Palladium is a bright, shiny precious metal largely mined in parts of Europe and Africa. It’s appealing for its commercial use, primarily in catalytic converters, but it can also be included in your investment portfolio. If you already dabble in precious metal investments, you may have heard about the dramatic increase in palladium’s value in recent years. Below, the precious metals experts from First National Bullion, the palladium, platinum, silver, and gold dealers Scottsdale collectors rely on for outstanding quality and service, take a closer look at whether or not this trend is expected to continue.
Why Palladium’s Spot Price Has Spiked
Before getting into current predictions, let’s look at why palladium has been getting so much attention in the precious metals world in recent years. According to Capital.com, its value has jumped nearly 400 percent since 2016. This has made it the best performing of all common precious metals during this time period—even ahead of gold, silver, and platinum. A high demand for palladium has created some issues with availability as well. For this reason, Metals Focus cites the continued palladium deficit as another reason the value has significantly increased.
The Future of Palladium’s Value
Palladium Investing News reports this precious metal hit an all-time high in February 2020. However, its value dropped a month later, largely due to the COVID-19 pandemic. However, palladium’s value did rebound shortly after this dip, partly since there’s a tendency to turn to precious metals investments during times of economic uncertainty. So far in 2021, the value of palladium has remained stable. In fact, it’s still the highest valued of the four main precious metals. Even so, commodities research and consulting firm CPM Group predicts gains for 2021 could be somewhat lackluster compared to what’s expected with other metals. Capital.com also notes that a correction “can’t be ruled out,” further suggesting palladium prices may level off.
Automotive Demand’s Impact on Value
Because of the use of palladium in car production, automotive demand may have an impact on value. However, automotive production and demand have increased as consumer habits have started to shift back toward pre-pandemic patterns. Also, more countries have been tightening emissions regulations, further boosting the demand for palladium, since catalytic converters minimize exhaust emissions.
Investing in Palladium
According to Capital.com, there’s still enough short-term variation in palladium prices to allow room for investors to take advantage of the higher value. As for how to invest in palladium, there are several options to consider. One possibility is to purchase bars or rounds. The United States Mint also produces palladium coins. How you approach palladium investments will depend on your investment goals, budget, and other factors important to you. If you’re fairly new to investments of this nature, it can be helpful to:
• Consult with an investment professional
• Start with smaller investments until you get a feel for price fluctuations and other market factors
• Balance out your precious metals investments so you’re not solely dependent on one commodity
Whether they’re veteran palladium collectors or new investors looking to buy silver bars, Scottsdale residents should reach out to the experts at First National Bullion. We offer a huge selection of palladium, gold, platinum, and silver items. Scottsdale collectors who are looking for the finest-quality coins, bars, and bullion should give us a call at (480) 546-5089 to speak with one of our precious metals experts.
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 are made at the customer’s sole discretion.