Should You Buy Palladium by the Gram?

 

Palladium is a white-silver metal that offers an excellent way to invest in precious metals. It’s a rare metal, as is the case with all precious metals in the platinum group of metals, although it’s also a precious metal that holds its value, since it’s available in limited quantities. A popular way to buy palladium is by the gram. There are several key reasons to consider investing in palladium this way. Keep reading as the experienced precious metals dealers from First National Bullion, the best place to buy gold in Carlsbad, break down the details of buying palladium by the gram.

Diversification

Palladium gram bars are a great way to diversify your investment portfolio. Unlike gold, the price of palladium isn’t directly linked to global events. It’s primarily linked to its role in the automotive industry. Also, palladium prices aren’t linked to stocks, bonds, and similar assets.

Low Entry Point

Palladium’s current price is just under $1,000 an ounce. However, the price of palladium can fluctuate rapidly due to supply and demand. If you buy a gram bar of palladium, it’s more affordable than larger quantities. This makes it an easy way for first-time investors to get started. It also gives you a chance to explore the possibilities of buying and selling with more confidence.

Liquidity (Ease of Selling)

If you want to sell your palladium, it’s much easier to sell gram bars or rounds. Investors may be hesitant to buy anything larger due to the price, and you wouldn’t want to sell your palladium for less than what you paid for it. Investors are more likely to buy palladium if it’s in smaller gram-size bars or rounds.

Rarity


Palladium is about 30 times rarer than gold and even more scarce than platinum. It’s also a precious metal that’s only mined in a few countries and only in certain mines. There’s one mine, for instance, that produces about 40 percent of the world’s palladium. However, there are disruptions in production from time to time due to labor shortages or strikes. These issues make palladium even more rare. If you invest in palladium, it may increase in value over time, since it’s a rare metal.

High Industrial Demand

The industrial demand for palladium remains high even with electric vehicles on the market. There’s also a high demand for palladium in the Chinese market. China accounts for 22 percent of the global demand for palladium. All these factors make palladium even rarer. The increased demand means even with volatility in the palladium market, you may be able to offset these fluctuations. The good news is analysts estimate a global surplus of the metal of 20–40 tons by 2030.

Opportunities to Capitalize on Short-Term Price Movements

Because of the short-term price movements associated with palladium, there are many opportunities to buy and sell your palladium gram bars or rounds. Buying gram-size bars or rounds allows you to minimize your risks as well if you’re concerned about market volatility. It can also be helpful to consult with a financial advisor familiar with precious metals investments. 

 

If you're not sure where to start with your palladium investments, seek advice from an experienced precious metals dealer. For the highest-quality palladium bars, Carlsbad residents can rely on the professionals at First National Bullion and Coin. We buy and sell all kinds of precious metals, including silver, platinum, gold, and palladium. Carlsbad collectors who are looking for trustworthy dealers and high-quality service should give us a call 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.