The silvery-white precious metal called palladium has a price that is affected by dozens of factors, whether we are talking about the price decades ago or the price today: economic stability, how many people are buying vehicles, and even the demand for palladium in wedding rings can affect the price.
Like any publicly traded company stock price or commodity, the price of palladium rises and falls, and the challenge for investors is to determine when those prices peak. This article will take a closer look at the historical value of palladium and the factors you need to consider to determine the value of your palladium investment today.
What Has Palladium Been Worth?
The least-known of the four major precious metals (gold, silver, platinum and palladium), palladium’s value is the most recent to be truly understood. Going back to the early 1990s, palladium was trading at a low of around $93 CDN per troy ounce.
Within just a handful of years, there was a commodities boom and the price of palladium skyrocketed to a record-setting price almost reaching $1,500 CDN. This was mostly caused by Russian supply problems creating a huge need for palladium. Even the Ford Motor Company became caught up in the frantic energy and ended up stockpiling massive amounts of palladium for their catalytic converters.
Unfortunately for investors who bought when the price was high (like Ford) when the supply problems were resolved, the price dramatically dropped to almost $200 CDN, resulting in huge losses, including a $1-billion loss for Ford.
Since the early 2000s, the price had gradually increased until around the summer of 2018, when supply issues once again concerned investors, leading to a rally that rose the price to almost $3,400 CDN.
From 2018 to today, the demand for palladium continues (especially in vehicle production) and its price has fluctuated around the $2,500 to $3,500 mark for years. With palladium’s importance in our lives, Royal Bull does not foresee a sharp decline and advises Canadian investors to pick up some palladium now, while they can.
What is My Palladium Worth Today?
Determining the current price of palladium is not as easy as just looking at a spot price chart; to get an accurate appraisal of your palladium bar or palladium coin you need to consider many other factors.
Palladium is a commodity and so it is traded throughout the day in exchanges with prices that fluctuate throughout the day. This trading activity makes a fully accurate valuation impossible without knowing more about the precious metal.
To receive your spot price valuation of your palladium bars and/or coins, check the frequently updated Royal Bull’s Precious Metals Prices Chart right now. Just keep in mind that the prices in the chart are based only on weight and not the many other aspects of palladium.
Here are some of the many other factors that could affect the price of your palladium.
Palladium’s Value Depends on The Demand for the Precious Metal
Palladium is frequently used for investments, manufacturing catalytic converters in vehicles and also in jewellery. The need for palladium in these areas can influence the value of your palladium. For example, the need for more vehicles might increase the price of palladium.
Palladium Bars and Coins can Have a Valuation That Involves Psychological Connections to the Products
A well-loved gift of palladium from a family member will likely have more value to the holder of the precious metal than if an equally weighted palladium product was purchased directly from a store. Palladium is a beautiful metal that lasts forever, so it can certainly have sentimental value to whoever wants to buy or sell it. Just like your 1990s baseball card collection, the sentimental value attached to your palladium coin or palladium bar may inflate its value.
Palladium Bars and Coins can Have Designs That Influence Their Value
Palladium coins and bars with only a logo and the metal content might have a relatively low value – something closer to spot price – while a palladium product with a beautiful design may have a higher per-ounce value as it can be something that is more likely to be loved by its beholders. This is not always the case, but it is something to keep in mind.
The Price of Palladium Bars and Coins Depends on Where They Were Minted
A one-ounce palladium coin made by a renowned mint based in Switzerland may have more value than a new mint based in Asia. Understanding where precious metal products are made, and the mints’ histories are important to determine an accurate valuation of your palladium.
History is an Important Consideration to Determine Tour Palladium Product’s Value
Selling a palladium bar from the 1800s will net you significantly more money than selling a palladium bar made a few weeks ago in Canada. (Sorry, Canada.) There’s the historical value, the rarity of the product and also the bragging rights – these all factor into the price. In what time period was the palladium product minted? Has it been used by royalty? In what capacity was used? Understanding palladium coin/bar history is an important piece of its valuation.
The Person Buying or Selling Palladium can Affect its Value
Just like anything in life, physical items can have emotional attachments. Palladium is no exception. You may see more value in your palladium because it was passed down from your grandfather many years ago, while the person you want to sell it to does not see any of the emotional connection to the bars or coins. Consider that others might have emotional or psychological attachments to precious metals and do your research in finding buyers/sellers who fully understand their most accurate value.
Scarcity is a Huge Factor in Determining the Value of Palladium
Sources for palladium are rare – only a few places on Earth have been found with significant deposits, including South Africa and Russia. With the current turmoil with Russia, who knows what the future has in store for providing manufacturers with consistent supplies. When products are scarce, the value often rises; when the products are plentiful, the value often drops.
Many Factors Affect the Price of Palladium in Canada
Determining the full, true value of your stunning palladium products requires an analysis of all of the factors above and then some. It’s likely worth more than just its weight, so reach out to Canadian palladium experts to determine a fair price for your palladium before you sell. Start by contacting Royal Bull right now.
