Jump to content
  • The above Banner is a Sponsored Banner.

    Upgrade to Premium Membership to remove this Banner & All Google Ads. For full list of Premium Member benefits Click HERE.

  • Join The Silver Forum

    The Silver Forum is one of the largest and best loved silver and gold precious metals forums in the world, established since 2014. Join today for FREE! Browse the sponsor's topics (hidden to guests) for special deals and offers, check out the bargains in the members trade section and join in with our community reacting and commenting on topic posts. If you have any questions whatsoever about precious metals collecting and investing please join and start a topic and we will be here to help with our knowledge :) happy stacking/collecting. 21,000+ forum members and 1 million+ forum posts. For the latest up to date stats please see the stats in the right sidebar when browsing from desktop. Sign up for FREE to view the forum with reduced ads. 

Your take on palladium?


George

Recommended Posts

Would it be a profitable to invest in palladium today at 554 dollars pr ounce? Its rediculos low in Price, I mean its more rare than platinium. I think myself buying is a good idea, but have no idea, when it Will peak.

Link to comment
Share on other sites

Is it rarer than Platinum? According to my research (which may well be wrong) the annual production is 215 Tonnes vs 165 Tonnes Platinum. Rhodium by the way has an annual production of 25 Tonnes and is very cheap compared to the $10,000 an ounce it was a few years ago. That is not an endorsement of the metal or a case to invest however ;)

As roughly 80% of the entire annual production of the Platinum group is used by the automotive industry via various types of catalytic converters, I suppose a good portion of the investment consideration should be - do you think the car industry, or specifically diesel cars are going to be in greater demand in the future? 

Link to comment
Share on other sites

I read palladium, is even rarer than platinium, and certainly less talked about. I guess more cars are being produced each year. And palladium has been replacing platinium as a lower cost material for catalytic converters, since it Can perform the same function as platinium - at half price. Thats why I guess its a good long/short term investment.

Link to comment
Share on other sites

I agree I think both platinum and palladium still have a lot of growth potential, because the introduction of electric vehicles has been slow and will remain so for as long as oil is affordable, which could be for many years thanks to shale. If you go all on Palladium you are playing this aspect.

If you add Platinum you are also exposed to its use as Jewellery and as an Investment metal as well as a wider array of industrial uses.

If you add Rhodium you are taking a punt similar to Palladium, but because it is such a rare material and 80% sourced from one region in the world (South Africa) it is prone to supply shocks and so a spike in price is something that is probable to happen at some point. The worlds supply of Palladium on the other hand is mined in Russia (38%), South Africa (35%), Canada (11%) and to a smaller degree in the US, Zimbabwe and elsewhere making it less susceptible to shocks. Rhodium has a few interesting unique uses including in optics, nuclear power, and is used as plating on jewellery. It is worth noting that 30% of the 25 tonne annual supply is actually from recycled catalytic converters which may or may not be a mitigating factor against a supply shock. Rhodium is a pure gamble in my view, especially when taking in account its historic price range. 

Another almost irrelevant but interesting characteristic of Palladium is it readily absorbs hydrogen and has been a key component in experimental cold fusion since the late 80's. Don't hold your breath on that one but it is an interesting piece I found on it while I was researching.

Just my thoughts taken from research I have done on the group. I would say take a look into it and decide yourself based on what you find. As I said, according to my fairly recent research Palladium is not as rare a metal as Platinum so perhaps the rest of my work could be incorrect as well. I may need to go over it again.

Link to comment
Share on other sites

I think it is best to treat platinum and palladium as being primarily industrial metals, so if you invest in them it is because you are optimistic about the prospects of economic growth leading to more car sales. Like silver, they do have a monetary premium, so if gold rises, they will ride its coat-tails. Another feature of palladium is that according to industry sources, the Soviet Union used to mine and stockpile masses of it, and since 1990 Russia has been destocking. Supposedly there will come a time when stocks run low and this ends, and when this happens, the price might rise, but how much truth there is in all this is unknown to me.

Link to comment
Share on other sites

I have positions in Palladium and Platinum ETFs which are doing quite well at present. Both have been on an absolute tear in the last few sessions.

I think of all the precious metals, Platinum, Palladium, & Silver all have much better upside potential than gold over the next few years, simply because they have all been beaten down far more than gold. Platinum should at least get back to parity with gold in the next 1-2 years.

I don't pretend that I'm an expert on the industrial usages of all these exotic metals, I just operate on the basis that the pm markets go up and down like any other. This is also the reason why I don't buy physical in these metals - they would be far too illiquid. I'll stick to silver & gold for physical, and trade the ETFs and miners

Link to comment
Share on other sites

Yes I would suggest perhaps a look at SPLT for platinum, SPDM for Palladium. They are ETF's by Blackrock, the same Blackrock that has suspended sale of its gold ETF shares so you know they really are holding the metal. This is just a suggestion, please research them before buying into it, I am sure there are others out there that can do the same or better.

Alternatively you can buy physical but we come to the problem of VAT. For Rhodium I have found no alternative but physical which makes it potentially a very long hold. 

Link to comment
Share on other sites

Some places allow allocated holdings of these metals as well, if that's preferred. It avoids VAT but probably brings a looser spread than an ETF. On the other hand, the metal's yours rather than a share backed by metal (hopefully) being yours.

 

GoldMoney, for example, will sell you platinum and palladium in an allocated account. Not Rhodium, though.

Link to comment
Share on other sites

This is an oldish video, but it goes into some depth regarding stastistics. It does mention palladium is hatder to predict based on ratios than silver and platinum but it still has statistic merit palladium starts at appeox 5minute30 if you are too busy to watch it all.

Link to comment
Share on other sites

  • 1 year later...

Palladium has been the outstanding performer in the PM complex. 

+42% YoY, and within a few % of its all time high.

At $800 it is near parity with Platinum ($950). It used to be that they used Palladium as a substitute for Platinum in catalytic convertors.. but if Palladium is as expensive as Platinum does this negate any cost saving?

I'm personally looking at getting some exposure to Platinum as I think it's too cheap at current prices, but it will likely be via an ETF rather than physical. 

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...

Cookies & terms of service

We have placed cookies on your device to help make this website better. By continuing to use this site you consent to the use of cookies and to our Privacy Policy & Terms of Use