The platinum group of elements includes palladium, which is one of the reasons both of these precious metals are very similar in appearance and sometimes mentioned together. Since each precious metal has appealing qualities, one isn’t necessarily “better” than the other. That said, there are some notable differences between palladium and platinum that should be kept in mind as you explore the possibilities with investments and purchases. To know which type of precious metal is right for you, consider a few factors outlined by the professionals from First National Bullion and Coin. Scottsdale residents should think about the following information before choosing between palladium and platinum.

Palladium & Platinum: The Basics

Palladium is a soft silvery precious metal with a low melting point. It’s also not as dense as other metals in the platinum family. It’s considered rare, with an estimated global supply of 6.74 million ounces, according to Statista. Platinum is a precious metal that was discovered about a century before palladium. It’s not as rare as palladium, but it’s rarer than gold and harder in pure form. According to some estimates, there are 70,000 metric tons of platinum reserves in the world today.

Appearance

Platinum and palladium are both shiny and lighter hued, so there’s actually very little difference in appearance alone. A matte finish also tends to develop over time on both metals. This is referred to as patina, but it can be removed with professional polishing.

Cost

Palladium used to be more affordable than platinum, but that has changed in recent years. The spot, or market, price of platinum, on the other hand, typically fluctuates more, and it didn’t make any significant gains in 2021, according to Investing News. According to the same source, palladium prices have spiked due to supply shortages and increased demand. The main reason for the rise in demand is because of the industrial uses for palladium in catalytic converters and electronic components. Platinum also has some industrial uses, but it’s more commonly used in jewelry making.

Durability & Strength

Palladium is naturally harder than platinum. This makes more of a difference with jewelry, since it’s easier to scratch platinum-coated jewelry. Still, both metals can be scratched if you’re not careful when storing and handling them. In terms of overall strength, platinum is a bit stronger, but the difference is not very noticeable.

Investing

For investment-related purposes, it’s generally easier to find solid forms of platinum, such as bars and coins, in a greater variety of sizes and price ranges. According to Monex.com, palladium may also provide some lucrative opportunities for investors. What benefits you most for investment purposes depends on factors such as:

• What you can afford with initial investments
• The specific goals you have for precious metals investments
• How active you plan to be with buying and selling

The Bottom Line

Palladium is worth considering if you prefer a lighter precious metal with the potential to have a higher value if you hold on to it. Platinum is appealing as well if you prefer more options with availability, and it’s fairly easy to polish when used for jewelry. Overall, though, you can’t go wrong with either one of these precious metals because of their many shared qualities.

Whether you’re deciding between palladium or platinum or you’re building an investment portfolio and looking for the best place to purchase Scottsdale gold and bullion, reach out to the trustworthy professionals at First National Bullion. Give one of our experienced dealers a call today at (480) 546-5089.

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.