Palladium is a silvery white metal which is thirty times rarer than gold and belongs to the same group of metals as platinum. Discovered in 1803 by William Hyde Wollaston in platinum ore from South America, the metal takes its name from "Pallas", Athena's playmate in Greek mythology.
Palladium is qualified as a "noble metal" thanks to its high resistance to oxidation. The properties of palladium give it a wide range of uses in industrial and consumer applications and also make it an interesting investment.
Palladium is mainly consumed by the automotive industry for the manufacture of catalytic converters for gasoline cars. 80% of the world's supply is swallowed up by the assembly lines of car manufacturers. This is why the tightening of anti-pollution standards throughout the world should continue to drive the demand for palladium. The metal is also used in jewelry, including as an alloy in the manufacture of white gold, to which it gives its white and silver hue. Palladium is also used in the production of electrical components, in dentistry, in watchmaking and in medicine. Its price is therefore particularly dependent on industrial demand.
The vast majority of the world's palladium production comes from South Africa and Russia alone. The price is supported by a supply deficit in the face of growing demand. Precious metals experts believe that the recent increase in industrial demand combined with dwindling global reserves will push the metal to new highs.
Over the years, palladium has become one of the most expensive and best performing precious metals. Many investors also consider it a safe-haven asset. The strong fundamentals and relatively small size of this market make investing in physical palladium an attractive way to diversify your portfolio.
Palladium can be bought physically in the form of coins or bullion. Easy to keep, sell and trade, coins can be a great way to invest in palladium. 1 ounce palladium bars are the most popular size with precious metals investors. Only a few refineries produce 99.95% pure palladium bars, the most popular being Valcambi and Credit Suisse.
Investors who wish to accumulate large quantities of palladium at a lower cost prefer large bars in order to benefit from the lowest possible premium.
If you are interested in the metal only, the palladium content, and have no interest in the delicate designs of the coins, bullion bars might be a good choice.
The amount of palladium purchased also has an impact on the premium, which will be reduced considerably when purchasing several coins or bars. GoldBroker.com offers commissions (including premiums) adapted to the investment amount.
Palladium is a very dense metal, which is why palladium bars take up much less storage space per troy ounce than silver, for example. That said, palladium remains a heavy metal which is rather difficult to handle. It is therefore recommendable to entrust it to professionals. However, a number of factors must be taken into account before choosing a storage location, such as the level of security, storage conditions, accessibility and insurance.
For optimal security and with a view to long-term investment, GoldBroker.com offers a storage service in your own name and outside the banking system. The vaults are managed by Malca-Amit, an independent company specializing in the safekeeping of valuables goods. As the sole owner of the precious metals, the client has direct access to the secure vaults for stock inspections or withdrawals. The stored bullion is insured against all risks by an internationally renowned company.
GoldBroker.com offers a palladium buyback service (within 2 working days), exclusively reserved for clients who store their products in the vaults of Malca-Amit. The precious metals kept in the storage units have never left the professional logistics chain and thus retain their maximum resale value.
