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Palladium offers some of the same compelling supply/demand fundamentals and amazing industrial properties as platinum, but at a far lower price!
When you buy palladium from ILB you can expect:
Palladium's main application, like platinum, is catalytic converters for automobiles. But its uses are rapidly growing in other industries -- such as electronics, alternative energy, and dental implants.
Palladium bullion actually sold for a higher price than platinum for a time, but today the price of palladium coins and bars is less than half that of platinum. The current price disparity may be an investment opportunity -- given the similar properties and similar applications and similar annual palladium production (around 6 to 8 million ounces a year).
Because palladium, like platinum, can be used as a catalyst in emissions-reducing devices, many automakers have opted for palladium and its lower price. Perhaps events in the year 2000 foreshadow what is to come. Automakers, including Ford and General Motors feared supply disruption and began stockpiling the metal. The price ultimately spike to over $1000 per ounce, well above the platinum price, before falling back.
Supply disruption is a genuine possibility. Most of the world's palladium production comes from Russia and South Africa - where risks including power outages, nationalization of mines, and/or governmental restrictions on exports can play havoc in the industry.
A decision to buy palladium coins, while very speculative, may turn out to be an extremely profitable investment for those who accumulate it in physical bullion form. Investors comfortable with the risks, should consider diversifying some of their precious metals portfolio into palladium.