Palladium Guide: Facts & FAQs
Emerging as an immensely valuable precious metal, palladium is not only hard to get one’s hands on but is also desired by both collectors and investors with a fierce intensity. From reducing pollution to stabilizing investment portfolios, this ever-popular metal has a price far higher than that of gold. Palladium is poised to be the metal of the future and certainly a metal that every investor should be sure to pay attention to. In this article, we will help you understand what palladium is and why it is becoming increasingly valuable in today’s society.
What Is Palladium?
Palladium is a beautiful, shining silver-white metal that was first discovered by William Hyde Wollaston, a chemist from England, in 1803. The metal got its name after the unfortunate Pallas of Greek mythology who was killed by the goddess Athena. Palladium, along with other elements like iridium and platinum, belongs to the platinum group metals (PGMs). While all of the metals in this group share certain similarities, palladium has the lowest density and melting point. Another interesting feature about palladium is that it does not tarnish when exposed to air because it won’t react with oxygen in normal temperatures.
Where Is Palladium Found?
Deposits of palladium ore are very rare, making this metal all the more valuable. The Transvaal Basin in South Africa and the Norilsk Complex located in Russia are known to hold the most palladium. Those are not the only locations that this metal can be found, though. Palladium has also been mined in areas of Montana and Ontario, Canada.
Mining is not the only way to secure this precious metal. Palladium can also be stockpiled through recycling. Recycled palladium typically comes from scrapped catalytic converters, which are automotive parts that help reduce toxic emissions from vehicles. Palladium’s many uses juxtaposed with its limited sources create an investment of high interest.
Is Palladium More Expensive Than Gold?
It may come as a surprise to some, but palladium is, in fact, more expensive than gold and silver. For nine years in a row, the supply of this silver-white metal has not met with the ever-increasing demand for it. It has not been the case with gold. As of the time this article was written, the price per gram for gold was only $50.47; however, you would have to pay a whopping $76.68 if you wanted to get your hands on a gram of palladium. Palladium is quickly becoming the world’s most desirable precious metal, and the price tag confirms it.
Why Is Palladium So Expensive?
The price for palladium is skyrocketing because the current output of this metal simply is not able to meet the clamoring demand for it. It is an amazingly useful metal that can be used by automakers to meet their government’s environmental regulations. Usage is increasing as governments, especially China’s, tighten regulations to crack down on pollution from vehicles, forcing automakers to increase the amount of precious metal they use. Following revelations that makers of diesel cars cheated on emissions tests, consumers in Europe bought fewer diesel cars, which mostly use platinum, and instead chose gasoline-powered vehicles, which use palladium.
What Is Palladium Used For?
Palladium may not be the metal most frequently utilized in the creation of coins, but it is an essential element in other aspects of today’s bustling society. The automotive industry is one such field that uses quite a bit of palladium. This metal is applied by automakers to make an engine’s catalytic converter, which serves a very important purpose. Catalytic converters reduce the toxicity of the engine’s exhaust. While palladium isn’t the lone metal that can make these converters, it is one of the most economical choices. It is also incredibly reliable. Really, any industry that relies upon machinery will find a use for palladium. Other industries that utilize palladium include commercial airlines, the transportation industry, manufacturing, aeronautics, and even agriculture.
Has Palladium Been Made Into Coins?
Yes. Palladium maple leaf coins hail from Canada. They are a variety of bullion coins, and each one is worth an impressive 50 Canadian dollars. Palladium and other metals, like silver and gold, have always acted as financial security for investors, especially in times of roiling economic conditions. When the 2008 recession descended like a black cloud, palladium coins surged in popularity as a desire for palladium grew. Those individuals with the means to invest in precious metals sought out palladium as a way to add more diversity to their investment portfolios. Palladium coins were also sought after because they could integrate them into IRA accounts. This ability of palladium to act as a tool to fend off financial instability is what spurred the reproduction of the coins again in 2009.
Is Palladium a Good Investment?
There is no limit to the reasons any investor should be sure to have a few precious metals in their investment portfolio. Palladium should prove to be a particularly good investment as there is some suspicion that while supply sources for this metal will be hard to come by, there will be a mass growth for it in industrial sectors. The calculation of high demand plus low palladium supplies equals a very high price for this rare metal. It also doesn’t hurt that palladium is a great way to fend off times of financial struggle.
As you’ve learned, palladium, while it may be hard to come by, is an excellent precious metal to invest in. Now, if you’re a coin collector or investor, seeking out palladium will serve as a means to increase your portfolio’s diversity, strengthen your IRA, or add a touch of sophistication to your collection. Since palladium is rapidly growing to become one of the most sought-after metals in the world, there’s a high probability that its price will only grow. If you think palladium is the investment for you, then contact Americash Jewelry & Coin Buyers. We have the advice you need on precious metals and how to expand your portfolio.