Key Trends in Baird Co Palladium Bars
Palladium bars outshines the four major precious metals when it comes to price. The high prices are driven by its acute shortage in recent years along with its high demand.
The uses of palladium are vast. From jewelry making, watchmaking, surgical instruments, dentistry to aircraft spark plugs and electrical contacts. Generally, a high percentage of this luxurious metal is consumed by the industrial markets.
On the side of supply, Russia and South Africa are the world’s chief palladium producers. In this article, we will discuss more palladium bars and how the metal has been fairing in the market. Checkout this link https://www.metal-res.com/gold-ira/baird-co-palladium-bars/ if you want to learn more.
Why do people trade palladium?
As mentioned, the demand for palladium continues to increase by the day. This might also be the main reason why most people are in a hurry to purchase it. However, as with any investment, it is important to seek professional help before making any decisions. That said, here are some of the reasons why traders might consider investing in palladium.
Use in the automotive industry
The automobile market is among the highest consumers of this precious metal. As the world continues to battle environmental pollutants, automakers are forced to look for emissions-reducing components.
About 85% of this metal is used in car exhaust as a catalytic converter. Palladium converts toxic pollutants into water vapor and less-harmful carbon dioxide.
This has seen an increase in demand for the commodity in most countries including India and China where air pollution is on the rise.
Likewise, the introduction of a low-interest-rate environment by the most state tend to bode well for the automobile industry. Low rates mean more people can easily access credit to finance automobile purchases.
- Portfolio diversification
The majority of traders invest their money in real estate, stock market, bonds among others. However, most of these investments are subject to inflation and market turbulence. Precious metals are considered among the safest forms of investment. They also provide a way to diversify portfolios without too much risk. Diversifying your investment can prevent you from losing all your money should there be any disaster.
- Scarcity
The fact that there are only two main suppliers of palladium globally, there is a real possibility that the supply of this metal is expected to go down in the future.
Likewise, the new mining regulations imposed on the South African miners could lead to low supply and higher prices. The USA is a leading importer of Russian palladium.
However, it is feared that the recent tension between USA and Russia could fuel increased prices of palladium. When supply is low and the demand is high, the prices are likely to become stronger, therefore, increasing your chances of making profits.
Why is palladium so expensive?
Gold has always traded above all other four precious metals. However, recently there has been an increase in the price of palladium, almost six times the initial price.
As the demand for emissions-reducing catalysts increases so is the demand for palladium. According to research, more people are buying gasoline-powered vehicles which use palladium as opposed to diesel cars which depend mainly on platinum.
Diesel is a major environmental pollutant and, in the measure, to reduce environmental pollution, there has been an increased demand for palladium. Also, the scarcity of this metal contributes highly to its pricing. Click here to read more about investing in precious metals.
How to invest
- ETFS
You can invest your metal in exchange-traded funds (ETF) and expect massive returns. Exchange-traded funds backed by Palladium are comparable to index funds but are purchased or sold like the stocks on exchange. The performance of the metal is monitored over time and investors with large palladium reservoirs get to benefit from most exchanges. However, palladium ETFs are limited to a few companies only.
- Bullion
Bullions allow you to hold the physical metal directly. You can choose to purchase either bars or bullion coins for growth of the portfolio . This option is ideal for investors who wish to invest with both large and small quantities of money. Other options include wafers and palladium bars.
However, these two are scarce. Purchasing physical metal is a wise way of investing in the world’s greatest precious metals. With the rising demand for this metal, you’re most likely to get a high return in the future.
- Stocks
If you don’t know where to store your physical metal, you can still benefit from the palladium market by purchasing stocks of palladium companies. While this form of investment is lucrative, it can be a bit tricky. This is because palladium production is limited to countries having primary platinum mines. For this reason, it is difficult gaining exposure to palladium purely. Before choosing this method, find out whether it is possible to invest in palladium stocks in your country.
- CFDs
Contract for difference (CFD) allows you to predict palladium prices. All you need to do is open an account with a palladium company and add money to your account. This way, you can enjoy palladium prices without the need to buy futures, shares options, or EFTS.
Conclusion
Although palladium is relatively new in the market, the growing application of this metal is likely to increase its demand. You can reap huge profits from investing in pallidum now and in the future. Thanks to its scarcity and increased demand, pallidum prices continue rising each day. While palladium has the same appearance and durability as platinum, it is more affordable. It is also lightweight and easy to maintain. You can choose to purchase your metal in bars or coins. Banks are a better choice if you’re to store them in a bank while coins are ideal for home storage.
