Precious Metals Investing – Platinum and Palladium Market Potential

Precious Metals Investing

With gold and silver precious metals prices reaching their historical highs in the recent years, investors have been in the gold and silver buying craze to provide themselves with a safe haven against compounding state budget debts. But what about other precious metals investing such as palladium and platinum bullion? What does the future hold for other precious metals investing?

Unlike gold and silver, the prices of platinum have not been rising so drastically, so investors were not as interested with buying platinum coins or bars. Moreover, the prices of gold have outperformed the prices of platinum which in itself is a rather rare occurrence and happens only once in every 15 years. However, with gold and silver coins trading at insanely high prices, right now it might not be the right time to buy gold and silver but may just be the perfect opportunity to get into the platinum precious metals investing.

There are so many advantages as to investing in platinum because it is a very rare precious metal that has a lot more industrial uses beyond jewelry and electronics. Platinum content is essential for manufacturing automotive parts, neurosurgical and dental equipment. The demand for platinum by far exceeds its annual supply which is a very tricky metal to mine. According to platinum mining data, platinum mining constitutes only 5% of the total mined gold. With that said, platinum precious metal investing is a very smart choice in the long run. Since more and more platinum is needed, more efforts are going to be put in discovering more cost effective ways of obtaining this metal. As a possibility, look into platinum precious metals ETF and platinum stocks. Bottom line, by all means we are not urging you to put all of your money into platinum, however, buying several ounces in platinum bars and platinum coins, and some platinum shares is a good investment decision.

Today investors considering platinum precious metals investing can choose from a wide variety of bullion coins made of platinum, bars and also several other platinum mechanisms as platinum certificates, ETF’s and shares.

What about palladium? Should investors even consider palladium precious metals investing?

It helps to know that palladium is a precious metal that comes from the platinum group. During the mining process, platinum and palladium are very often found together. Similar to platinum, palladium has advanced industrial applications, especially for automotive catalysts working on reducing hazardous car exhausts. With a global emphasis on lowering fossil fuels dependency and going “green”, both palladium and platinum demands are currently the highest in the history. This trend has a huge potential to keep growing taking platinum and palladium prices on an upward curve.

With prices per ounce of palladium trading almost three times lower that that of gold (September, 2011 data), it’s one of the best timeframes to get into palladium precious metals investing. In January of 2011, palladium’s price per ounce was registered at about $1,000 dollar mark. As you can see, as of October 4, 2011 one ounce of palladium was trading at $570.00 which is almost twice as low as its historical high presenting a fantastic opportunity to acquire some palladium bullion coins and bars. When it comes to palladium precious metals investing, you can choose from very popular palladium coins, namely, Canadian Palladium Maple Leaf and Chinese Palladium Panda.

According to various financial market analysts explaining why the prices of platinum and palladium did not follow the suit of their gold and silver counterparts, the prices of platinum and palladium are very much driven by industrial uses. With potential economy slowdown in sight, many fear that the prices of platinum and palladium will not grow exponentially and might even drop. However, higher than ever demands for these metals coupled with difficult mining methods compared to those of gold and silver will undoubtedly result in their price appreciation in the long run.