When you consider investing in precious metals, the commodities that probably come to mind are gold and silver, and maybe even platinum. These investments are popular in all circles, especially in a down economy. They are prized for their safety and liquidity. But did you know that there is another precious metal that may be even more profitable in the long run? Palladium is an option that many overlook, but it should be considered as a part of any precious metals portfolio. You can discover why this unique metal has become so popular among investors in recent years.
Palladium is a unique precious metal for several reasons. It has a soft and malleable texture and a low melting point, and although it is a beautiful, lustrous metal, it is not often used in jewelry. It is dense, however, and can be used as a component in white gold or as a replacement for silver. In recent years, it has been possible to invest in palladium bullion coins.
As other precious metals have seen their fortunes rise during the world’s recent financial woes, so has palladium. This metal, which had previously been thought to be a riskier investment, has seen record increases in price over the last two years. Investors can purchase this unique precious metal through the Equity Traded Fund, which is listed on the New York Stock Exchange, or in coins or bar form.
Since 2009, when palladium was listed around $200 per ounce, its price has increased an astonishing 400%. It is not a good idea to base future investments purely on past performance, but this shows you just how well this metal has been performing in recent years. One reason for this is that many industries use it, including the automobile industry. This metal is used in created catalytic converters, which is an automobile part used in every vehicle that comes off the assembly line. As this metal gets used up through industry uses, the demand will increase even as the supply dwindles.
When you are ready to start investing in precious metals like palladium, it is a good idea to make your first step a conversation with a trusted financial planner. No investment is completely safe, so do your homework and research price histories and trends in the market before you put your money down. If you plan carefully, you can make your financial assets safe and secure for years to come.