Palladium is a popular precious metal for various reasons, such as its everlasting color, easy shaping and designing capabilities, and strong durability that’s often compared to platinum. Before investing, you should learn as much about palladium as possible, including why its prices may decrease or increase. Below, the professionals from First National Bullion and Coin, Scottsdale precious metals collectors’ premier choice for exceptional industry knowledge, explain some of those factors along with the benefits investors receive when adding it to their precious metals portfolios.

Production

A constrained supply of palladium could impact its cost. Therefore, the countries supplying the precious metal will determine its rate. South Africa is one of the top countries producing palladium due to its significant reserves. Other countries contributing to palladium production are the United States, Canada, Russia, and Zimbabwe. The rate at which these nations create palladium will determine how its costs rise or fall.

Some production factors include political and economic stability. If the country producing palladium is being affected by invasions or is contributing supplies, services, and other forms of assistance, it could cause them to produce palladium at a lower rate, increasing the cost. When these issues are resolved or under control, production could rise and lower the price of the metal.

Demand

Just as supply is vital in determining palladium prices, demand also matters. The primary use of the precious metal is in the automotive industry. The jewelry industry appreciates palladium’s color and fineness, especially for watches and rings. If these industries continue to demand the precious metal, it will be produced, and the price should decrease. If demand declines, the price could rise.

Economic Factors

When the dollar’s value weakens, palladium’s cost could increase. In countries where the value of money doesn’t change, people have more purchasing power than those in places that have been affected by the change in dollar value. As a result, the price of palladium could rise. If the dollar strengthens, the cost could decrease. Inflation impacts this precious metal because it’s considered an investment.

Monitor the economy to determine if there are impending financial risks and problems, such as inflation. You can also speak with professionals who can give you investment suggestions and tips to ensure you catch palladium at a good time to avoid being impacted by rising costs.

Benefits of Palladium

Although it’s newer to the market than most other precious metals, palladium provides many benefits, from its color to weight and allergy advantages. It’s a nickel-free product, making it popular for those allergic to certain precious metals.

Palladium is also considered a softer metal. However, compared to others, such as gold, palladium is more durable and harder. As a result, it can last longer, making it a preferred investment option. You can learn more by studying the metal and speaking with a precious metals firm to find the options that suit you best.

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 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.