Understanding Palladium’s Spot Price

Palladium prices have at times been higher than both platinum and even gold in terms of US dollar per troy ounce prices. 

Just like the gold spot price, platinum spot pricesilver spot price, palladium has a spot price too. This palladium spot price is the cost of one troy ounce of pure palladium at that particular moment typically measured in US dollars. Since this value of palladium spot prices fluctuates with time, it is an invaluable factor to consider when making palladium bullion investments.

However, the palladium spot price is very rarely the exact going rate of an ounce of palladium when you buy a palladium bullion product. Palladium bullion dealers usually charge a premium to the spot price to maintain operating profits. Not only does SD Bullion display the current spot price of palladium on the market, but we also clearly highlight our all in palladium bullion price and dealer premium to ensure transparency.

Why are investors buying Palladium Bullion products?

The following short video covers current supply demand investment factors for palladium.

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What Affects the Price of Palladium?

Like all other precious metals, palladium prices depend on a variety of factors.

In fact, unlike many popular precious metals that don’t see much industrial use, palladium is an essential cog in the huge wheel that is the automobile industry. It is widely used to reduce noxious fumes from vehicles that run on gasoline.

New industrial uses, higher industry demand, fluctuations in forex prices of countries that supply palladium, trade sanctions on palladium supplying counties, and newer commercial uses are just some of the factors that affect the prices of palladium.

Simply put, the metal’s demand and supply in the market play a key role in its price.

What is the long term Palladium Price History?

The all-time palladium record price happened near the end of the dot-com bubble, circa 2001.

Palladium's recent record high price surpassed the old palladium record price which reached $1,094.00 oz USD in late January 2001. On that same day palladium's US dollar per trpy ounce price was more than 4Xs the then gold price, almost 2Xs the platinum price, and over 250Xs the then silver price.

The following chart shows NYMEX palladium price history in US dollars per troy ounce of palladium from when the NYMEX began trading palladium futures contracts in 1977 up to today in 2018.

Palladium price history US dollars per oz SD Bullion SDBullion.com/palladium-price

[ Q2 2018 - updated quarterly ]

Frequently Asked Questions about Palladium Prices

Who sets the palladium spot price?

Palladium price discovery mostly occurs on the NYMEX (New York Mercantile Exchange).

In 1994 the NYMEX, which also mostly influences the platinum spot price, merged with COMEX (which mostly influences gold and silver price discoverycurrently). Both futures contract exchanges are now divisions within the CME group.

The palladium spot price mostly determined by the NYMEX is an indicator of the supply and demand of palladium in the market. The spot price changes constantly based on the price of short-term palladium futures contracts.

The following chart shows how much NYMEX palladium stockpiles have diminshed over the last 4.5 years.

Palladium NYMEX deliverable bullion reserves dwindling SD Bullion SDBullion.com/palladium-price

[ Q2 2018 - updated quarterly ]

What currency is used to provide the spot price of palladium?

The US Dollar is the international standard for prices of many precious metals, palladium included. Therefore, all palladium spot prices are in USD. The original USD value of palladium is converted into other currencies before they are traded on local exchanges.

Will buying palladium in another country be cheaper?

No. Even though palladium is traded on many global exchanges, palladium spot prices are constant across the globe – with negligible variations here and there. Hence, you will find the same palladium spot price everywhere, irrespective of country.

The following shows the Palladium price perfomance in various fiat currencies around the world since the start of this 21st Century Gold Rush.

Palladium Price History 21st century currencies SD Bullion SDBullion.com/palladium-price

[ 2018 Q2 - Updated Quarterly ]

Palladium vs FIAT CURRENCY KEY

Palladium vs USD = Palladium vs US dollars, Palladium vs dollar
Palladium vs ARS = Palladium vs Argentine pesos
Palladium vs AUD = Palladium vs Australian dollars
Palladium vs BRL = Palladium vs Brazilian real
Palladium vs CAD = Palladium vs Canadian dollars
Palladium vs CHF = Palladium vs Swiss francs
Palladium vs CNY = Palladium vs Chinese yuan, Palladium vs yuan, Palladium vs renminbi
Palladium vs EUR = Palladium vs euros
Palladium vs GBP = Palladium vs pound sterling, Palladium vs British pounds
Palladium vs IDR = Palladium vs Indonesian rupiah, Palladium vs rupiah
Palladium vs INR = Palladium vs Indian rupee, Palladium vs Rupee
Palladium vs KRW = Palladium vs South Korean won, Palladium vs won,
Palladium vs JPY = Palladium vs Japanese yen, Palladium vs yen,
Palladium vs MZN = Palladium vs Mozambican metical, Palladium vs metical
Palladium vs NZD = Palladium vs New Zealand dollars, Palladium vs NZ dollars
Palladium vs RUB = Palladium vs Russian ruble, Palladium vs rubles
Palladium vs TRY = Palladium vs Turkish lira, Palladium vs lira,
Palladium vs ZAR = Palladium vs South African rand, Palladium vs rand

Will a change in the Palladium spot price after placing an order affect my order total?

