Investing in Palladium

Investment Ideas: 5 Ways to Start Investing in Palladium

Featured image by Tumisu from Pixabay

The world of palladium investing has been much quieter than those for gold and silver. Despite flying under the radar compared to other precious metals, palladium is an extremely valuable metal that is highly prized in the jewelry, dental, and manufacturing industries. Palladium supplies have ebbed and flowed over the past few years, driving up demand for the metal as supply chains ran into trouble. 

Russia and South Africa are two of the globe’s leaders for palladium mining. However, operations have stalled in the latter due to strikes and political turmoil. Uncertainty has caused companies to cut back on investments in palladium production facilities. This began driving up the price of the metal due to the complex mining and refining process. 

Despite the issues plaguing the supply chain, savvy business investors still have a number of ways to buy palladium. Traditional coins, bars, and rounds are popular options, while newer avenues like palladium ETFs and palladium-backed stablecoins offer buyers a variety of unique ways to diversify their portfolio. Here are five of the best ways to invest in Palladium:


1. Palladium Coins 

Coins minted by national governments remain the most popular way to invest in bullion. These items are valuable due to their beauty. They also provide a sense of security. This is because a national mint produces and backs them. Both the U.S. and Canadian Mints, along with a few others, offer a palladium one-ounce coin produced with the precise standards that other coins are held to. Palladium coins minted by national governments are extremely liquid, a beautiful collector’s item, and are an appealing investment in a small bullion market. Palladium coins are a great option to invest in.

2. Palladium Rounds

Private mints create palladium rounds to invest in, not a government. Bullion collectors value rounds because they can often be bought closer to the spot price of the precious metal, and are also extremely liquid. Rounds have the possibility, depending on the design, to be extremely collectible in their own right. This means some palladium rounds might even end up being more valuable than the spot price of the actual metal. Rounds are an easy way to add a touch of uniqueness to a portfolio.

3. Palladium Bars

Palladium bars are best for investors who are interested in buying larger amounts of the metal. A refiner stamps the manufacturer, purity, and the weight onto the bars. They are the best way to get the lowest per-troy ounce price of palladium, especially as the bar’s weight gets higher. Bars are transportable and easy to store and trade due to palladium’s high spot price. The palm of a hand can easily hold thousands of dollars of palladium.

4. Palladium-Backed Stablecoins

Cryptocurrencies, like Palladium Coin, offer investors a unique way to invest in precious metals. Through crypto-backed stablecoins, buyers can purchase fractionalized ounces of palladium digitally and maintain the option to buy, sell, and trade coins. They can also redeem digital holdings for physical, pure palladium at any time. 

5. Palladium ETFs

Some ETFs track the spot price of palladium in a manner similar to an index fund. Examples of palladium ETFs include the Sprott Physical Platinum and Palladium Trust. The Trust holds physical bullion at a federal crown corporation of the Government of Canada. Palladium ETFs give investors who are seasoned in the traditional stock market the chance to diversify their portfolio and digitally track the spot prices of a valuable metal. Trading of ETFs is similar to trading stocks. 

A Variety of Ways to Invest in Palladium 

Entrepreneurs interested in adding palladium to their portfolio have a number of ways to do so. Palladium only continues to rise in value as more and more people understand its usefulness and rarity compared to silver and gold.