Palladium is Rare Plus, restrictive environmental policies limiting the extraction and mining of the metal have further constricted global supplies. Palladium's relative rarity makes it a valuable investment option when used to strategically diversify a Precious Metals portfolio.
Palladium is expected to be a profitable investment in 2023 due to a combination of macroeconomic and fundamental drivers.
Relatively hard: Palladium is considered to be a softer metal, but it is still much harder and more durable than gold, which lends more protection against impact and a greater resistance to denting. Compared to gold's knoop hardness of 200, Palladium has a knoop hardness of 400.
Palladium is expected to trade at 1375.32 USD/t oz. by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1236.23 in 12 months time.
Palladium is often purchased because of its widespread use in various industries. For instance, it's widely used in the dental industry for fillings and other items. It's also a popular option for jewelry.
In the past 12 months, platinum has lost 18%, but still outperformed palladium, which dropped 54%. Palladium was “badly hit” by an anemic auto sector, and demand hasn't recovered since the pandemic, says Nikos Kavalis, managing director at Metals Focus.
The rarity of palladium and platinum may ensure an upward trend in pricing in the future. However, since palladium is 15 times rarer than platinum, it is a higher-quality option despite the expected price decline in the coming years.
With the market's impressive supply and demand fundamentals, and growing prospects for a potential supply squeeze in the years ahead, an investment in palladium bullion may be one of the best bets now and in the future.
According to the latest long-term forecast, Palladium price will hit $1,500 by the middle of 2023 and then $2,000 by the end of 2024. Palladium will rise to $2,500 within the year of 2026, $3,000 in 2027, $3,500 in 2028, $4,000 in 2029 and $5,000 in 2031.
Palladium prices have spiked following the invasion of Ukraine by Russia, the metal's biggest exporter, yet stabilised further in 2022 as chip shortages and the push for electric vehicles (EVs) depressed automotive demand.
Palladium does have its negative side, though. It used to be far cheaper than platinum, but the rare metal is now more expensive than almost all other precious metals. Also, many jewelers choose not to work with palladium because of its brittleness when not properly handled.
Of the two metals, platinum is stronger than palladium, but again both metals are strong enough to be used for engagement rings or wedding rings that are worn daily.
Palladium Market to Reach Valuation of USD 24 Billion by 2030 – Growth in the Investment Prospects Drives the Market. In terms of revenue, the Global Palladium Market is expected to reach by 2030, growing at a CAGR (Compound Annual Growth Rate) of 5.5% from 2023 to 2030.
Is gold the best precious metal to invest in for 2023? The best-known of the precious metals, gold is considered by many to be an excellent asset to add to an investment portfolio. Gold is a key material for jewelry, and is also used as a store of wealth by investors around the world.
One of the most popular choices for wealth preservation in uncertain times for hundreds if not thousands of years is precious metals, with gold being the go-to option for many investors. However, silver and platinum are also gaining traction as viable safe haven investment alternatives.
Gold, silver, platinum, Palladium, and copper are great for starting your best investment in 2023.
In 2022, the global supply of palladium was forecast to be 7.12 million ounces. In 2021, the total supply of palladium amounted to seven million ounces worldwide.
Palladium should average $1,550 an ounce in the second and third quarters of this year and $1,513 in 2024, according to median forecasts returned by the poll of 33 analysts and traders conducted in April. A similar poll three months ago predicted palladium would average $1,828 an ounce in 2023 and $1,733 in 2024.
Consumer demand will be key to 2023 growth
“The health of the automotive sector will remain palladium's leading barometer — after all, the sector accounts for over 80 percent of demand,” Swarts said. Metals Focus sees auto production growth being marginally positive for palladium demand in 2023.
Buying Palladium Bullion Bars & Coins
Buying physical palladium is a unique investment opportunity; and the best way to get the lowest price per troy-ounce is to buy palladium bullion bars. These bars, produced by various refiners, are 10 troy ounces of pure . 9995 fine palladium.
Rhenium, ruthenium, rhodium, iridium, osmium, gold, palladium and silver are the order this comes in. The most valuable of all precious metals is rhodium.
That is now changing. Electric vehicles (EVs) that do not need palladium are gaining market share and automakers are substituting some palladium for cheaper platinum in combustion engine vehicles. Meanwhile, supply from recycled cars is rising as those containing more palladium reach the end of the road.
In 2021, China accounted for the largest consumption share of palladium worldwide, at 26 percent of global consumption. North America was the second largest consumer of palladium that year.
Investing in palladium is a great way to add to your portfolio's diversification. Adding palladium to your investment portfolio allows investors to diversify among precious metals and achieve the unique benefits of palladium.
Some investors may want to prioritize stability and long-term investing. In that case, gold is likely the better option. The precious metal has a longstanding history of reliable demand which often spikes during economic downturns. On the other hand, platinum usually performs better during times of economic growth.