How Do I Invest In Palladium

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Palladium Stock Price Today

Palladium: What Retail Investors Need to Know

Palladium stock price is influenced by various factors, including industrial demand and US dollar value. This means that the commoditys share price keeps on fluctuating. With many investors looking to invest in palladium, knowing the current share price of the asset will help you make the right investment decisions and improve your profit potential.

That being said, below is a live chart indicating todays palladium share price and historical data to effectively develop the best strategy for your investment.

Funds With Exposure To Palladium

Exchange-traded funds that offer investors exposure to precious metals primarily focus on gold and silver. But a lesser-known option is palladium, a silvery metal used mostly in catalytic converters but that also has applications in jewelry, electronics, and dental fillings. Palladium and other platinum-group metals, such as rhodium and ruthenium, are somewhat rare, keeping their prices relatively high.

The U.S. is a relatively minor producer of palladium, generating an estimated 14,000 kilograms in 2020. Russia was the biggest producer, with 91,000 kilograms, followed by South Africa at 70,000 kilograms. Russia accounted for 43% of the world’s palladium supply in 2020, and South Africa accounted for 33%.

Due to palladium production’s concentration and the small size of the palladium market, prices have historically been fairly volatile. Prices rose to over $3,000 per ounce in May 2021 before plummeting to less than $1,600 by December of that year. Palladium recovered through the beginning of 2022 before jumping to as high as $3,400 in March, spurred by Russia’s invasion of Ukraine and subsequent sanctions. Investors interested in adding palladium to their portfolios might find the easiest path is through ETFs or similar vehicles.

Should I Invest In Palladium

Although this year palladium is gaining almost 20% trading now at $786, investing in the metal should be done with caution due to the fact palladium is a volatile metal. In particular, the high in 2014 was over $900 and the low in 2009 was less than $200.

Last year after the US election results, palladium prices rallied supported by expectations that President Trump will actually boost economic growth and as a result, increase automotive demand. Almost 75% of the worlds palladium production is used in auto-catalysts so the sentiment was strong for palladium.

The platinum-palladium spread has narrowed substantially from $375 before the US election to $175 right now. This reflects clearly tighter underlying fundamentals for palladium.

HSBCs forecast for this year rose to $790 from $760, while Capital Economics sees palladium rising to $800 an ounce by the end of 2017, as growth in the Chinese vehicle market slows from 2016. TD industries see palladium at $740 in 2017 and $790 in 2018, while Societe General sees the average palladium price rising to $750 in 2017.

I hope my should I invest in Palladium? post has been useful to you. If you have any questions please let me know in the comment section.

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No 2 Platinum Group Metals Ltd

  • 1 Year Return: -58%
  • 1 Year Revenue Growth: 65%

Platinum Group Metals is a Canadian company that has most of its palladium operations focused in South Africa. Its currently working to develop the Waterberg Project which is an underground mine containing more than 12 million ounces of palladium.

Although its by far the smallest company on this list, owning 50% of the Waterberg mine is a strong asset.

Based on their Q2 2022 financial reports, they are not currently profitable. But, with certain big players such as Norilsk Nickel not trading anymore, this leaves room for others to step in.

Betting On Palladium Supply Constraints

The Top 3 Reasons You Need To Invest In Palladium

With three-quarters of the global supply of palladium coming from two countries, there is a real possibility for supply shocks in palladium production.

The United States is a large importer of palladium and has a recent history of tensions with Russia. Should Russia curtail its exports of palladium, the price of the metal could soar.

Similarly, labor disputes in South Africa or new mining regulations could lead to supply disruptions and higher prices.

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Palladium Investment Reasons And Drivers

Palladium is a precious metal, so it may be believed to be a safe-haven or inflation-hedge similar to gold. However, it is not completely true. There is often positive correlation between gold and palladium prices , however, in times of economic uncertainty the price of palladium tends to decrease in relation to gold. The best example may be the Great Recession: in December 2008, the gold-to-palladium ratio surged, reaching almost 4.9 after the outburst of the financial crisis. That jump clearly shows that palladium is an industrial commodity rather than a safe-haven asset, such as gold. The gold-to-palladium ratio is thus a useful indicator of economic confidence among investors.

Since palladium is widely used for catalytic converters, its price largely depends on the situation in the automotive industry and vehicles production , which depends on the general economic situation and the level of business activity. Actually, about 80 percent of palladium demand comes from the automotive industry. The rest of demand is generated by industry, jewelry, and investments.

No 5 Anglo American Platinum

  • 1 Year Return: -24%
  • 1 Year Revenue Growth: 155%

Headquartered in Johannesburg, Anglo American Platinum is the largest global producer of platinum. As a result, the company is also one of the largest palladium producers. In fact, the mining company has three segments: Platinum Group Metals, Base Metals and Precious Metals.

Despite several obstacles causing mine closures, this palladium stocks company is achieving record growth. In the first half of 2021, Anglo reached a record EBITDA of over $6 billion. Not only that, but the company offers an attractive 8% dividend yield.

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How Do You Buy Palladium

Palladium is available in both coin and bar form and is readily available to buy and sell through Midas Gold Group.

Both the US and Royal Canadian Mint produce a government-issued palladium one ounce coin. Palladium is also available in bar form from such reputable mints as PAMP Suisse and Credit Suisse.

How Do I Invest In Palladium

Investing in Palladium (stock review)

Open and login to your broker account, choose which type of palladium instrument you want to use stocks, ETFs, futures, CFDs, or other and use your preferred trading strategy to decide when to buy or sell. Note that all trading contains risk of losses as the market price can go against your position.

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What Drives Palladium Price

Palladium has a unique set of features that figure into its price, all relating to supply and demand. Generally, demand refers to the number of buyers who desire something, whereas supply refers to how much the markets can provide to meet that demand. Essentially, when demand for a product increases, prices will see upward movement.

During macro events in 2020, demand for palladium rose dramatically as public transit systems shut down due to the pandemic. This led to an increase in the demand for automobiles that ultimately caused palladium price to reach an all-time high of $2700 per ounce.

The key value proposition of all the precious metals is scarcity relative to demand . This concept of supply and demand can be a delicate balance. Still, its easy to see a clear path of opportunity with palladium due to its distinctive set of circumstances around price discovery.

Palladiums importance to the automotive and emissions-reducing industry is a primary factor affecting its supply and demand. But geopolitics, palladiums substitution qualities, and its relation to the US Dollar also play roles in driving palladium price.

Whats The Price Of Palladium Today

Although palladium is not as heavily traded as gold or silver, its demand, and unique applications in jewelry and industry, make it an exciting metal to trade.

What affects the price of palladium?

  • Palladium is used along with platinum in catalytic converters.
  • Given it is rare and only found in a few places in the world, prices can remain high.
  • Palladium is bought in bull markets and sold in bear markets. Gold, on the other hand, is bought during times of uncertainty, and slowly sold off during times of good fortune.

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Top Palladium Stocks Of 2022

Investing in 2022 has been a challenge so far. Previous strengths like growth stocks and tech look weak, with bond yields rising. That said, if you started investing after 2020, you might want to buckle up. It could be a bumpy ride.

With this in mind, commodity prices are heavily influenced by supply and demand. And with higher industry use, demand could push palladium prices back up in the future.

The precious metal is primarily used to make catalytic converters. It turns toxic gases into CO2 and water vapor. Also being used in fuel cells powering cars and buses.

As governments and the private sector work together to promote less pollution, palladium is becoming a key piece. That said, here are the top five palladium stocks set to benefit from higher prices.

Who Should Invest In Palladium

What Is Palladium? The " Other"  Precious Metal

There are many ways to secure your financial future. You might want to invest in palladium if:

  • You want investment portfolio growth
  • You want to diversify your investments
  • Gold isnt fast enough for you
  • You want to join the precious metals market but dont know where to start
  • You prefer lower-risk long-term investments
  • Instant wins arent your goal

Before making any decisions, we recommend consulting with your financial advisor to discuss the best ways to invest your earnings.

