Platinum and Palladium: Precious Metals for Investing

Of the nine different chemical elements that are known to be “precious metals,” palladium and platinum, in particular, are used in multiple industrial applications. Though they are quite rare and very expensive, they make excellent investment opportunities in the commodities markets.

Palladium:

Palladium, especially, has a very high value, at approximately $415 USD per troy ounce. While this is a substantial decrease over the last ten years (the price was more than $1000 USD for the same amount in 2001), it continues to be an excellent investment. In the early part of the 2000s, the auto industry used large amounts of palladium to manufacture catalytic converters. While that industry has somewhat slowed, there are many other uses for palladium.

Palladium can be purchased in coins or bullion bars for investment purposes. The coins minted from palladium bullion are used as international currency and have been used since 1966, when they were first issued in Sierra Leone. Tonga, Canada, Australia, Russia, Portugal, France, and China all have their forms of palladium coins as well. In fact, the former Soviet Union has minted the highest number of palladium bullion coins worldwide.

While multiple countries have minted palladium coins, they are not well circulated. And, despite the excellent investment opportunities offered by palladium as a commodity, it is still of far less value than either silver or gold. The place to invest in palladium as an exchange traded fund is on the London Stock Exchange, using the symbol LSE:PHPD.

Platinum:

Platinum is known to be less abundant than either silver or gold and will usually trade at a higher per-unit price because of this. While gold is mined at a rate of 77 million troy ounces each year and silver hits a rate of nearly 550 million troy ounces per year, platinum only reaches a rate of approximately 5 million troy ounces yearly. This results in the higher trading rate. In January 2010, estimated values of platinum were just over $1500 USD per troy ounce. This is down nearly 50% over the past few years.

Like palladium, platinum is traded as a commodity on the London Stock Exchange, but also can be traded on the New York Mercantile Exchange. Platinum ingots and platinum coins can be purchased for investment purposes also. Platinum coins are recognized as currency on an international level, but there are few varieties found as platinum is not one of the easier metals to mint coins from.

Platinum coins that have been minted for currency include the Manx Noble (1983-1989), the Maple Leaf (Canada, 1988-1989), the Koala (Australia, 1988-today), the Libertad (Mexico, 1989), the Eagle (United States, 1997-today), the Panda (China, 1988-1990, 1993-1997, and 2002-2005).

In Switzerland, platinum accounts can be opened. As with other precious metals, platinum is considered to be similar to other types of foreign currency and can be bought, sold and traded right at the counter. While gold and silver can remain in the actual possession of the owner or investor, the physical platinum coins, ingots or bars must remain stored while the owner retains the monetary value in an account.

If you are looking to buy and sell coins, be sure to find a reputable dealer.

Source by Mark Heppard

Platinum and Palladium: Precious Metals for Investing