How Rare Is Palladium?

Palladium is one of the rarer metals found in the earth’s crust. Palladium, along with five other metals (including platinum), forms the platinum metals group on the periodic table of elements. This strikingly shiny white metal is hard to find in its isolated form but can be extracted from the byproducts of nickel, copper, and zinc refinement. Palladium is thought to exist in quantities ten times lower than gold and 100 times lower than silver. This extreme rarity makes palladium a very precious and valuable metal. However, in spite of its rarity, Palladium does not cost ten times more than gold or 100 times more than silver. This incongruence in price is due to the more limited industrial applications of the metal and the existence of other lower-cost substitutes.

What Is Palladium?

Palladium is one of several precious metals. Just like gold and silver, palladium is sought after by precious metals collectors because of its unique properties and ability to act as a store of value. Palladium is even traded on the exchange in much the same way that gold and silver are. The main market for palladium is found in industrial manufacturing because of the different properties the metal possesses. 

What Is Palladium Used For?

Palladium is used mainly in catalytic converters. These catalytic converters are placed on cars to reduce the amount of carbon monoxide that is allowed to escape into the environment. Palladium traps carbon monoxide and allows other oxygen atoms to attach to the molecule creating carbon dioxide, which is comparatively safer for humans and the environment. Palladium can also be substituted for platinum and rhodium when the supplies of the metal are short. 

Apart from the automotive industry, palladium can also be used in dentistry by taking the place of other noble metals such as silver, gold, and platinum. Other companies use palladium in ceramic boards as electrodes which are then used in computers and microchips. Finally, palladium is often used in fine and rare jewelry and bullion. The metal is incredibly shiny and attractive to the eye, making a perfect metal to set a diamond in. Many people also choose to own palladium because of how valuable it is and its association with other precious metals like silver and gold. 

How Scarce Is Palladium?

Because palladium is so scarce, there’s a big recycling market that takes used palladium from old catalytic converters, extracts it, and re-uses it in new ones. The USA currently mines approximately 14000 Kg of palladium each year but consumes 90,000 Kg in manufacturing. The rest of the palladium comes from Russia and South Africa. The recent conflict between Ukraine and Russian has caused most of the Russian palladium to become inaccessible to the world’s market. As a result, many people believe that palladium will increase in value in the near future since automotive demand is only increasing. Many individuals have also decided to add palladium bullion to their own portfolios as a hedge against inflation. Others believe that the metal may see high rates of returns in the coming years with rising inflation and the removal of Russian palladium from the international markets. 

Conclusion

Palladium is likely to continue being a valuable metal in the near future. Electric vehicles are making a small dent in the market since they don’t need catalytic converters. However, the widespread usage of EVs is unlikely to affect the market in any substantial way in the short to medium term. Nationwide Coins specializes in helping individuals safeguard their money with precious metals ownership. To learn more about palladium, along with silver and gold, please contact the experts at Nationwide Coins. You can contact us via our website or call us at 1-855-609-1255 to speak with a knowledgeable representative today.