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Demand From The Automotive Industry

The auto industry represents almost 75% of palladiums global demand. As countries pass new laws restricting carbon emissions from automobiles, the demand for catalytic converters rises. Along with it, the need for more palladium, which is a key component in the construction of the converters. Increasing demand for clean energy cars factors into the price of this precious metal. Growing demand is seen particularly in countries with large markets, such as China and the US. When China issues new clean air standards or auto manufacturing declines due to oversupply, you can see the effects of these industry events on palladium price.

Best Palladium Stocks For 2022

2022 looks promising for palladium investment, considering that its demand has attracted many investors not only in the UK but globally. If you are looking to invest in palladium stocks, you should find those with high potential for profits. Luckily, we did our own research and handpicked the best palladium stocks for 2022. Feel free to conduct further market analysis on these stocks to choose the one you fully understand.

  • Sibanye Stillwater
  • Founded in 2013, Sibanye Stillwater is one of the leading producers of palladium that also specialises in platinum and gold. It is located in South Africa, and its shares are listed on the Johannesburg Stock Exchange and the New York Stock Exchange. Other extended operations are in the US, Argentina, Canada, and Zimbabwe. The company also owns Stillwater and East Boulder mines, which are the only palladium mines in the US.

  • Ivanhoe Mines
  • Ivanhoe Mines is located in Canada and focuses on developing and exploring metals and minerals, including palladium, platinum, gold, rhodium, copper, and nickel. The companys operations are primarily done in Africa, and has managed to partner with various global miners to diversify their services across the globe. Founded in 1993, Ivanhoe Mines has a bright future and investing in its shares can bring about profits.

  • Anglo American Platinum
  • A-Mark Precious Metals
  • New Age Metals
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    Physical Palladium Shares Etf

    ETF options for investing in palladium are relatively limited, but the Aberdeen Standard Physical Palladium Shares ETF is perhaps the largest. As of Dec. 31, 2021, the fund held more than 181,391 troy ounces at a secured vault in London.

    PALL fund may be the purest palladium play given that its prices derive directly from the London Platinum and Palladium Market, a major trading center for platinum-group metals. The fund was founded in December 2009 and, as of Feb. 28, 2022, has returned 14.91% annually since its inception. The annual expense ratio is 0.60%.

    Palladium Price Movements Over The Years

    Palladium One Mining – Use Your Cranium: Invest In Palladium?

    While gold, platinum, silver, and other precious metals typically gain value at predictable, steady rates over time, palladium recently soared for the reasons discussed above. In 1998, when global governments began taking action against pollution, platinum metal values increased by over 600%. In August 1977, one troy ounce of palladium was worth $41.70 in December 1998, it reached $332.15.

    Today, the value of palladium bars and palladium coins continues to skyrocket. In February 2022, palladium reached $2,981.90 for one troy ounce. So far, no replacement palladium options exist, meaning this market trend should continue as the metal becomes scarcer.

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    How To Trade Palladium Online

    Now that you know what palladium is, where it is produced and some of the ways you can gain exposure to the precious metal, how can you trade palladium CFDs online? You can get started with these five simple steps:

  • Open a Trade.MT5 account with Admirals
  • Download and open the MetaTrader 5 trading platform
  • Press Control + U to open the symbols window. Search for palladium and select Show Symbol to add palladium to the Market Watch window on the left of the screen
  • Find palladium in Market Watch, right-click and select Chart Window to open a palladium price chart
  • Press New Order at the top of the screen to open an order window, like the one shown below. Here, you can fill out the desired size of your order and click Buy or Sell to send the order to the market
  • Depicted: Admirals MetaTrader 5 Palladium Daily Chart. Date Range: 30 November 2020 23 March 2022. Date Captured: 23 March 2022. Past performance is not a reliable indicator of future results.

