Tags: Money | gold | palladium | investment

Is Gold Better Than Palladium as an Investment?

By    |   Monday, 15 June 2015 03:37 PM

Owning a precious metal in the form of coins or as a bulk commodity is an emotional investment as well as a financial hedge against an uncertain economy. Some investors consider whether gold is a better investment than platinum or its more rare cousin, palladium.

New Threat: Glaziev Directive Could Instantly 'Reset' the Value of the Dollar, Destroy Wealth (See Proof)

Palladium is one of six metals referred to as platinum group metals and is 15 times more rare than platinum, according to SilverSeek.com. Nearly half of it is mined from one source in Russia. Although used in jewelry, the bulk of it is mined for industrial use.

Palladium is as good as and perhaps better than gold as a hedge against inflation and in providing a safe investment vehicle, according to Investopedia.

Although more rare than platinum and relatively unknown, palladium has a growing demand in industry, particularly as an alternative to platinum as a material used in catalytic converters, Outsider Club said. The price of palladium has increased with its use in the auto industry, but it still costs less than platinum.

Free Retirement Calculator: When Can You Retire? — Click Here to Find Out

As with any precious metal, investors can buy and keep the physical metal. Aside from the pleasure of looking at it, palladium is often stored for security at an extra cost. An easier way to own palladium is by investing in an exchange-traded fund. The certificates issued for ownership are backed by the possession of the physical metal stored in the fund owner’s vaults and is available if investors want to take delivery.

Palladium is currently more expensive to purchase than gold because of its scarcity. Unfortunately, considering its scarcity and the limited market for it, it has been much more volatile in trading than gold, an important consideration when determining its value to your investment portfolio, SilverSeek.com said.

Since the size of the palladium market is so small, but there is a demand for it both in jewelry and for industrial use, some speculators think the price may rise for a good investment.

As the political unrest lowers in the countries in which it is mined, owning this precious metal becomes a possible investment opportunity, according to Zacks. Including gold or palladium in your portfolio is a matter of how you want to invest, the amount of money you have to invest, and how you feel about the future market for palladium.

Watch Now: Steve Forbes Slams the Fed in This Video

Related Stories:

© 2020 Newsmax. All rights reserved.


   
1Like our page
2Share
Money-Wire
Owning a precious metal in the form of coins or as a bulk commodity is an emotional investment as well as a financial hedge against an uncertain economy. Some investors consider whether gold is a better investment than platinum or its more rare cousin, palladium.
gold, palladium, investment
444
2015-37-15
Monday, 15 June 2015 03:37 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved