Palladium Investing

Precious metals are available for investors who want an alternative to the standard stock or bond investment. The recent economic crash of 2008 has brought about a need to find additional ways to invest surplus monies. The standard stock and bond markets have had numerous defaults, and the global economy continues to be in a state of change. Unpredictable market gains and losses have created a state of concern for most financial investors. The precious metals investment market is one area of investment that has remained true. There are several investment metals that are on the open purchase exchanges.

palladium price chart code

palladium price chart code

Precious metals are rare and naturally occurring metallic chemical compounds that have a continuing high economic value. The rarity of these valuable natural resources makes them increase in price as the demand for their unique uses grows. The precious metals are less reactive than most natural elements, and this quality is an additional feature that sets them apart for value in an open commodities market. These metals are ductile and have a valuable luster in appearance as well. They have been used as currency in years past. The precious metals are considered investments and industrial commodities today.

Palladium is a valuable precious metal. It is rare and has a silver white appearance. Palladium has the lowest melting point of the platinum group metals (palladium, platinum, rhodium, ruthenium, iridium, and osmium). Palladium is the least dense of this group of platinum metals.

Palladium is used in catalytic converters. A catalytic converter is that engine part of an automobile that converts up to 90% of the automobile exhaust fumes that can be harmful to a harmless vapor. Over half of the supply of palladium is used for this function within the automotive industry.

Palladium is a precious metal that is important to the fields of electronics, dentistry, and medicine. Hydrogen purification uses palladium, and there are additional applications for this compound within certain chemical applications. Ground water treatment uses palladium, and jewelry uses this element’s silvery luster as jewelry ornamentation.

Palladium is used in the technology developed for fuel cells that combine hydrogen and oxygen to produce electricity, heat, and water. This precious metal is used in the water purification process that is critical for a community’s safe drinking water supply.

Precious metals can be a profitable investment for those looking to find an alternative form of investment profit. There are certain economic factors that continuously affect the price of precious metals, including the prices of gold and silver. Investing in precious metals can be an additional portfolio option for those investors wanting to diversify outside of stocks, bonds, and mutual funds.

The price of palladium has remained relatively stable over the past several years. The demand for this type of precious metal is remaining steady or rising as new applications for this precious metal are being discovered. There is a steady market for this metal in several of the major international industries, and these applications are the following:

1. Palladium gained popularity in the 1990’s when the automobile catalytic converter began to be used in most new vehicles. The catalytic converter gave a new and effective solution for the dangerous auto emissions that had caused industrial waste problems within the larger cities in the U.S. and abroad. Palladium became useful, and the price of this commodity rose to $1,000 per commodities contract.

2. Electronic manufacturers discovered that this chemical element is effective as an electrical conductor and that the precious metal palladium is less expensive than other metals for plating applications.

3. Dental applications have recently been used for crown and bridge work. This natural precious metal is compatible with human tissue.

4. Palladium is lightweight and tends to make a good natural element for jewelry. This metal is lighter than silver as well.

5. Fuel cell technology has found that this element can be effectively used for another type of industry application.

6. Coin minting is adding palladium to mint bullion coins for the bullion market and for custom coin collectors.

Palladium prices rose to an all time high at $1,000 per commodities contract when this precious metal was discovered as a central element for catalytic converters. The prices of palladium contracts have remained fairly steady since this time. The economic problems of 2008 saw some price changes. The demand for this precious metal has remained steady and has risen in the past few years. There have been few significant devaluations of this commodity over the past several years. The demand for palladium precious metal has increased by 40% as of late.

Investing in palladium and precious metals is one avenue to take in order to have a more diversified portfolio. An investment portfolio may include standard stocks, bonds, and mutual funds along with a number of precious metals. Palladium is a possible investment selection for the following reasons:

1. Palladium has risen in demand over the past several years. There appears to be a stable market for this commodity with a current short supply. Prices may rise in the future since a combination of steady pricing and a short supply tends to create higher prices.

2. Some investments can be a hedge against inflation. The current economic instability of several of the credit markets and real estate markets has created a need for certain hedging strategies. The economic risk of investing in some of the standard monetary funds can cause a need for alternative type investments.

3. This kind of precious metal commodity is highly liquid and has a low risk level when compared to some of the standard and traditional investment strategies.

Palladium is one of the rarer precious metals, and this supply factor tends to make this precious metal appealing. Palladium is less costly to purchase for investment purposes that other more popular precious metals like gold. Demand for palladium seems to be rising lately, and prices for this metal may be increasing significantly to a profitable level. Investors may find that the obscurity of this important industrial element makes it a profitable choice for those investors wanting to diversify a standard investment portfolio. The strategy for investing in palladium may include watching this precious metal as it begins to rise on the open markets. Certain large industries often use this metal for medical needs and research and for other scientific and applied reasons. The automobile industry is ahead of other industries in its use of this metal. The significantly high demand for palladium for catalytic converters is as current as the 1990’s and the recent advent of the catalytic converter for the modern automobile.


Palladium Investing
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