WHY SHOULD I INVEST IN PALLADIUM?
Palladium is a sister metal of platinum and is grouped together with the platinum group metals, also recognized as PGM. The other metals in this group are platinum, rhodium, ruthenium, osmium, and iridium. Palladium was actually only discovered in 1803 after dissolving platinum in acid! It is the least-dense of this entire group, and it also has the lowest melting point. Additionally, palladium is significantly rarer than platinum.
Palladium is highly malleable and does not tarnish in the air, which is why it is so coveted for jewelry and industrial purposes. In comparison to platinum, it is softer while simultaneously ductile and rust resistant. Since there is an increasing demand for both platinum and palladium, this makes any of the platinum group metals a very appealing choice for investors.
Palladium is also usually used in making white gold, and the jewelry industry consumes as much as 19% of the world’s palladium production. However, the automotive industry also consumes palladium at an increasing rate to comply with the Paris Climate agreement. This metal is particularly good for catalytic converters since it reduces emissions more efficiently. It is also a great metal for recycling and filtering water.
WHAT IS THE PALLADIUM SPOT PRICE?
The palladium spot price refers to the current price per troy ounce of raw palladium worldwide. However, the spot price of palladium fluctuates every second. This depends on supply and demand, as well as other factors such as the health of the stock market.
WHY SHOULD I CARE ABOUT THE PALLADIUM SPOT PRICE?
Keeping up with recent details about the palladium spot price will help you make the most informed decision possible about when to invest. Since palladium is rarer than platinum and its biggest source of demand is the automobile industry, any fluctuation in supply and demand there can significantly alter its price per ounce. Bullion Exchange alerts are useful for navigating the price of palladium per ounce in this often volatile and unpredictable market. You can also opt in for notifications on the palladium spot price. This way, you do not have to worry about the best time to buy.
HOW IS THE PALLADIUM PRICE PER OUNCE DETERMINED?
The price of palladium per ounce is determined by several factors. Palladium is most commonly used in the automobile industry as a key part in catalytic converters. As such, the health of the auto industry and its demand for this metal weighs heavily on the palladium price.
There is also a significant demand for palladium in the medical and electronic industries. Therefore, both of these industries can also affect the palladium price per ounce. The major suppliers of palladium are Russia and South Africa. So, if there is any political instability, natural disaster, or economic turmoil in these countries, then the palladium price per ounce might rise or fall.
WHY DOES THE PRICE OF PALLADIUM CHANGE OFTEN?
The price of palladium, as well as other precious metals, changes often due to numerous natural and manmade factors. These include, but are not limited to, the following:
Current political events, especially in Russia and South Africa
Please note that unlike gold and silver, the palladium spot price may increase or decrease alongside the stock market. This is particularly the case because it is a precious metal with demand primarily stemming from industry. If those industries do not perform well, it is possible that demand will fall for palladium. Although the palladium spot price may also fall, it still sees a degree of demand as a safe haven asset. So while the palladium price is not always easy to predict, this is what makes the metal a great diversifier.
CAN I BUY PALLADIUM AT THE SPOT PRICE? WHY DOES PALLADIUM BULLION COST MORE THAN THE SPOT PRICE?
You cannot usually buy palladium at the spot price because of several factors. The spot price does not account for manufacturing, minting, refining, storing, distribution, and other costs. Any company selling palladium bullion adds a small additional fee to it for every purchase for this reason. This additional fee is known as a premium.
The premium is the total cost for palladium coins or bars, and includes both the metal’s raw value as well as several other factors needed for sale. Coin premiums are also based on each coin’s design, rarity, and limited mintage, which can all raise the price above spot. Therefore, it might be more cost effective to purchase palladium bars instead of coins or rounds.
Although the spot price of palladium will be the same throughout the world, the premium can vary from dealer to dealer. Rest easy knowing that Bullion Exchanges always offers the lowest premium possible for all of our palladium products. Additionally, we may occasionally run deals at our discretion for buying palladium at or near the spot price. Subscribe to our newsletter to stay updated on these special offers.
ARE PALLADIUM PRICES THE SAME NO MATTER WHERE I LIVE?
The palladium price per ounce is the same throughout the world. It is a constantly moving, yet globally fixed, price to prevent any kind of arbitrage. The price of palladium in the United States is therefore the same as in any other country, like the United Kingdom, Australia, France, India, and China. The palladium spot price displayed here is in US dollars.
ARE PALLADIUM COINS LEGAL TENDER?
Yes! For example, the Palladium American Eagle coin has a face value of $25 USD. The Canadian Palladium Maple Leaf coin carries a face value of $50 Canadian dollars. However, palladium coins are valued for much more than their legal tender. Metal type, purity, weight, design, and mintage all drastically affect what a palladium coin is worth. If there are any other special features on the palladium coin, this may also increase the price.
WHAT IS THE DIFFERENCE BETWEEN AN OUNCE AND A TROY OUNCE WHEN LOOKING AT A PALLADIUM SPOT PRICE CHART?
The troy ounce is the standardized global weight system for all precious metals. The US Mint adopted it in 1828 to have a standard unit of measurement for our coinage.
The troy ounce has its origin in the Troyes town of France, which was a bustling trade market in its day. The troy ounce is 2.75 grams greater than the regular ounce. The regular “Avoirdupois” ounce contains 28.349 grams, whereas a troy ounce contains 31.103 grams. Although the difference is not high, it becomes important when buying or selling precious metals in bulk.
DO I PAY TAX WHEN I BUY PALLADIUM?
Every state has its own legislation relating to palladium buying. Some states charge sales tax on physical precious metals. Additionally, as of late 2019, some states have mandated that online retailers must collect sales tax on their behalf for certain precious metals shipping into their state.
For NY, there is a statewide sales tax of 4%, and there may possibly be a local sales tax on top of that. However, it is possible for tax exemptions to occasionally apply. Please review our tax page for more information on each state regarding sales tax policies.
WHAT ARE BID AND ASK PRICES?
The bid price is the current maximum price at which you can sell your palladium. The ask price is the current minimum price you can buy palladium.
The difference between the bid and the ask price is the bid-ask spread. If you plan on selling your palladium to a dealer, they will buy it from you at the bid price. Conversely, if you plan on purchasing palladium, they will sell it to you at the Ask price. The spread will be the dealer’s profit. The ask price will always be higher than the bid price, but the two should not vary greatly in percentage.
HOW DO I BUY PALLADIUM?
Palladium bullion can be bought in the form of coins, rounds, and bars. Therefore, there is flexibility in investment options. It is becoming a very popular investment vehicle that offers strong diversification, a hedge against inflation, and carries strong upside price potential. When you want to buy palladium, your options are physical bullion, mining stocks, and ETFs. However, if you are expecting to own palladium bullion, only buying it in physical form will give you the right to physical palladium.
CAN I ADD PALLADIUM TO MY IRA?
Depending on your IRA custodian, you might be able to buy palladium for your IRA. Bullion Exchanges works with several IRA custodians to make this process easier. Diversification is one of the wisest investment methods, but nevertheless, not every palladium bullion may qualify for your IRA. Make sure you know what qualifies before committing to your palladium purchase.