TMCnet Feature
February 17, 2021

Should I Invest in Palladium Coins or Bars?

Historically, palladium has been of lesser value than most precious metals. However, newfound interest in the metal, particularly within the automotive industry, has caused a sharp uptick in its prices.

Just last year, palladium prices soared far beyond the price of gold. An ounce of palladium now costs between $2,000 and $2,500, while a decade ago, investors could expect to pay around $300 for an ounce of the precious metal. An ounce of gold currently costs between $1,500 and $2,000.

Palladium is incredibly scarce, which contributes to its high prices. The metal is 15 times rarer than platinum and 30 times as rare as gold. Because of the meteoric price rise, palladium is gaining attention from investors that buy palladium online

Palladium is a recent infatuation, and many investors find themselves wondering whether palladium coins or bars are the better options. The answer lies in the type of investment being made, along with personal preference. In either case, palladium looks poised to remain a worthy investment for years to come.

Palladium Coins

Palladium coins are relatively new. Palladium itself was only discovered in 1803.

Although countries like Canada and Australia have been minting palladium coins for several years, the United States only started in 2017 with the American Palladium Eagle coin. In some cases, palladium coins are issued as collector items.

Palladium coins are government-issued and have a face value that allows them to be used as legal tender. The face value of a coin is different from the intrinsic value of the coin itself. Face value refers to the coin's worth when used in a financial transaction. As precious metals' spot prices continually change, coins are often worth more than their face value.

For example, the Canadian Palladium Maple Leaf coin has a face value of $50, but its current intrinsic value is more than $2,000. The Palladium Maple Leaf is one of the most highly traded palladium coins and the Palladium American Eagle, and the Palladium Russian Ballerina.

Palladium Bars

More often than not, palladium bars are issued by private mints; The Royal Canadian Mint is one exception. Unlike coins, palladium bars do not have a face value, meaning their worth is solely tied to the metal's spot price. They cannot be used as legal tender.

Palladium bars are meant to be bought and sold in bulk. They cannot be used in financial transactions and are meant to be traded based on the metal content's value.

Palladium bars often come stamped with the mint's name and the bar's metal content. Some mints forge logos onto the bars to differentiate them from competitor bullion.

The primary way to make an earning through palladium bars is through premiums. Investors who purchase palladium bars impose premiums on top of the metal's spot price and then sell the bars for cash.

What's the Difference?

When investing in palladium coins or bars, the interest lies solely in the metal content. Bullion is fashioned into either coins or bars to provide a convenient distribution method and more clear denominations.

Whether you purchase coins or bars, in both cases, you own the physical metal. The main difference between the two is the selling point. Palladium coins tend to sell at a higher price point because they are easily recognizable and easier to trade.

Which One Should I Purchase?

Both palladium bars and coins are worthy investments. In general, coins have higher liquidity and are easier to trade, but large bullion bars tend to have lower premiums. Institutional buyers or investors purchasing large quantities of palladium should opt for bars to take advantage of lower premiums, while coins are better suited to the average investor.

One important note is that palladium has yet to reach the popularity of gold or silver, so coins may be more difficult to sell. Regardless, purchasing palladium coins or bars is a great way to diversify an investment portfolio. Demand for palladium is ever-increasing, so investments should hold steady for several years.?

» More TMCnet Feature Articles


» More TMCnet Feature Articles