Palladium vs Platinum – Which is the Best for an Investment?

Both palladium and platinum are members of the same white metal group. Gold and silver have always been popular precious metals to invest in, but these two are increasing in popularity both as an investment, and for making jewellery. To the untrained eye, both metals look virtually the same, however, they do have their differences. Platinum is much rarer, far denser and tends to be more expensive. Palladium, on the other hand, is more commonly used in industry because it is similar to platinum but much less expensive. The surface of both metals is non-porous. This means they are less likely to collect bacteria or react when in contact with human skin. These qualities make it hypo-allergenic and therefore excellent metals to use for wedding rings and other types of jewellery.

What is Platinum?

Records show that this metal has been used since the 16th century. Spanish conquistadors discovered mines of platinum in South and Central America. They gave it the Spanish name of platina, which roughly means “little silver”. It is resistant to corrosion, very durable and very appealing aesthetically. It is most commonly used in the automotive industry. Various types of electronic equipment also use it because of its qualities. Dentistry is another field that uses it because it is an excellent material for tooth repair. Currently, it is considered to be one of the rarest metals on earth. Its price is higher than silver, but not yet as high as gold.

What is Palladium?

Palladium wasn’t discovered until the 1800s. It’s colour is very similar to platinum, but slightly darker. Many of its properties are similar, but it is more abundant. Also used in the automotive industry, palladium is used in catalytic converters. It is often mixed with gold to create “white gold”. Palladium is more expensive than silver, but cheaper than platinum and gold.

Which is the Best Investment?

Both are great ways to diversify an investment portfolio. It looks likely that both will hold their value over time, because they are tangible, finite substances. The issue with both metals, however, is that their prices are very volatile. Supply is very unstable, making it an unpredictable investment. The fact that these metals are so rare, does increase the attractiveness of these precious metals. Compare them with gold, for example. If mining of gold was to stop today, there is enough gold to last for another twenty-five years. If platinum mining stopped at the same time, supplies would run out in less than a year.

If you’ve been thinking about investing in palladium or platinum, purchasing these metals is a simple process. Indigo Precious Metals has a full selection available.

Leave a Reply