where to begin when investing? Here are three palladium metal investment options you should consider.
Palladium Bullion
Just like investing in gold and silver bullion, investing in palladium bullion offers a secure, cost-effective way to get your hands on a physical asset. With expectations of the rare precious metal becoming increasingly difficult to come by in upcoming years, it would be smart to begin investing in the precious metal before it becomes more expensive. An avenue like this allows for investments in small quantities of the metal. Like with any precious metals purchase, you’ll want to make sure you are purchasing from a reputable seller.
Palladium Bullion Coins
Similar to palladium bullion, palladium bullion coins provide investors with another option to own physical assets of the precious metal, all while being able to buy it in smaller quantities. This might seem like one of the most lucrative options for investors, as coins are easy to buy, sell, and trade both within the market and with other precious metals investors. Provident Metals’ coins are .9995 fine palladium, which can be difficult to come by when searching the palladium market these days. This is an investment you can trust—one to provide you with security for the future while leaving you with options for now.
Palladium Stocks
Besides physical assets, investors can consider seeking out the more traditional avenue: the stocks of palladium companies. However, it should be stated that this is a difficult avenue for some investors to take, as palladium-centric companies can be difficult to come by. There are only a few palladium mines around the globe, with most mines—like platinum reserves—existing in South Africa. For North American investors, there are two options available to you when considering stock options: North American Palladium and Sibanye-Stillwater.
Palladium-Backed Exchange Traded Funds
Similar to the traditional route of buying and trading stocks, exchange-traded funds (ETF) are another avenue that palladium investors should consider. If you are unaware of what an ETF is, it basically works like an index fund, but where palladium shares are traded similarly to stocks on an exchange. Palladium metal ETFs are traditionally set up to track the performance of palladium prices over time, while most exchanges will hold large quantities of the metal on reserve. Two common North American ETFs for Palladium are the Sprott Physical Platinum and Palladium Trust and ETFS Physical Palladium Shares.
Investing in precious metals can make for notable gains in the long term, but it can also prove to turn itself into an exciting hobby—from closely watching spot prices of the metal(s) you’ve invested in to collecting commemorative bullion coins released by national mints. If you’re interested in investing in palladium metals but are still unsure of where to begin, need help with research, or need more information as to how it can increase the value of your portfolio, don’t hesitate to reach out and contact one of our many representatives here at Provident Metals!
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