Palladium Investing in 2013

Smart Finance

Palladium is a hard precious metal that is naturally occurring in the earth. It is nearly as hard as platinum and comparable to gold in its many uses. It has a matte; white and metallic finish which makes it a popular alternative to silver or platinum. Because it is a more common metal than platinum, it is much more affordable. In terms of precious metals, it is fairly new having been discovered in 1803. Investors have generally been investing in palladium in the form of jewelry, coins, and bars. While it is still valued at a much lower value than platinum, it is becoming increasingly popular causing the price to increase.Monex Live Palladium Prices

Money Wise

Palladium Jewelry
Palladium jewelry is a strong investment because of its projected growth. Generally jewelry uses only small amounts of metal- sometimes in combination with stones or other metals- making the value of the jewelry very little. Because the current and past prices of palladium were so low, companies are able to manufacture the jewelry at an affordable price making it possible to use more of the metal in the jewelry than other precious metals. Investing in a piece of palladium jewelry is recommended because the piece will be strong and beautiful to wear now. It will build up its value as time goes on and you can sell it for much more than what you paid. Since palladium is such a strong metal, it will maintain its look and quality throughout the years of wear and tear.

Palladium Coins
Coins that are made in palladium include the Canadian maple leaf coins and the Stillwater rounds. These are both made of solid palladium. The Canadian maple leaf comes in one size- the 1 oz. This coin features the Canadian symbol and a leaf from the Canadian national tree. The Stillwater rounds come in three different sizes- 1/2 oz., 1/4 oz. and 1/10 oz. The Stillwater was made in Montana; it features Lewis and Clark on the front and a buffalo on the back. The variety of sizes make it easy to decide which palladium coin is right for you depending on your investment budget.

Palladium Bars
These bars are perfect for the investor that likes to show off their precious metal collection without getting involved in coins. Unlike coins, it is also available in larger sizes for people trying to make larger investments. The two options for purchasing palladium bars are- 1 oz. bars and 10 oz. bars. They are printed with the name of the mint they were produced at, the number .999- as long as their purity is guaranteed- and a reverse image that is printed at the mint’s discretion and towards their needs. Palladium bars should only be purchased from trusted dealers with a guarantee involved.

How to Invest
Most investors have their preferred methods of investing with their precious metals. Some prefer to invest in jewelry that they can take advantage and use now while others prefer to invest in precious metal bars and coins, whether to put in a safe and save for a rainy day or show off to other investors and collectors. There are many different options for investing in palladium so the choice is really your preference. Depending on your initial investment budget, your needs and simply personal preferences you can choose a variety of ways to invest your money in the precious metal palladium.

Palladium’s Price History
In 1968, the price of palladium was $50 per oz. This was a significantly lower price than gold and platinum but still maintained itself within the precious metal world. It steadily increased until 1973 where it took a plummeting drop back to $50. It again rose from that point until 1978 where it took another drop to around $60. From this point, it slowly increased until 1990. These drops were perhaps due to Russia, during the Soviet era, releasing its government stores of palladium to the public. This release made the supply of the precious metal much higher than the demand at the time. After the decrease in 1990, it continued to increase to $260 in 1998. In 2006, we began to see a very steady increase in palladium where it hit the $400 mark. Palladium dropped down to about $300 in 2007 and began increasing from there. Palladium was at its highest in 2011 when it was over $850 an ounce. While it has decreased since then, it is has been steadily increasing in the year 2011; it has been projected to continue this increase reaching up to almost $1100 before 2015.

The history of palladium shows that the price is directly affected by supply and demand. Unlike some precious metals, such as gold, which are always in demand palladium has been fluctuating since it first showed up to investors. Throughout the fluctuations, palladium has increased- albeit slowly- throughout the past 50 years. Investors, who made their initial investment in 1968, would make around $700 on a piece of palladium that was in near mint condition in today’s market. An investor who put the same amount of money into silver- about 14 ounces of silver, due to it’s worth in 1968 being $3.41- would have only made around $290.

Investing in 2013
Palladium is one of the fastest growing metals in terms of price per ounce and investment factors. It is important to buy this metal when supply is greater than demand. At this time, the supply and demand of palladium is pretty much even, making it a perfect opportunity to invest in palladium. In the 5 years that are to come, palladium demands are supposed to nearly double due to vehicle manufacturers and electronic companies opting for this metal as opposed to gold or platinum. This demand increase can cause the prices to skyrocket, making palladium very valuable and very easy to sell- and very hard to purchase. The best investors know that investing at the right time and selling at the right time is the key to a great investment.

Choosing what medium you wish to invest in for your palladium investment is up to you. When purchasing your palladium, remember that jewelry is an investment you can enjoy while it is increasing. The problem with this is you pay for the price of the stones in the jewelry if there are any in it. Often, the stones will not increase in value; and, occasionally, you may not even be able to get the original value of the stones. Choose a piece that is solid palladium with no stones to be sure you get the most for your investment. When purchasing palladium, no matter if its a coin, bar or jewelry make sure that it is from a trusted source, it is verified and guaranteed to be .999 solid and that you are paying a fair market price.

Industry Resources:
http://www.scotiamocatta.com/scpt/scotiamocatta/prec/PGMForecast2013.pdf

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