While palladium is a lesser-known precious metal, palladium bullion coins can offer an investment opportunity for collectors. However, many investors wonder if these coins will be worth it in the long run, particularly when you compare it to other precious metals. Here’s why investing in palladium can be a smart financial idea.
Adoption by Government Mints
The United States only started minting palladium bullion coins in the form of the American Palladium Eagle in 2017. However, other countries, including Canada and Australia, have been minting palladium coins for several years. The American Palladium Eagle and many foreign palladium coins are popular amongst collectors for their relative rarity.
Supply and Demand
Palladium is a platinum group metal (PGM), and it is used extensively in the automotive industry, as well as the chemical, electrical, jewelry, and dental industries. Palladium is a vital component of catalytic converters. Hence, as the demand for eco-friendly cars rises, so does the demand for palladium. At this point, the demand outweighs the supply, which is increasing the value of palladium bullion and palladium bullion coins.
Rarity of Palladium
Palladium, discovered by an english chemist in 1803, is a relatively new precious metal when you compare it to gold, silver, and platinum. This compares to platinum, which was discovered in 1735, and gold and silver, which have been known and used for thousands of years for coins, jewelry, and industrial purposes. In addition to the relative recency of palladium, it’s far more rare than its precious metal counterparts. Scientists estimate palladium to be 15 times more rare than platinum, 30 times more rare than gold and well over 100 times more rare than silver.
Palladium Compared to Other Coins
These coins are highly valuable at the moment. But, there is less public demand for palladium when you compare it to gold, silver, and platinum bullion coins. And, investors haven’t seen them as an investment vehicle for as long as the aforementioned metals. Therefore, palladium has less liquidity than other precious metals. In addition, depending on the coin that you choose, it may be slightly more difficult to sell these coins. However, there is a high demand for palladium in the industrial market. Therefore, these coins can be a great way to diversify an investment portfolio.
Atlanta Gold & Coin Buyers offers competitive rates on coins and bars of all precious metals, including palladium. If you’d like to buy palladium coins for your collection or are looking to sell, request an appointment by calling 404-236-9744.
Tony Davis
Tony Davis is the owner of Atlanta Gold & Coin Buyers, a full service Atlanta based coin and bullion dealer specializing in buying, selling and appraising coins and coin collections of all types and sizes.Tony frequently writes on various economic and numismatic related topics affecting the coin and bullion markets and has been published on some of the industry’s leading websites, including Coin Week, the American Numismatic Association, Coin Collector, Coinflation, and Coin Auctions Help, just to name a few.Visit Atlanta Gold & Coin’s website at atlantagoldandcoin.com to obtain additional information on the products, services and educational resources offered by his company. Tony can be reached at sales@atlantagoldandcoin.com or at 404-236-9744
