FAQs
How is the palladium price per ounce determined?
The price of palladium per ounce is determined by several factors. The major usage of palladium is in the automobile industry for catalytic converters. Thus, the health of the auto industry and the demand for this metal helps determines the palladium price. Aside from this, there is a significant demand for palladium in medical and electronic industries which also determines the price per ounce to a certain extent. The major suppliers of palladium are Russia and South Africa: if there is any political instability, natural disaster, or economic turmoil, this too can cause a rise or dip in the palladium price per ounce.
What is the palladium spot price?
The current price of palladium anywhere in the world at which an ounce of palladium can be bought or sold at any particular time is called the palladium spot price. The spot price of palladium can fluctuate depending on the supply and demand as well as other factors.
Why should I care about the palladium spot price?
Knowing all the recent details about the palladium spot price will help you make the most informed decision when you plan to invest in this precious metal. Since palladium is rarer than platinum in occurrence and its major demand is from the automobile industry, any fluctuation in supply and demand can alter its price per ounce. Bullion Exchange alerts are useful for those interested in receiving updates on both dips and rises in the price of palladium per ounce. Some preferred investments which offer great palladium value are 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 with a large share of it allocated to the automobile industry for the purpose of catalytic converters. Since there is an increasing demand for platinum and palladium in the auto industry, palladium is a very appealing choice for investors.
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Palladium is softer than platinum while simultaneously being ductile and resistant to rust. Thus, it is 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 used in the medical field by dentists.
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Palladium is also used widely in electronic industry.
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Palladium can be bought in the form of coins and bars. Hence, there is flexibility in investing 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 fixed price to prevent any kind of arbitrage. The price of palladium in the United States will be the same as it is in any other countries 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 and Ask are the two prices that are constantly used to describe the price of palladium. The Bid 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, Bullion Exchanges will buy it from you at the Bid price, and if you plan on purchasing palladium, we 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 buy palladium at its spot price because there is a small additional fee added to it. This additional fee is called the premium. The premium is actually the total cost you will be paying for palladium coins or bars that you will be buying. The intrinsic value of the metal greatly influences the value of a palladium coin. Several factors are involved in determining the premium: manufacturing, distribution, marketing costs, and supply and demand of the palladium product. Coin premiums are also derivative of the coin’s design, rarity, and limited mintage. Although the spot price of palladium will be the same throughout the world, the premium can vary from dealer to dealer. The premium is what investors check when purchasing precious metals from dealers. Bullion Exchanges is always offering you the best prices for all of our palladium products and we aggressively compete with other dealers.
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 weight system for all precious metals used all over the world. They were adopted by the U.S. Mint in 1828 to have a standard unit of measurement. The troy ounce has its origin from the Troyes town of France, which was a trade market. The troy ounce is 2.75 grams more than the regular ounce. The regular Avoirdupois ounce contains 28.349 grams whereas a Troy ounce contains 31.103 grams. Although the difference is not much, this becomes evident when you are selling or buying precious metals in bulk.
Why does the price of palladium change so often?
The price of palladium, as well as those of other precious metals, keeps changing quite often due to numerous factors including, but not limited to the following:
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Current 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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