- How is Palladium price per ounce determined?
The price of palladium per ounce is determined by several factors. The major usage of palladium is the auto industry for catalytic converters. Thus, the health of the auto industry and the demand helps determines the palladium price. Apart 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 all around the world at which palladium per ounce can be bought or sold at a 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 assist you deciding whether you want to invest in the metal or not. 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 price per ounce. Some of the preferred investments which offer great palladium value are palladium coins and PAMP Suisse Palladium Bars.
- Palladium as an Investment
Palladium is a sister metal of platinum and is often found along together with the platinum group of metals, also recognized as PGM.
- 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.
- Palladium is softer than platinum while still 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.
- Because it is cheaper and more soft, yet ductile and resistant to rust, it is also used in the medical field by dentists.
- Palladium is also used widely in electronic industry.
- Palladium can be bought as coins and bars or as ETFs. Hence, there is flexibility in investing options.
Because of all the above uses, the value of palladium is increasing day by day, and there is a boom in the palladium market right now.
Palladium Spot Price FAQs
- Is the Palladium price per ounce the same no matter where I live?
The palladium price per ounce is same throughout the world. This is done to prevent any kind of arbitrage. The palladium stock price in USA will be the same as it is in the other countries like UK, Australia, France, India, and China. The spot price will be in USD, and dealers and investors can convert it to their own currencies to know the cost of palladium.
What are Bid and Ask prices?
The Bid price is the best potential price that a dealer is willing to buy per ounce of precious metal at. The Ask price is the best potential price that a seller is willing to sell per ounce of precious metal at. The dealer will buy the commodity from you at the Bid price and sell the commodity to you at the Ask price, the Ask price being always higher than the Bid price. The difference between these two values is known as the spread.
Why can't I buy at the Palladium 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 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 coins design, rarity, and limited mintage. Although the palladium stock price 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 and they go for the best bargain.
What is the difference between an ounce and a troy ounce when looking at the Palladium price chart?
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 palladium prices and all other precious metals keeps changing quite often due to numerous factors including, but not limited to the following:
- Current events;
- Supply disruption;
- Industrial demand;
- Market speculation;
- Buying power, and more.
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.