Manhattan Gold & Silver Logo

Is It Worth Investing In Palladium in 2021?

palladium element

Since 2020, some precious metals like gold and rhodium have seen their values reach new heights. In 2021, one precious metal is hot on the heels of rhodium in terms of its explosive growth in value: Palladium.

Let’s find out what palladium is and whether you should consider investing in it in 2021.

What Is Palladium?

Palladium is a rare and lustrous silvery-white metal. It was discovered in 1803 by the English chemist William Hyde Wollaston, who coincidentally also found rhodium around the same time.

This precious metal is typically found in South Africa and Russia, with a few deposits located in Canada and the U.S. Only a handful of companies manage the production of palladium globally.

The demand for palladium mostly comes from its use in the automotive industry as a material for building catalytic converters, which are exhaust emission control devices that minimize pollution from cars.

Factors Impacting the Price of Palladium

For anyone giving consideration to investing in palladium, it’s important to consider the following factors driving palladium prices.

  1. Supply Problems: The supply deficit for palladium is likely to support higher prices in the future. Russia, a top provider of platinum group metals, is currently experiencing production problems that could significantly contribute to supply narrowness for palladium for the foreseeable future.
  2. Automotive Industry Demand: One of the most important factors to keep an eye on is automotive production. Continued demand for vehicles will keep palladium’s value stable or on the rise. This is due to its use in catalytic converters and the fact that it might substitute platinum in converters soon.
  3. The Strength Of The US Dollar – A weakening of the dollar could have an impact on palladium prices and precious metals in general. Palladium is usually purchased from suppliers in US dollars. Any devaluing of the dollar could potentially disincentivize top suppliers, which could lead to palladium supply problems and cause a price increase.

Should You Invest In Palladium?

Whether or not you should invest in palladium depends on your investment style. If you’re looking to diversify your portfolio, palladium is very similar to rhodium in that its price volatility could benefit you. However, if you’re not able to take on risks and withstand the volatility of palladium, you should reconsider investing.

If you have any palladium scrap, now is a great time to convert to cash. Be sure to consider exchanging your lot with a precious metals refiner like Manhattan Gold & Silver. We offer quick and fair payouts, ensuring you are getting the best possible deal.

Skip to content