Palladium is one of the most expensive precious metals traded in the commodity markets and offers an excellent portfolio diversification option. Though it is relatively unknown, palladium’s demand overtook gold as the most expensive precious metal in January, and though its prices have struggled in 2021 due to the global pandemic, it continues to remain the most expensive precious metal.
Test new investment alternatives
Investment in physical palladium is a unique investment opportunity and you can purchase it at the lowest price per troy ounce by buying it in the form of bullion bars. Palladium bars are manufactured from leading refineries of the world such as Pamp Suisse or the Royal Canadian Mint. These bars are generally sold in weights of 10 troy per ounce with the purity of .9995 fine palladium, you can purchase palladium bars in sizes of 1 kilo, 10 oz, 1 gram, or 10 gram. The bar is hallmarked by the refiner to certify its weight and purity. You can purchase palladium bars in large sizes or smaller, more divisible forms.
The allure of palladium
Palladium is a white metal that is used extensively in electronics, gold alloys, or as the primary metal in some cases. It is largely used in the automotive industry in the manufacture of catalytic converters that help in reducing harmful emissions produced by petrol-fueled car engines. Each unit uses around 3-7 grams of palladium and accounts for about 86% of mined palladium. 40% of the palladium is mined in South Africa, 44% in Russia, and the rest from USA and Canada. There are major supply constraints on the metal due to its dwindling reserves, labor unrest, and geopolitical conflicts. Due to its rising demand in the face of falling supply, the price of palladium is only increasing. However, palladium’s huge demand is mainly reliant on the overall global economy as a healthy economy produces lots of cars. If the market is suffering, then car production will be smaller and palladium prices are likely to fall.
Palladium prices in 2022
Palladium prices are largely dependent on global economic events. The key driver of the palladium price forecast in 2022 will remain the car industry’s supply chain issue. During the pandemic, the automobile industry took a hit, and until car, production returns to pre-pandemic levels at a sustained pace. Currently. The palladium prices are low and due to the supply pressure, the prices are depressed. This is a good buying opportunity for investors. The push for and rise in the adoption of electric vehicles also poses a long-term risk for palladium, as these vehicles do not need catalytic converters.
Palladium presents an unconventional investment avenue that can pay rich dividends in the long term as it is among the rarest of rare precious metals traded in the commodity market. Physical metals are a good investment option and holding some of your wealth in the form of tangible assets such as palladium bars can add to long-term wealth growth and sustenance.