Understanding palladium prices
Palladium has become one of the most highly prized of all precious metals available to investors today. Its rarity, combined with its malleability and luster, make it appealing for people who want to buy and use it to grow their wealth.
However, before you invest in palladium, you should learn about its history and pricing over the last few decades. You can then decide if, when and how much palladium that you want to add to your own investment portfolio.
What is Palladium?
Palladium is one of the least recognized precious metals. In fact, it lacks the eons of history that gold and silver have as a form of currency or investment material. Many novice investors have never heard of palladium until they start to grow their portfolios.
Nonetheless, palladium is a silver-white precious metal that is closely related to and shares many of the same qualities as platinum. It is softer than platinum, however, and has a much lower melting point.
Its periodic table number is 46, and its symbol is Pd. It gets its name from the asteroid Pallas. Its name also traces to the Greek legend of the goddess Athena mortally wounding Pallas in battle.
The palladium most commonly in use today is mixed with one of two chemicals: Chloride or acetate. Palladium chloride and palladium acetate are easier and more practical to use in manufacturing and for minting coins. These compounds are less likely to suffer damages like tarnishing that can ruin the appearance and value of anything made with them.
The History of and Uses for Palladium
Naturally occurring palladium is exceedingly rare, which is why it is highly valued among investors today. In fact, only a few countries, such as Russia and South Africa, mine for and produce palladium. Because it is not produced in large quantities, palladium can command top prices among people who want to buy and own it.
Even more, palladium was not discovered until 1802. A chemist named William Hyde Wollaston receives credit as being the first person to discover the existence of this precious metal.
It also became quickly known that palladium is one of the most malleable precious metals with which to work. The fact that it is easy to work with and from which to create a variety of products makes it highly appreciated among manufacturers today.
Some of the most common products that include the use of palladium include:
<ul>
<li>Automotive parts</li>
<li>Dentistry supplies</li>
<li>Electronics</li>
<li>Photography equipment</li>
</ul>
Palladium is also used in many technological processes today.
It likewise is a common component found in many forms of currency throughout the world. The first coins to contain palladium were minted in 1966. Today, investors can purchase palladium coins and bars to add to their portfolios.
The Earliest Prices for Palladium
When investors began buying and adding palladium to their portfolios, they paid relatively low prices for it. In fact, the earliest recorded price for palladium stood at around $100 per troy ounce.
Today, however, the price for a troy ounce of palladium is exponentially higher. It is now common to find this precious metal valued at more than $1200 an ounce, rivaling the same prices charged for gold.
Even more, investors today appreciate the fact that palladium itself is not tied to any single government or economy, making it one of the soundest precious metals in which to put money. Factors like recessions or high inflation typically fail to impact the price of palladium negatively.
With that, people who invest in it often do not have to worry as much about their palladium investments as they might about paper assets like stocks and bonds. Because of its high value and sturdy performance in the commodities market, palladium remains a favorite among investors who want to build wealth for retirement.
Palladium Coins in the U.S.
The U.S. did not start minting coins made with palladium until 2010. That year, President Obama signed the American Eagle Palladium Bullion Coin Act, allowing for the creation of currency that contained palladium in it.
These first coins contained 99.95 percent pure palladium in them, weighed 31.120 grams and had a face value of $25. They featured a design called the Winged Liberty and were the creation of coin designer Adolph Weinman. The front side of the coin features Lady Liberty wearing a winged hat, while the back side of the coin depicts an American eagle, wings spread, pulling a laurel branch out of a rock.
The American palladium coins immediately gained popularity among precious metals investors and coin collectors alike. By 2018, they had a value of over $1300. A newer version of the U.S. palladium coin was minted in 2019 and quickly sold out.
The U.S. mint continues to produce palladium coins. These coins likewise continue to rise in price and value as the demand for them remains strong among precious metals investors.
The Historical Value of Palladium
Palladium was first traded as a commodity in 1967. Since its introduction to the precious metals market as a commodity, the price for it has increased by more than 400 percent.
When it first hit the market, palladium commanded a relatively low price of $100 per troy ounce. By 1988, the average closing price for this precious metal had climbed to just over $125 an ounce.
The price for palladium continued to rise in 1989, reaching an average of $145 per ounce. Prices fell notably in 1990 through 1992, averaging from $89 to $115 an ounce during those years.
However, prices climbed again in 1993 when the average price for an ounce of palladium topped $123. Prices have since climbed nearly every year, topping close to $300 per ounce in 1998.
The first year of the new millennium saw palladium top nearly $700 per ounce, only to fall back down to the $200 range during 2003, 2004 and 2005. The average price went back up to above $300 for an ounce in 2006.
Prices for palladium again reached the $600 mark in 2012. They soared above $1000 for an ounce in 2018. Since that year, prices have risen exponentially year to year.
By 2020, the average closing price for an ounce of palladium topped $2000. It reached above $2300 in 2022. The average price per ounce in 2023, however, has fallen to just over $1300 per ounce.
Why Track the Price of Palladium?
Despite the fall of the price of palladium in 2023, this precious metal remains one of the most stable for investors in which to put their money. Its prices rival those of gold because of how rare and versatile palladium is.
When you are serious about adding palladium to your portfolio, you can act in your investments’ best interest by keeping track of its pricing. It typically performs well, even during times of economic downturns and high inflation. It also avoids the monetary pitfalls that can devastate paper assets like bonds and mutual funds.
Further, you can buy palladium today in bars and coins, giving you the versatility and stability you want for your portfolio as a precious metals investor. By keeping track of the prices for palladium, you can determine at what point to buy it and in what quantities and forms.
Palladium remains a highly favored precious metal among investors today. It can help you build wealth for retirement and become a solid addition to your self-directed IRA or portfolio. Learn more about palladium and in what forms you can buy it when you contact a reputable bullion supplier like Sedona Bullion today.
