Platinum vs Palladium – Precious Metals to Invest In

Platinum and palladium are two precious metals often overlooked by investors who prefer sticking with the more familiar gold and silver. However, both metals offer potential rewards to investors who know about the product and their markets.

Platinum

Platinum is a heavy metal similar to gold that is used extensively by the auto industry in catalytic converters. Nearly half of the yearly supply goes toward that purpose while the remainder is dedicated to jewelry, medical devices, and a small amount to investors. Like gold, this precious metal is easily worked, so it’s popular with jewelry makers, many of whom think its silvery-white appearance is more masculine than gold. Plus, it’s more durable than either gold or silver. Price-wise, platinum tends to be slightly higher than gold.

Palladium

Palladium is more common and less expensive than platinum (about half the price), but as it reacts similarly as a catalyst, it’s often used as a substitute for platinum in industrial applications. Palladium is less dense than platinum, so it’s less workable for jewelry, but is often combined with gold to make “white gold” pieces and is used in other products, such as watch components.

Investment Opportunities and Challenges

Investing in platinum and palladium presents both opportunities and challenges. Because they are in much smaller supply than gold and silver, their prices can be more volatile. Investors need to be aware of these fluctuations and time their purchases accordingly. Platinum and palladium also appear nearly identical to the untrained eye, so it’s important to know how to tell the difference and only deal with trusted sources.

Scarce Coins and Bars

Both metals are made into coins and bars, although because of their scarcity, they may not be as readily available as gold and silver. For those wanting to add a little platinum to their portfolio without spending a lot, fractional coins and bars are available as small as the 1-grain (0.065 gram) .999 Platinum Bar, available online from The Great American Coin Company®.

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