Platinum & Palladium
888.700.4148
Call Now
Why invest in Platinum & Palladium
While gold and oil investing tend to get most of the headlines, there are other commodities in the market that are currently rising considerably in value, but they are not getting the same attention. Platinum and Palladium represent powerful precious metals investing opportunities thanks to their current rise in the marketplace.
There are a number of reasons why platinum and palladium are rising in value and are poised to be powerful investment opportunities. For those who are looking at alternatives to investing in gold or oil, perhaps to help diversify the portfolio and take advantage of new opportunities for profits.
Auto Manufacturing Opportunities
One reason why platinum and palladium are expected to rise sharply in value in the near future is China’s decision about importing “dirty” coal and actually pursues more environmentally friendly measures. This means that one of the world’s largest auto makers may require more platinum and palladium for their vehicles to help clean up the air.
In addition, both platinum and palladium are in short supply at this moment after enjoying a surplus in 2011. Today, rising costs in mining these precious metals has accelerated the price even further. Given the volatility of the marketplace, there are plenty of opportunities for solid investment.
Investing in Platinum
Platinum is a metal that has always been in huge demand thanks its usefulness in auto manufacturing, electronics and the like. Today, most of the world’s supply of platinum comes from Russia and South Africa, two countries that have not enjoyed a great deal of stability in terms of mining this precious metal.
This is primarily because most of the mines in both countries have not expanded their output in recent years. Plus, there are no plans to produce more platinum in the short term which means that supply levels will continue to shrink.
Investing in Palladium
Currently, the palladium market is facing a supply shortage with demand that is continually growing. With roughly 80% of palladium coming from Russia and South Africa, the more auto sales are boosted in countries around the world, the more this metal will continue to rise in value.
This is especially true because Canada, which is also a source for palladium, is not reaping the benefits of the increased demand for this precious metal. The company primarily responsible for the mining of most of the palladium in Canada has not expanded in recent years which translate into reduced supplies.
Frequently Asked Questions
Learn about platinum and palladium investing, industrial demand, diversification benefits, and precious metal market trends.
Why do investors buy platinum and palladium?
Investors buy platinum and palladium for portfolio diversification, industrial demand exposure, and potential long-term price appreciation.
What industries use platinum and palladium?
Platinum and palladium are widely used in automotive catalytic converters, electronics, jewelry, and industrial manufacturing.
Are platinum and palladium considered precious metals?
Yes, platinum and palladium are rare precious metals valued for their scarcity, industrial applications, and investment demand.
How do platinum and palladium prices fluctuate?
Prices are influenced by industrial demand, mining supply, economic conditions, global markets, and geopolitical events.
Can platinum and palladium help diversify investments?
Yes, these precious metals may help diversify portfolios by adding exposure beyond traditional assets and gold investments.
Why is palladium important in the automotive industry?
Palladium is commonly used in catalytic converters to help reduce vehicle emissions and meet environmental regulations.
Is platinum rarer than gold?
Platinum is generally considered rarer than gold because annual platinum production is significantly lower worldwide.
What affects platinum and palladium investment demand?
Investment demand can be influenced by inflation concerns, industrial growth, market volatility, and global economic conditions.
Can platinum and palladium be held in retirement accounts?
Certain platinum and palladium bullion products may qualify for self-directed precious metals IRA accounts.
Why are platinum and palladium considered alternative investments?
Platinum and palladium are viewed as alternative investments because they combine industrial demand with precious metal value.