    Ways To Invest In Palladium: Etfs

    Palladium-backed exchange-traded funds track the precious metal like an index fund, but trade like stocks on an exchange. Examples of palladium ETFs include the Sprott Physical Platinum and Palladium Trust and the Aberdeen Standard Physical Palladium Shares .

    The Sprott Physical Platinum and Palladium Trust ETF was created to invest and hold substantially all of its assets in physical palladium and platinum bullion. It currently holds nearly 47,000 ounces of palladium and over 61,000 ounces of platinum. The portfolio is held in custody at a federal crown corporation of the Canadian government.

    For its part, the Aberdeen Standard Physical Palladium Shares is designed to track the performance of the palladium price, less expenses. It holds over 204,000 ounces of palladium in London at a secured vault belonging to JPMorgan Chase & Co. .

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    How To Trade Palladium Online In 2022

    The precious metal palladium has attracted a lot of attention from investors recently, with its price hitting a record high at the beginning of March 2022 due to the ongoing conflict between Russia and Ukraine the former being one of the worlds largest producers of palladium.

    But what is palladium? What are the different ways of investing in palladium? Is palladium a good investment? In this article, we will answer all these questions, demonstrate how to trade palladium online and much more!

    Ways To Invest In Palladium: Bullion

    Investing in TSXV Palladium Stocks

    Another way of investing in palladium is by holding physical assets directly, such as palladium bullion. In fact, financial investors may buy palladium bullion bars, palladium bullion coins or collectible palladium coins for portfolio growth. This approach may suit multiple kinds of investors, from those looking to invest small amounts of money in the metal to those with larger quantities of cash.

    Palladium bars and wafers are another option, but these are not as readily available.

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    Palladium Is In High Demand

    Palladium is a precious metal that is in high demand. Palladium is in high demand from various industries but there is a low supply. This makes the precious metal scarce, which is an attractive feature for an investment. There are many applications for palladium, making it one of the most sought after precious metals on the market.

    Russia is one of the worlds largest producers of precious metals, especially a rare one like palladium. The ongoing war between Russia and Ukraine hinders palladium production, which can prop up the value of palladium.

    Furthermore, with the push to be more environmentally conscious, the auto industry is looking to reduce vehicle exhaust emission through catalytic converters. Palladium is one of the components in these converters.

    Sprott Physical Platinum & Palladium Trust

    Like the Physical Palladium Shares ETF, the Sprott Physical Platinum & Palladium Trust also holds physical bullion as opposed to derivative securities. As of March 4, 2022, the ETF held more than 58,000 ounces of platinum and 43,000 ounces of palladium.

    As of Jan. 31, 2022, the ETF has returned around 5% annually since its inception in December 2012. Trust unitholders may redeem their units for physical platinum or palladium on a monthly basis if they meet minimum redemption requirements. The fund has an annual expense ratio of 1.07%.

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    Trading In Palladium: What You Need To Know

    Palladium is the most expensive of the worlds top four precious metals namely gold, silver, platinum and palladium an accolade earned due to its rarity and the difficulty in extracting it from the earth.

    Although slightly less expensive per ounce than its rarer and lesser-known cousin rhodium, palladium is currently significantly more expensive than gold and is one of the most popular commodities to trade in. Russia and South Africa are the two largest palladium-producing countries in the world, and both are known for their rich mineral reserves.

    Due to its incredibly limited use thanks to its high price, palladium has no dedicated miners focusing on it the way companies may focus on mining gold or silver. Instead, its mined as a secondary by product of digging for other metals.

    Because of this, the chief drivers of palladiums price are often mining related, such as the supply of the precious metal relative to its demand something palladium traders need to keep in mind.

    Palladium is used in small amounts in many capacities, but its biggest consumer is car manufacturing, which uses palladium in catalytic converters, as well as in exhausts for hybrid electric vehicles. However, a significant disruptor for palladiums popularity could be the rise of electric vehicles , which dont require the precious metal.

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