Investing in a thematic ETF related to palladium will give you good exposure to many of the main players in the sector, and should also hedge your risk to a certain extent if the prices do fall. Geopolitical Concerns – This factor can be active on a number of fronts for palladium and is something you should investigate prior to investing. Much of the world’s palladium supply comes from Russia, and South Africa. With that said, any interruptions to this supply or process, be it in the form of sanctions as Russia sometimes deals with, or power supply problems, can cause a fluctuation in prices. Here we will show you what the palladium market is all about, how you can get into trading this precious metal, and why it may be a great addition to your portfolio.

  • However, gold prices can experience significant short-term fluctuations influenced by factors such as interest rates, central bank policies, and investor sentiment.
  • However, geopolitical tensions and supply constraints have sometimes led to fluctuations in its price.
  • Similar to palladium ETFs, you can also purchase palladium-linked stocks.
  • From breaking news about what is happening in the stock market today, to retirement planning for tomorrow, we look forward to joining you on your journey to financial independence.

As of my writing, it has consistently outperformed traditional investment metals like gold and silver. Given the rising demand and supply constraints, this trend is projected to continue. The stable prices of gold and platinum make them safer investments than other commodities and also better stores of value than stocks during a recession. For instance, the easiest way to improve the stability of your portfolio with a gold investment is to buy a gold commodity ETF. You have to understand that palladium bullion as an investment must be considered in like of how other people look at investment options.

Future Prospects and Risks

The auto industry accounts for around three quarters of the global demand for palladium. This is due to the fact that palladium is a key component in the manufacturing of catalytic converters. This, and particularly the demand for vehicles in large markets like the US and China have a huge bearing on the price of palladium.

  • Effective at the commencement of trading on December 13, 2023 the Company will begin trading on the Canadian Securities Exchange under the new name, and existing stock symbol “BULL”.
  • If you ever bought a car in the United States, you bought something with palladium in it.
  • In January 2016, platinum traded at a 7-year low of $820 and palladium rose slightly to $500.
  • We recommend speaking with your financial advisor before taking any action.

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This Precious Metal is 30 times rarer than Gold, 15 times rarer than Platinum and 100 times more rare than Silver. Palladium is also a more recently discovered Precious Metal when compared to Gold, Silver and Platinum, having been found in 1803, adding to its rarity. They buy it because it’s cheap relative to its value, because they’re enthusiastic about its future prospects, and so on.

What are the best ways to invest in palladium?

This weakening dollar can certainly have an impact on palladium prices as it does on other precious metals, though the reasoning behind it may be different. Any downward movement in the Dollar has potential to act as a disincentive top suppliers. This can reduce the supply of the precious metal which in turn can lead to an upward price movement. Palladium’s demand is primarily driven by its use in catalytic converters. As automobile sales continue to grow globally, especially in emerging markets, the demand for palladium is expected to remain strong.

Palladium’s Very Strong Industrial Base

Palladium is a lustrous white material, one of the six platinum-group metals. This metal is rare and has unique properties, making it incredibly valuable. It’s highly conductive, resistant to corrosion and wear, and excellent for various industrial uses. Although palladium is now at a higher price point than gold, it is still very much an investment that any type of trader can make. Like other precious metal investments, it is something you can use to add great diversity to your portfolio.

It is stronger than platinum and has a wide range of uses, from dentistry to automotive to manufacturing to electronics. The price of palladium has increased significantly since its widespread use in the 1990s. Investing in palladium can be done through purchasing it physically as well as through ETFs.

Investing in Palladium vs. Other Precious Metals

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A palladium ETF solves that by allowing you to invest without dealing with the underlying commodity. Having greater liquidity than palladium futures and eliminating the hassle of dealing with physical palladium is what makes a palladium ETF investment so much more convenient. However, you’ll want to pay attention to the expense ratio of commodity ETFs you invest in since high fees can be a downside. Before starting the rollover process, find out how to avoid shady custodians and how to SAVE MONEY on your precious metals investment in your retirement. Save thousands of dollars in hidden fees and avoid any potential issues when investing in precious metals with this guide.

The auto industry has the highest demand for palladium, making it the top influencer of palladium prices globally. While less popular than the other three most precious metals, it is now considered an essential store of wealth and an industrial asset. Investing in palladium may result in a lot of benefits in the near future. Usually, when people think of the phrase “precious metals” as investments, they often think of only three things. Ask a typical investor which metals constitute investment precious metals and you will get the big three. Palladium is a rare, silver-colored precious metal and falls under the commodity category.