What is Palladium?

Palladium is a chemical element that was first discovered in 1803 by William Hyde Wollaston. The metal’s symbol is Pd and its atomic number is 46. Palladium has a lustrous, silvery-white appearance and it belongs to a group of elements known as the Platinum Group Metals, or PGMs. Palladium has the lowest melting point and is the least-dense of this group of metals which also includes platinum, rhodium, ruthenium, iridium and osmium. One of the primary uses for this metal is in the production of catalytic converters.

Palladium as an Investment

Palladium has become an increasingly popular investment vehicle. Unlike gold, which is used primarily for jewelry and investment purposes, palladium is also used-heavily in modern industry. In 2019, the price of palladium overtook the price of gold, catching the attention of investors. As a hard, dollar-denominated asset, palladium can potentially provide some significant benefits to an investment portfolio. Some of the potential benefits include:

  • Portfolio diversification
  • Inflation hedge
  • Upside price potential
  • Hedge against currency weakness
  • Zero counterparty risk

There are numerous ways to make investments in this metal. Investors can buy shares of companies involved in the mining or production of palladium. There are also ETFs available designed to track the performance of palladium. For investors who want the physical metal, both palladium bullion coins and bars are available for purchase. In addition to bullion coins, various proof versions are also available.

As palladium becomes increasingly popular with investors, more varieties of coins, bars and possibly even rounds may be seen.