When investing in precious metals, many investors often restrict their search to gold and silver bullion, and it’s easy to see why. For one, there is a lot of glamorizing and hype surrounding these metals, which fuels their popularity among investors. One downside to this development is that many investors overlook other well-performing precious metals such as Platinum and Palladium that can add value to their portfolio.
Investing in Platinum and Palladium would be the ideal choice for investors willing to expand and diversify their precious metal portfolio beyond gold and silver. But first, you need to understand the essence of both metals.
Platinum and Palladium
Platinum and palladium are both highly valuable metals utilized across different industries. Leading the pack is the automobile industry, where nearly half of the world’s supply of Platinum and palladium goes into the production of catalyst converters and other vehicle emission device controls. These metals can also be used in making fine jewelry, building solar panels, etc.
Note: The prices of both Platinum and palladium are know to move in tandem since they share similar demands within the automobile, jewelry, and investment scene.
Differences between Platinum and palladium
While Platinum and palladium may be similar in their appearance and utilization, there are a few notable distinctions that might appeal to investors. Some of which include:
- Rarity: In terms of rarity, palladium leads the pack with a global supply of 6.4 million ounces in 2021. Many analysts estimate palladium to be 30 times rarer than gold and about 15 times rarer than Platinum. This reflects in its price, as palladium bars and coins are usually more expensive than platinum ones.
- Weight: Platinum weighs heavier than palladium, making it more durable and denser.
- Volatility
Although Platinum and palladium are considered volatile metals when compared to gold and silver, Platinum remains the most volatile of all the precious metals.
Should you buy Platinum or Palladium?
There’s no standard answer that would apply to every investor. Ultimately, your level of risk determines whether Platinum or palladium would fit your investment goals. If you have a high-risk appetite, your portfolio may be able to accommodate the high volatility that comes with palladium’s spot prices. Conversely, Platinum may prove suitable for a portfolio with less risk appetite.
Another factor that can influence your choice between Platinum and palladium is “Budget.” If you have a small investment budget, you may find Platinum to be a better choice for your portfolio. To put this into perspective, you would spend about $1200 lesser to buy a 1 oz Credit Suisse Platinum Bar rather than a 1 oz Assorted Palladium Bar.
Ultimately, your choice to buy either Platinum or palladium would depend on various circumstances surrounding your investment with important factors like your investment budget; philosophy; and risk appetite, taking precedence.
Buying Platinum and Palladium in 2022
As earlier stated, Platinum and palladium are highly valuable metals with huge investment potential and great future prospects. Like with other rare metals, you can purchase a platinum or palladium Bar/ coin from a trusted dealer.
TRB Bullion recommends that you carry out adequate research or consult a financial professional before making any investment decision.