Investing in Palladium

Palladium is a precious metal that is not traded as commonly as gold or silver. However, investing in palladium can present you with some definite advantages as an investor. Here are a few things to consider about investing in palladium.


Palladium is a type of precious metal that is commonly used in many different products. The most common use for palladium is in the construction of catalytic converters for automobiles. The metal makes it possible to convert dangerous carbon monoxide into carbon dioxide. Palladium is also commonly used in jewelry products. It is not as common as some of the more well-known metals, but it is still very valuable. 


If you plan on investing in palladium, you are going to need to be able to handle large price swings. Palladium is known for its high level of volatility. When compared to other types of investments, it can be much more volatile. It will be extremely high one day and plummet the next. Therefore, in order to get involved in this market, you need to have a high tolerance for risk.

Coins and Bars

One of the most common ways to invest in this metal is to purchase coins or bars. By doing this, you are going to be able to get pure palladium that you can keep yourself. One of the big advantages of this is that you are going to have full control over what happens to your investment. However, at the same time, you are going to have to protect it. Anytime that you keep a precious metal on hand, you have to be very careful. You might consider putting it in a safety deposit box or in a vault facility. There are a number of different ways that you can purchase palladium coins or bars. The easiest way to do this is to work with a precious metals broker. You can also purchase them online through a variety of different means. For example, you could access one of the many online auction sites like eBay to purchase palladium coins or bars. 


Another method that you can use to invest in palladium is to purchase stocks. You could potentially invest in mining companies that mine palladium. There are not many options in this area, but there are a few mining companies that you could invest in. By doing this, you are going to be able to speculate on the price of palladium without having to worry about warehousing it. You will also not have to open any type of special account in order to access these stocks. You should be able to work with any standard stock broker in order to make your purchases.

Asset Allocation

Investing in palladium can be a good investment for you. However, you do not want to allocate too much of your portfolio to this one choice. Many experts recommend putting about 5 to 10 percent of your portfolio into precious metals.