The Advantages of Investing in Palladium

Smart Finance

In the wake of the economic crash of 2008, many investors are still feeling shocked, betrayed and afraid of the market. While most families lost parts of their IRAs, the money in their pension plans, or small brokerage accounts, others lost millions. With the egregious Madoff investment scandal barely a year after the stock market started to slide downwards in October of 2007, many investors are still alarmed by what devastating damage can occur in just several years’ time. After decades of economic stability and at least above average yields from market investments, many Americans ???? justifiably felt as through their money was safe in traded funds and securities. The initial peak and fall followed by over a year of steadily plunging market performance was unexpected and hard to handle. To make matters worse, the extended market slump came with some of the highest unemployment rates in recent history, putting those who lost thousands out of work with no way to cover their losses. In recent years, many Americans have been turning to alternate means of investments, some in an effort to protect what they have and some to prevent the same sort of personal losses from happening again.

There are several options for keeping money safe from the effects of the market. Keeping money in cash is always a backup, and many wealthy individuals do have a cash backup at all times, just in case. Although keeping your money in a safe, a savings account or even in a fixed income fund isn’t a great way to garner a large return, these methods will protect your money quite effectively. Since cash doesn’t lose its value, your investments won’t grow much but they also won’t shrink, either. Investing in commodities has become another common method. Commodities are goods that have a market demand with no regard to source. Wheat, wool and oil are examples of commodities. While many of these goods are somewhat difficult to invest in due to a demand largely created by market performance and lack of timely research, there are some notable exceptions. One particular branch of commodity that has been generating excitement and drawing attention over the last several years is precious metals.

Money Wise

Precious metals investing is becoming more and more common, even more so in the wake of the economic devastation in 2008. People are looking for ways to keep the investments they hold safe and secure in a way that keeps value and won’t be rendered worthless in the event something catastrophic happens in the near future. Precious metals, such as gold, silver, platinum or palladium, are all very valuable and can help an investor build or supplement a portfolio in a way that will not be influenced in the same manner as equity securities. The interest in precious metals as a commodity is twofold. An investor can have a tangible object if they desire rather than an intangible portfolio whose position could change at any time. Additionally, an investor can have an investment that is virtually untouched by the market.

There are quite a few advantages to investing in precious metals. These sorts of metals, like gold and silver, have long histories of use. Gold in particular was a status symbol of wealth and royalty in many early cultures. Gold was used as a form of general decoration, for expensive utilitarian uses like plates and flatware, and as jewelry. This historical legacy of beauty and luxury makes gold highly desired even today. In a more practical sense, precious metals are a logical investment because they are largely safe from outside economic factors and will never be rendered worthless. While virtually any other form of investment, especially ones with a high risk factor, can perform poorly and be declared worthless, this is not true of precious metals.

While most commodities have dozens of uses, precious metals like gold, silver, platinum and palladium have very practical purposes outside of making jewelry. Where commodities like coffee beans only have one major use, precious metals have thousands. They are used for wiring and conduction, in building electronics and power devices like solar panels and fuel cells, in medical and dental equipment and procedures, and dozens of other important elements of daily life. Additionally, investors can easily house a large investment in precious metals in their home. Storing a few thousand dollars in bullion is far easier than storing a few thousand dollars in wool, which would take up an inordinate amount of space. Due to their usefulness, history of value and current supply and demand, precious metals can be a worthwhile investment. While precious metals will be affected by the economy and factors like inflation, these impacts will be far less than the effects to marketable securities.

Although gold, silver and platinum are compelling investments, palladium in particular has been growing rapidly in popularity over the past several years. Palladium, a silvery lustrous metal, is very rare and highly sought after. While recycled palladium from catalytic converters is readily available, ore deposits are not as common. This unique quality makes palladium a very desirable investment medium. Palladium is the least well known of the precious metals. It doesn’t have the extensive background gold or silver can boast and it is not as commonly used in jewelry as platinum. However, its large quantity of practical uses make it highly desired and continue to drive the price of this commodity up and up.

For those interested in getting started in palladium investing, the options are numerous. The most traditional route is the purchase of physical assets, like palladium bullion or coins. There are many reputable dealers who sell these commodities. Monex, an industry authority in precious metals ownership, sells these sorts of investments at industry prices. The company also allows investors to speak with financial advisors and stores investments for their clients who wanted an extra level of safety and security. Legitimate vendors like this are the best place to start looking. For individuals who are more interested in investing in palladium equity, exchange traded funds, or ETFs, can be great resources. These funds trade on national markets much like other securities but their values are influenced by market value of the commodity in question on any given day. An example of a palladium ETF is ETFS Physical Palladium Shares ETF, which trades as PALL on the New York Stock Exchange.

Although a certain stigma has been attached in past years to the idea of buying gold or other precious metals, the truth is that investing in precious metals can be a great way to protect one’s assets in a way that will continually grow and develop as supply and demand shifts. For investors who were burned by the economic collapse or who want to protect themselves and their futures, there are few options better than precious metals.

Sources:
http://etf.stock-encyclopedia.com
http://www.forbes.com/2010/06/22/investing-precious-metals-personal-finance-gold.html
http://www.dummies.com/how-to/content/precious-metals-investing-for-dummies-cheat-sheet.html
http://etfdailynews.com/2013/02/07/the-case-for-investing-in-palladium-for-2013/

The Advantages of Investing in Palladium
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