Much of the discussion of platinum also applies to palladium—particularly with regard to uses and investment opportunities. Like platinum and silver, palladium is a precious metal whose primary uses today are industrial. And like all precious metals, palladium’s price in dollars (and all other currencies) rises and falls, thus offering many opportunities for investment.
Palladium is the least well-known of the four precious metals, and has much in common with platinum: It is a beautiful white metal, has been alloyed with gold to create “white gold,” and is a latecomer to the precious metals group after being discovered in the 19th century, and is a member of what is called the platinum group metals (PGMs), which also include rhodium, ruthenium, iridium, osmium, and of course platinum. Also, like platinum, palladium’s primary use today is in catalytic converters—though the former is used mostly in gasoline-powered vehicles, while the latter is used in diesel-powered vehicles.
Because over half of all palladium mined each year is used in catalytic converters, and because Russia is the biggest source of palladium, the price has undergone some significant ups and downs in recent years—selling for less than $600 in January 2016 and briefly for over $3,400/oz. in March 2022. The market remains strong, however, as palladium is also useful in the chemical, electrical, jewelry, and dental industries.
As with platinum, McAlvany Precious Metals typically advises the use of palladium coins and bars as vehicles for ratio trading vis-à-vis gold.
However, with billions of dollars worth of palladium trading freely on exchanges and other markets each year, the metal is worthy of consideration for its own investment merits.
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