FAQs
How is the palladium price per ounce determined?
The price of palladium per ounce is determined by several factors. Palladium is most commonly used in the automobile industry as a key part in catalytic converters. As such, the health of the auto industry and its demand for this metal helps determines the palladium price. There is also a significant demand for palladium in the medical and electronic industries, both of which can also affect the metal’s price per ounce. The major suppliers of palladium are Russia and South Africa: if there is any political instability, natural disaster, or economic turmoil in these countries, then the palladium price per ounce might rise or fall accordingly.
What is the palladium spot price?
The spot price of palladium refers to the current price per ounce of raw palladium worldwide. The spot price of palladium can fluctuate depending on supply and demand, as well as other factors such as the health of the stock market.
Why should I care about the palladium spot price?
Keeping up with recent details about the palladium spot price will help you make the most informed decision possible about when to invest. Since palladium is rarer than platinum and its biggest source of demand is the automobile industry, any fluctuation in supply and demand there can significantly alter its price per ounce. Bullion Exchange alerts are useful for navigating the price of palladium per ounce in this often volatile and unpredictable market. Now you don’t have to worry about the best time to buy palladium coins and palladium bars.
Why should I invest in palladium?
Palladium is a sister metal of platinum and is often grouped together with the platinum group of metals, also recognized as PGM.
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Palladium is cheaper than platinum. Since there is an increasing demand for platinum and palladium in the auto industry, this makes palladium a very appealing choice for investors.
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Palladium is softer than platinum, while simultaneously being ductile and resistant to rust. It is therefore very favorable for making jewelry. Palladium is usually used in making white gold. The jewelry industry consumes as much as 19% of the world’s palladium production.
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Palladium is also in demand in the medical field, mostly for dentistry equipment.
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The electronics industry also drives significant demand for palladium.
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Palladium can be bought in the form of coins and bars. Hence, there is flexibility in investment options.
Are palladium prices the same no matter where I live?
The palladium price per ounce is the same throughout the world. It is a constantly moving, yet globally fixed, price to prevent any kind of arbitrage. The price of palladium in the United States is therefore the same as in any other country, like the United Kingdom, Australia, France, India, and China. The spot price is in U.S. Dollars.
What are bid and ask prices?
The bid price is the current maximum price at which you can sell your palladium. The ask price is the current minimum price at which you can buy palladium.
The difference between the bid and the ask price is the bid-ask spread. If you plan on selling your palladium to a dealer, they will buy it from you at the bid price. Conversely, if you plan on purchasing palladium, they will sell it to you at the Ask price. The spread will be the dealer’s profit. The ask price will always be higher than the bid price.
Why can’t I buy palladium at the spot price?
You cannot usually buy palladium at the spot price because most dealers add a small additional fee to it on every purchase. This additional fee is called the premium. The premium is the total cost for palladium coins or bars, and includes both the metal’s raw value as well as several other factors needed for sale. These include costs for manufacturing, distribution, marketing, and the supply and demand of the palladium product. Coin premiums are also based on each coin’s design, rarity, and limited mintage, which can all raise the price above spot. Although the spot price of palladium will be the same throughout the world, the premium can vary from dealer to dealer. Rest easy knowing that Bullion Exchanges always offers the lowest premium possible for all of our palladium products.
Additionally, we may occasionally run deals at our discretion for buying palladium at spot price. Subscribe to our newsletter to stay updated on these special offers.
What is the difference between an ounce and a troy ounce when looking at a palladium spot price chart?
The troy ounce is the standardized global weight system for all precious metals. The U.S. Mint adopted it in 1828 to have a standard unit of measurement. The troy ounce has its origin in the Troyes town of France, which was a bustling trade market in its day. The troy ounce is 2.75 grams greater than the regular ounce. The regular Avoirdupois ounce contains 28.349 grams, whereas a troy ounce contains 31.103 grams. Although the difference isn’t high, it becomes important when buying or selling precious metals in bulk.
Why does the price of palladium change so often?
The price of palladium, as well as other precious metals, changes often due to numerous natural and manmade factors. These include, but are not limited to, the following:
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Current political events
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Supply disruption
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Industrial demand
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Market speculation
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Buying power
If you have decided to purchase palladium to diversify your investment profile but have questions, please do not hesitate to contact us at 800.852.6884 or by sending us a message to customerservice@bullionexchanges.com.
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