Live Metal Prices / oz
Gold: 1802.57 USD
Silver: 20.82 USD
Platinum: 962.50 USD
Palladium: 2221.00 USD
Rhodium: 14900.02 USD

Investing in Platinum vs Palladium

Precious metals have been sought after for hundreds of years.  Investors, industrialists, and individuals choose to buy precious metals from the more famous ones like gold and silver to the lesser-known metals like platinum and palladium. Platinum and palladium have always been around, but they are not as famous for investment as other precious metals. It is only recently that both these metals gained attention from bullion investors.

So why has the demand for platinum and palladium changed so much?

Platinum is mined alongside gold. However, due to the high demand and popularity of gold, platinum did not get attention for investment and was essentially ignored until its industrial applications were discovered.

Now that platinum is being mined for multiple uses, its supply is limited. A large amount of platinum, nearly half of it, is used by the automobile industry to make catalytic converters. Using platinum in combustion engines helps to control emissions by acting as the catalyst in the ignition of hydrogen.

An additional third of mined platinum is used by the jewelry industry, and some platinum is used in the medical industry. 

Finally, a recent trend in purchasing platinum as an investment has also appeared, putting additional pressure on the supply of the white metal.  

Palladium is a different elemental metal yet from the same metal group as platinum. Due to the similar characteristics as platinum, palladium is being used in almost all the same industries and for the same applications as platinum.

From making catalysts to jewelry, palladium is widely considered platinum's sibling. It would be not wrong to say that both these metals are the same in front of an untrained eye.

The difference in platinum and palladium comes down to the density of both these metals and the difference in price. Platinum is denser than palladium, and hence, its price is almost double. The use of these metals in industrial and medical fields has made their price go up in recent decades. However, it is the use of platinum and palladium in automatic catalytic converters has proven to be a game-changer for their demand. Both these metals are still highly volatile and conservative investors avoid them for this reason.  However, the limited supply of both these metals helps to stabilize their market price.

Platinum and Palladium are available for investors in 1 Ounce and 10 Ounce bars, and 1 Ounce platinum and palladium coins are also available. Accumulating physical stocks of precious metals is itself popular for some investors. If you are interested in precious metals, consider adding platinum and palladium to your portfolio.