How to Buy Palladium: 5 Guidelines for Buying Palladium Bullion
Key Takeaways
- Purchase only palladium at the current spot price plus a markup to avoid being scammed, as dealers usually don’t sell it below this price due to its scarcity.
- Don’t hesitate to pay the assay fee when buying palladium, as it’ll help prove your investment’s value if you sell in the future.
- Platinum bars are particularly cost-effective and convenient, while American Eagle palladium coins are popular. Both are easy to store at home, in a bank, or in a third-party facility.
Silver and gold are no secret to you, and platinum is relatively familiar — but palladium? That’s like a foreign term.
Now couldn’t be a better time to get familiar with it — and start investing in it.
One of the six metals in the platinum group, palladium is a precious metal known for its white, shiny appearance. Discovered in 1803, it’s available in various solid forms and can be a wise investment, since this scarce metal, found in just a handful of countries, is in demand for use in today’s technologies. Its price often moves independently of platinum, silver, and gold, making it an ideal way to diversify your portfolio and reduce risk.
If you’re at the point where you’re weighing your palladium bullion buying options, here are five tips to keep in mind, brought to you by the precious metals experts from First National Bullion, the palladium, platinum, silver, and gold dealers Scottsdale collectors rely on for outstanding quality and service.
1. Be Wary of Offers Below Spot Price
Palladium is rarer than gold and silver. In fact, it’s one of the rarest precious metals on Earth. You’ll likely find trustworthy purchasing opportunities only at the current spot price plus a reasonable markup.
If you find offers for palladium bullion below the spot price, be cautious. Most reputable sellers don’t lower prices below spot for this particular precious metal because of its rarity.
2. An Assay Fee Included with the Palladium Purchase Can Be Beneficial for You
It’s fairly common for reputable precious metals dealers to also charge assay fees. This ensures the authenticity and purity of the palladium bullion you purchase.
The assay results will also provide reliable documentation for your purchase. Besides, you can always use this information as proof of your investment’s value if you end up selling your palladium in the future.
3. Palladium Bars Can Be a Smart, Cost-Effective Purchase
As with other precious metals, there are multiple buying options for palladium bullion. One of the most convenient and effective ways to buy palladium in solid form is to purchase palladium bars. Buying palladium this way is often recommended, since bars are:
- Easier to store and transport
- Often available at lower premiums over spot price
- Clearly marked with their purity
Palladium can be purchased as coins and rounds, too. Just be aware that rounds don’t have any face value like palladium coins do. However, the value based on palladium content is the same.
4. American Eagle Palladium Coins Can Be a Smart Investment as Well
Having a face value of $25 and a purity of 99.95 percent, these coins are the official palladium bullion coin in the United States. Featuring a design that’s been appealing to collectors and buyers since the early 20th century, these coins remain popular in the precious metals world.
Plus, American Eagle Palladium coins are easier to store and display. They’re available in three versions: bullion, proof, and uncirculated coins. If you’re looking to buy these coins, it’s generally best to go with the bullion form, since such coins are backed by the U.S. government, giving investors some added peace of mind.
5. Consider Your Storage Options
Regardless of what type of palladium bullion you’re buying, don’t forget to consider where you’ll be storing the palladium you purchase. You can do this in your own home, at a local bank, or in a third-party storage facility. If you go with the latter option, make sure you’ll retain full ownership of your stored palladium bullion.
| Factor | Palladium Bars | Palladium Coins |
|---|---|---|
| Price | Lower premiums | Higher premiums as a result of minting |
| Authenticity | Usually sold with purity marks and assay cards | United States Mint coins |
| Storage | Simple to store and stack | Simple to store |
| Ideal For | Investors wanting to maximize metal per $ | Collectors and investors |
| Face Value | No face value (pure bullion) | Face value of $25 for American Eagles |
Order Bullion from First National Bullion Today
Whether you’re experienced in buying palladium or you’re a new investor, reach out to the experts at First National Bullion. We offer a huge selection of palladium, gold pieces, platinum assets, and silver items.
If you’re looking for the finest-quality coins, bars, and bullion, give us a call at 480-546-8928 to speak with one of our precious metals experts. We’ll help you choose the best precious metals for your needs and guide you to the right storage solution. Contact us today to start buying palladium and other bullion, and sign up for our newsletter to stay up to date on the latest in the industry.
FAQ
Should I consider buying palladium instead of gold?
Demand in the automotive sector heavily influences palladium’s price, as this precious metal is used in the manufacturing of catalytic converters. Tight palladium supply means sharp price increases, making it appealing to investors seeking industry-driven upside.
Gold acts like a hedge of protection instead since it’s more stable. Since they behave differently, they complement each other, so consider adding both to your portfolio.
How do I choose the best palladium when buying from dealers?
If you’re wondering how to buy palladium, choose palladium bullion that is at least .9995 fine to ensure purity and authenticity. Quality bars also come from reputable refiners like Valcambi, PAMP, and Credit Suisse and contain serial numbers. Buying palladium from a widely respected dealer that offers transparent pricing and insured shipping is also critical to avoid accidentally purchasing counterfeits.
Should I keep my palladium in a third-party vault or at home?
Home storage is sufficient when you’re buying small palladium amounts, but larger volumes warrant depository storage to avoid risk from natural disasters, fire, or theft, as palladium has a high per-ounce value. A third-party storage provider offers documentation, climate control, full insurance, and 24/7 security, which is particularly essential if you intend to sell your palladium in the future.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell is made at the customer’s sole discretion.
