How to Invest in Palladium
Palladium is often overshadowed by the other, more famous items in the precious metal group despite its importance to the modern economy. Palladium is a popular metal for industrial uses as the product is generally cheaper than platinum while at the same time being softer while still being ductile and resistant to rust. Due to this resistance, the metal has become a popular choice for autocatalysts in order to help carmarkets keep a lid on harmful emissions. In this same vein, the metal has become a popular choice for dentists seeking a soft metal for dental crowns, or when made radioactive, a potential treatment option for those suffering from cancer.
Palladium has appeal as an investable asset for several reasons. First, if investors continue to lose faith in the fiat currencies and the U.S. dollar in particular, demand for palladium could rise as an alternative. Palladium also has appeal as an inflation hedge or as a way to play increasing demand for the car industry since so much of the product goes towards autocatalysts. Thanks to this heavy industrial demand, prices of the metal are often heavily correlated to automobile production and usage making the metal increasingly dependent on emerging markets.
Investors seeking exposure to palladium have a multitude of options. In addition to buying futures contracts on palladium or purchasing and holding the physical metal in the form of coins or bars, there are a number of ETF and equity options available as well. Investors can purchase stocks or ETFs of companies that mine the metal as the primary way to achieve equity exposure. Lastly, investors also have the option of buying palladium ETFs, either ones that track the futures for the metal or those that physically hold the product in secure vaults.
Ways To Invest In Palladium
Palladium In The News
- February Contango Report: Precious Metals and Softs
- Contango Report: Precious Metals Sloping Up for 2014
- Fed Tapering Puts Precious Metals In A Pickle
- A Deeper Look At Russia’s Commodity Industry
- Contango Report: Commodities Facing Uphill Curves
- Why Palladium May Be This Year’s Gold
- Sprott Debuts Physical Platinum-Palladium Fund
- Physical White Metals ETF (WITE): Two Years Later
- Inside Citi’s 2013 Precious Metals Outlook
- 3 Metals Outshining Gold