No. Once you place an order with SD Bullion, the palladium bullion product price is "locked in" – ensuring that you get the weight you ordered, at the price you ordered – irrespective of market fluctuations after the order and price lock-in.

What are “bid” and “ask” prices? Why are they different?

Put simply, the “bid” price is the price that a dealer uses when you want to sell palladium to the dealer. On the other hand, the “ask” price is the price the dealer uses when selling you palladium. The gap between these prices is called the bid-ask spread and is a great indicator of the liquidity of the precious metals market at any given time.

The larger the gap in the “bid” and “ask” prices, the less liquid the market is, and vice versa. Hence, the best time to liquidate your assets is when there is a very narrow bid-ask gap.

Why are prices per ounce higher than the spot price of palladium?

When it comes to a precious metals product, there are many other costs associated with it. These costs include secure shipping, safe storage, manufacturer costs, dealer premiums, and so on. Even dealers cannot buy palladium at the palladium spot price. To counter the additional costs and maintain profitability, they add a slight premium to the spot price.

Are taxes added to the current palladium prices?

Currently, there is not tax to be paid to SD Bullion when purchasing palladium.

How has the Palladium price performed versus Gold, Platinum, and Silver?

Palladium has been the best performing precious metal over the last few years.

The following chart illustrates how Palladium, Gold, Platinum, and Silver have performed in US dollars per troy ounce of each respective aforementioned precious metals (PM).

Palladium vs platinum vs gold vs silver SD Bullion SDBullion.com/palladium-price

[ Q2 2018 - updated quarterly ]

How has Palladium performed versus Gold?

In general since the start of 2016, palladium has outperformed gold in terms of US dollar price per ounce comparisons.

The following chart gives you a much longer understanding of the value relationship between these two precious metals including their percentage based US dollar per performance over the same timeframe.

Palladium Gold Prices Palladium vs Gold Ratio SD Bullion SDBullion.com/palladium-price

[ Q2 2018 - updated quarterly ]

How has Palladium performed versus Silver?

In general since the start of 2013, palladium has outperformed silver in terms of US dollar price per ounce comparisons.

The following chart gives you a much longer understanding of the value relationship between these two aforementioned precious metals including their percentage based US dollar per performance over the same timeframe.

Palladium Silver Prices Palladium vs Silver Ratio SD Bullion SDBullion.com/palladium-price

[ Q2 2018 - updated quarterly ]

How has Palladium performed versus Platinum?

In general since the start of 2009, palladium has outperformed platinum in terms of US dollar price per ounce comparisons.

The following chart gives you a much longer understanding of the value relationship between these two precious metals including their percentage based US dollar per performance over the same timeframe.

Palladium Platinum Prices Palladium vs Platinum Ratio SD Bullion SDBullion.com/palladium-price

[ Q2 2018 - updated quarterly ]

Is Palladium a good investment?

Although all investments come with their share of market risks, investors have learned to identify potential winners by minimizing risks. Let’s take a quick look at palladium.

Russia, South Africa, Canada, and the United States are the chief producers of palladium in the world. All relatively stable countries that should keep up a steady supply of palladium for many years to come.

Any commodity or precious metal that is driven purely by speculation should be seen as a high risk proposition. The higher the number of applications (industrial, commercial, investment, speculative) a precious metal has, the safer the investment it is considered to be.  

Palladium is widely used in the automobile industry – as a catalyst in gasoline-fueled car engines to reduce noxious fumes.

This metal is used to make jewelry, and is used in dental amalgam and photography as well.

Add to this the recent surge of palladium bullion products from mints all over the globe, most notably the Palladium Eagle Coin from the US Mint – and you have a precious metal that is a popular investment option and also has broad commercial and industrial demand.

This ensures that the demand for palladium is not purely fueled by investors and speculators; there is actual practical use for the metal, and is in substantial industrial and commercial demand outside the investor market, which gives it a solidity that many precious metals do not enjoy.

So yes, historically speaking, precious metals like palladium have seen a steady upward trend and it seems to have all the makings of a good investment asset.

Should Palladium Bullion be a part of my investment portfolio?

It can be prudent that all investments, whether investing the stock markets, precious metals, or any other asset, should be diversified. Although diversification might decrease your net returns, it acts as a solid shield against sudden market shocks.

Similarly, adding palladium to an investment portfolio ensures that you have another base covered and aren’t putting all your eggs in one hypothetical precious metal basket. Read more about bullion investment allocation studies here.

Diversifying your precious metals portfolio with metals like palladium is a sensible option because sudden market changes can be brought about by just about anything. A new technology, a new supply source, and so many other factors can bring down the price of any metal rapidly. Hence, it makes sense to distribute your wealth through various investment vehicles.

Palladium is also as good a hedge against inflation as the traditional precious metals investment avenues of gold and silver.  

Palladium should ideally be a part of any investment portfolio from this diversification standpoint. If you want to learn more about palladium bullion be sure to visit our palladium investment fundamental section here.

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