Platinum vs. Palladium: Where Should You Invest?

It is said that the best time to invest is today. If you are looking for investment options, you may want to consider buying precious metals. Through this investment scheme, the actual product will be delivered right at your door. This product may come in the form of coins or bars. You will get to hold your investment instead of just seeing a reflection of your money on the screen. Two of the rarest metals being actively traded in the market are platinum and palladium. Here are some basic things you need to know about them so you can decide whether to invest or not:

Platinum

Platinum was first discovered by Mayans thousands of years ago in their art. However, it was only in the 1780s when extensive research was done to determine its use. Through countless scientific experiments, it turns out that this precious metal is characterized by low reactivity. As such, it is highly resistant to corrosion, which makes it suitable for fine jewelry. Additionally, it is also stable even when exposed to a high temperature, that is why many industries use it. For instance, platinum is a common material for dental works, laboratory instruments, and fine resistance wires. When mixed with other substances like cobalt, it can create strong magnets.

Palladium

Palladium is technically considered part of the same metallic group as platinum, but it differs in its durability and malleability properties. Like its counterpart, it features a lustrous white look, and it will remain white forever. However, palladium can easily acquire scratches, unlike platinum. Nonetheless, many jewelers make use of palladium because it is more malleable. Jewels made of palladium are also expected to last longer than gold. This precious metal is also commonly used as an important part of the car’s exhaust system. It can prevent the vehicle from emitting dangerous gases into the environment by converting them into vapours.

How they fare as investment options

At present, platinum is highly valued for its rarity. An ounce of it can easily cost $1,400 in the online market. While it is even more difficult to find than gold, it is almost 30% cheaper. As such, you can easily invest in it even if you are on a budget. As a word of caution, you need to manage your risk appetite when investing in platinum. The price of this metal can be volatile, especially during uncertain economic times, so you have to learn to manage your investment.

Just like its counterpart, the value of palladium is high because it is hard to find. The supply is a bit tight because only two countries produce it. Understandably, it has one of the highest prices among precious metals. Its increasing usage in today’s market and its low availability makes palladium very valuable. Its current value is $3,500 per ounce, and it is expected to increase even more in the next few years. Unlike platinum, this precious metal is more stable in terms of its growth, so you need not worry about experiencing a significant drop in its prices.

Both of these precious metals are good investment options. If you do not have huge money to spare, then you can opt for platinum. However, if your budget permits, it is best to invest in palladium since it has a better fundamental outlook. Without a doubt, you will not be regretting your decision to invest today.

Alison Lurie is a copywriter and content strategist. She helps businesses stop playing around with content marketing and start seeing the tangible ROI. She loves writing as much as she loves the cake.

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