Palladium as an Investment



Known as the poor man's platinum, palladium is used extensively to produce catalytic converters for automobiles and is less costly than platinum. It is also used in manufacturing jewelry. Russia for years has been a major source of palladium. However these supplies have now become exhausted.

The demand for palladium is high. Automakers need catalytic converters. China and other emerging auto markets will continue to produce and use more and more automobiles. Yet, the supply of this precious metal continues to diminish. The current price of palladium is over $700 per ounce. Since demand is high and the supply is dwindling you can expect palladium to increase in price further.

In addition to being used in automobiles and jewelry palladium is alloyed with gold to produce what is called white gold. This white gold alloy is widely used in dentistry, surgical instruments, and electrical contacts. Palladium is generally available in 10 ounce bars and is 99.9 percent pure palladium. Bullion bars are hallmarked and certified to ensure the purity and weight of each bar is accurate.

At times palladium can be a volatile investment, but has been more stable recently as demand keeps going up and the supply of the metal continues to shrink. Certainly, palladium is an excellent way to diversify within precious metals because it not nearly as expensive as gold or platinum. With the stock market currently in an unstable state this investment strategy makes sense.

The auto industry has indeed been making a rebound and this is expected to continue. General Motors now sells more cars in China than in the United States. This means a lot of catalytic converters are being produced, and this will only increase. With this in mind, palladium may be one of the best kept secret investments around. While its price has dipped from time to time it always rebounds higher and is an excellent speculative investment for this reason.

Finally, palladium is used to produce catalytic converters, jewelry, surgical tools, electrical contacts, and is used in dentistry. China and other emerging markets offer huge markets to sell cars in. This means more and more catalytic converters will need to be produced. Indeed, General Motors now sells more cars in China than in the United States. The palladium supply from Russia is now exhausted. With the supply shrinking, but demand increasing the price of palladium is likely to rise.

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