Although palladium is a less familiar precious metal, palladium bullion coins may present a collecting or investment consideration. Many investors nevertheless question whether such coins will prove worthwhile over the long term, especially compared with other precious metals. This article outlined reasons palladium investing could be viewed as a sensible financial consideration.
Adoption by Government Mints
The United States began minting palladium bullion coins as the American Palladium Eagle only in 2017. Other nations, including Canada and Australia, had already minted palladium coins for several years. The American Palladium Eagle and many foreign palladium issues have been popular with collectors because they are relatively scarce.
Supply and Demand
Palladium is a platinum group metal (PGM) used extensively by the automotive industry and by chemical, electrical, jewelry, and dental industries. It is an important component in catalytic converters. The original article stated that demand for environmentally friendly cars was rising along with palladium demand. At the time of publication, it reported demand exceeding supply, increasing the value of palladium bullion and palladium bullion coins.
Rarity of Palladium
Palladium was discovered by an English chemist in 1803 and, compared with gold, silver, and platinum, is a relatively recently discovered precious metal. This contrasts with platinum, which was discovered in 1735, and gold and silver, known and used for thousands of years in coins, jewelry, and industrial applications. Beyond that relative recency, palladium is substantially rarer than its precious-metal counterparts. Scientists estimated it was 15 times rarer than platinum, 30 times rarer than gold, and more than 100 times rarer than silver.
Palladium Compared to Other Coins
At the time of publication, these coins were described as highly valuable. Public demand for palladium was nevertheless lower than demand for gold, silver, and platinum bullion coins, and investors had not regarded them as an investment vehicle for as long as those metals. Palladium therefore had less liquidity than other precious metals. Depending on the chosen coin, selling it could also be somewhat more difficult. The article also noted strong industrial-market demand for palladium and described these coins as one possible way to diversify an investment portfolio.
When this article was originally published, Atlanta Gold & Coin Buyers reported offering competitive rates on coins and bars across precious metals, including palladium. Readers interested in buying palladium coins for a collection or looking to sell were invited to request an appointment by calling 404-236-9744.
