Palladium Prices Today

Depending on who you are, you might find yourself using palladium in extremely different ways. However, the one thing most people familiar with palladium can agree on, is that it is rare and it has a high value. For engineers, palladium can be used to make catalytic converters, aircraft spark plugs, electrical contacts, surgical instruments, and more. Much like other precious metals, such as gold, silver and platinum, palladium bullion coins carry with it a face value gauranteed by its country of origin. For investors, the inclusion of palladium in their investment portfolio could bring valuable diversification.

One of the reasons palladium continues to grow in value is because of the demand from manufacturing. Over the past several years, the rise of palladium usage in auto catalysts has developed a true supply/demand deficit. This deficit has caused palladium to be one of the best performing precious metals for the past several years.

As with other precious metals, a primary driver for the value of palladium is investor demand. Because palladium is a commodity, the price of palladium can also be affected by the need for it in manufacturing products, global legislation, above ground reserves, and especially mine supply.

Whether you are looking at prices for palladium coins or bars, the historic prices of palladium show some massive gains. Below are a few of the most dramatic price gains in recent history:

• 800% gain from November 1996 to January 2001
  $114 per oz to $1090 per oz
• 300% gain from April 2003 to March 2008
  $145 per oz to $595 per oz
• 400% gain from December 2008 to February 2011
  $160 per oz to $862 per oz
• 150% gain January 2016 to January 2018
  $451 per oz to $1133 per oz
• 90% gain August 2018 to March 2019
  $815 per oz to $1576 per oz

The choice between a platinum or palladium investment varies from investor to investor. It is important to be informed about the differences between the metals and make your investment with an educated decision. As of 2019, the CPM Group has stated, “Palladium demand from the auto sector is forecast to slow in the medium term. Demand is expected to be hit by a combination of slowing demand from the auto sector and an increased use of platinum in place of palladium.”

When deciding between bars and coins, investors should look towards the product which offers the benefits that are better aligned with their investing goals. A main benefit and difference between bars and coins is the amount you are able to liquidate at any given time. Coins are generally smaller and easier to hold, while bars are typically sold in larger ounce sizes. Coins are also backed by the country of origin as currency. In addition to having a coin with a beautiful design, coins also offer the investor privacy due to favorable tax reporting laws. Bars are typically used among investors who look to buy and hold their metals in a third-party depository.