What You Need To Know To Get Started Investing In Palladium
When investing in precious metals, investors often think of silver and gold. However, another metal that is even rarer you can invest in is palladium. You may wish to invest in this precious metal so you will be able to diversify your portfolio.
Common Uses for Palladium
Palladium is a metal that primarily is useful within the automotive, electrical, and dental industries. It is used to make jewelry. This metal is mostly found in South Africa and Russia. Due to pollution laws, catalytic converters are expected to contain a larger percentage of palladium, and this is leading to the value of this metal going up.
Palladium Is in Demand
Because of the growing demand, there has been pressure to find new sources of palladium. This is especially a problem since palladium is usually produced as a byproduct of other mining activities.
Palladium Might Go Up in Price
If you purchase this precious metal, the value of the investment is likely to go up. When there is a supply squeeze, the value of palladium sometimes exceeds that of gold. If you are considering purchasing palladium or platinum, you might choose palladium if you would like to expose yourself to greater risk and reward due to the wider price range. Palladium also goes up in price in part because of speculators.
Palladium Should Be Part of an Investment Portfolio
While palladium can be a great investment, it's important to have palladium as part of your investment portfolio rather than your only investment. This is a market that can be difficult for a retail inventory to gain access to because there are not a lot of exchange-traded funds that are available.
One way to invest in palladium is to purchase palladium coins. For example, you could purchase the Canadian maple leaf coin. By purchasing this coin, you will be purchasing a coin that is minted according to the standards of the Royal Canadian Mint. The Canadian government will guarantee weight, value, and purity.
Another option is to purchase a palladium bar. Palladium is converted into a bar for storage or to transport the palladium. When purchasing coins or bars, you have the option of keeping the investment on your own property or hiring a professional company that will store your palladium in a secure location until you wish to trade it. Therefore, you have many options available when investing in this type of precious metal.
Contact a financial advisor for more information about precious metal sales.