Is Palladium a Safe Haven Asset?

Investing in Palladium provides an additional way to diversify your investment portfolio. With demand for precious metals gaining momentum over the last few years, Palladium has stepped up to become the most valuable of the four main precious metals (Gold, Silver, Platinum, and Palladium). It surpassed gold in value per ounce for the first time in 2019 and has been surging ever since.

Why Buy Palladium?

When you buy physical Palladium, you are investing in a precious metal that is 30x more scarce than gold. At the same time, you’re buying a metal that is becoming more and more important for industrial use. In fact, 85% of all available Palladium is used today by automakers to produce catalytic converters for reducing toxic emissions. As automobile companies face more rigid standards for emissions, the need for Palladium continues to grow. Production of new Palladium is less than 10% of gold production, and with the rising demand, this precious metal offers more scarcity than Gold, Silver, or Platinum.

Is Palladium a good investment?

If you are looking for a way to diversify your portfolio with a safe haven asset, Palladium has been outperforming the other precious metals in recent years. In addition, other safe-haven assets such as bonds have become more volatile and increasingly vulnerable to negative interest rates during the 2020 economic downturn. More scarcity means Palladium will often trade at a premium price over that of Gold and Silver. Because of its scarcity, you know this asset can not be inflated like cash currencies or manipulated by sentiment and overvaluations like stocks.

Is there a difference between physical and “paper” Palladium?

Physical Palladium is something you take physical ownership of, whereas paper Palladium refers to futures and other types of contracts that involve promises to buy or sell Palladium at a later date. Having ownership reduces 3rd party counterrisk and eliminates the extra fees for brokerage.

What is the best way to buy Palladium online?

There are multiple ways to buy Palladium. The type you choose can depend on your level of experience in trading coins, your available capital, and your capacity to store it safely.

• Coins - Various countries, including Russia, Sierra Leone, the US and Canada, mint Palladium coins. Their value is based on the metal content and guaranteed by whichever government minted them.
• Collectibles - Collectible coins are also available from sovereign mints. But they are valued more by their rarity, which may be attractive to investors experienced in these types of assets.
• Rounds & Bars - Both rounds and bars of Palladium with varying weights may be purchased and are minted and guaranteed by the private companies that produce them.

When you buy physical Palladium online, you’re able to diversify your portfolio with a safe haven asset that has shown steady growth in demand and value during the harshest of economic times. A Palladium investment may be the right hedge from market volatility, offering a safe haven asset to help you maintain your wealth, even during an economic recession.