Palladium can be a valuable addition to your precious metal holdings, but it depends on your investment objectives. Some people create entire precious metal wallets without exposure to palladium, while others consider it a valuable inclusion. As for precious metals, platinum and palladium ingots lack the attention and consideration that gold and silver receive. However, in times of economic darkness, platinum and palladium work well as safe assets and as a hedge against inflation.
In addition, unlike gold, white metals (platinum, palladium and silver) tend to withstand declines in the precious metals market better than gold due to their high industrial value. For these reasons, precious metals investors are wise to expand their portfolio with metals other than gold and silver, making platinum and palladium excellent diversification tools. But which one should you choose? Both platinum and palladium are natural members of the Platinum Group (PGM) family of metals. Iridium, osmium, rhodium, and ruthenium are also considered to be PGM.
Platinum group metals are widely known for their catalytic properties and their resistance to wear, tarnishing and chemical degradation, qualities that make PGMs highly appreciated by the automotive and jewelry manufacturing industries. Platinum and palladium, in particular, are like two sides of the same coin. In fact, they are often found mixed together during the extraction process. In addition, platinum and palladium are almost identical; it's hard to see any difference between them.
If you're still learning about investing in platinum and palladium, consider visiting our knowledge center and blog to learn more. To get started, see our overview of investing in palladium, as well as this infographic that shows the many industrial uses of PGMs. Demand for gold has also grown among investors. Many are starting to see commodities, in particular gold, as an investment class to which funds must be allocated and properly diversified.
SPDR Gold Trust became one of the largest ETFs in the U.S. UU. As with any investment, the price of platinum can vary, as can the stock markets. To decide if investing in platinum is the best use of your money, it's important to know what may affect the platinum market.
As with most everything, it all comes down largely to supply and demand. Therefore, we need to consider what the drivers are. The metal is expected to remain scarce, especially since Russia, one of the biggest exporters of the metal, remains excluded from international trade. If all the platinum in the world fits in your house, then every ounce of palladium can easily enter your living room.
The precious metals market is dominated by gold and silver due to greater demand and familiarity among investors compared to other valuable metals. When part of a diversified investment account or precious metals IRA, palladium can further protect your assets from inflation and economic uncertainty. Every investment involves a certain degree of risk, however, by diversifying, you can reduce the overall risk of your portfolio. In general, investors use palladium to diversify their precious metals portfolio by maintaining a certain percentage relative to their investments in gold and silver.
Precious metal certificates are essentially promissory notes; the issuer, an ingot bank, agrees to exchange them for ingots if requested, but investors do not own the ingots. We will explain what it really means to invest in platinum, what can affect the price of platinum, the different options you have when buying platinum and the advantages and disadvantages of buying this metal. Now, investors also have the possibility to invest in precious metals in accordance with environmental, social and governance (ESG) standards and values, as companies put these principles at the forefront and strive to achieve a greener future. In fact, not only do central banks not have silver, platinum, or palladium in their official monetary reserves, but they cannot maintain them.
Several online marketplaces now allow investors to securely buy, sell and redeem digital assets backed by gold and other precious metals. The term “Sprott ESG approved gold” refers to gold that is physically indistinguishable from other types of gold, but that has been obtained and produced in a manner consistent with the ESG standards and criteria used by the sponsor (the “ESG Criteria”), which are designed to provide investors with a higher level of ESG scrutiny, in addition to disclosing the origin of the source metal and including an evaluation of mining companies and mines. .
