Palladium Scarcity Raises Price Forecast

Although there are a variety of methods for acquiring precious metals, safe and easy online services have sprung up to facilitate metals investing for small, retail, and amateur investors. One of the fastest growing and highest respected dealers, Independent Living Bullion, offers palladium in the form of a $50 Canadian coin known as the Palladium Maple Leaf. Independent Living Bullion offers free expert consultations on investing in precious earth metals like palladium.

As far as precious metals go, palladium has grabbed headlines this year. A new report out by the Wall Street Journal notes that some investors are taking up long positions in the resource due to limited supply that is expected to drive up prices.

This year, palladium, primarily used in automotive exhaust components known as catalytic converters, has only fallen 2%. Meanwhile, silver has dropped 27% and gold has fallen more than 15%. While its specialized industrial use may make palladium seem an impractical investment, it’s important to consider that 80% of palladium is used for industrial purposes. Furthermore, 80% of the world’s palladium is produced by two nations, South Africa and Russia. So the sources of supply for palladium are not diverse and, at the same time, production is declining. One can expect palladium to perform well as an investment in the coming years.

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Analysts Lift Prospects on Platinum and Palladium

Recent global developments have caused commodities experts to raise their price expectations for platinum and palladium, two relatively new options in earth-metals investing.

Used in the automotive manufacturing process and the electronics industry, platinum and palladium demand is increasing due to recent growth in both of these sectors. Added to this are supply issues with the rare metals, which results in a textbook price jump from increased demand and scarcity. The supply problems stem from South Africa, where almost 75 percent of the world’s platinum is produced. Resistance from labor unions plus rising costs has combined to slow production, with palladium production facing similar problems.

Together, these supply and demand conditions have resulted in a price jump for both metals, with platinum jumping to $1,520 per ounce and palladium making a step up to $724. Investors looking to shore up their portfolio with either palladium or platinum should contact Independent Living Bullion for a free consultation at 1-800-800-1865. Independent Living Bullion is a trusted online retailer of platinum and palladium coins, as well as other precious metals.