PALLADIUM'S GLITTERING FUTURE

American Eagle Palladium Bullion Coins Have Appreciated Nicely

- STEVE VOYNICK

Palladium has hung around as platinum’s “little brother” for a long time. Although it shares the same silvery-white color, it has never enjoyed platinum’s glamour, name recognition, and value. But now it appears that the “little brother” has suddenly grown up.

The four major precious investment metals—gold, silver, platinum, and palladium—have all performed well over the past five years. Silver has doubled in value, while the prices of gold and platinum have nearly doubled. But the standout has been palladium. In February 2016, palladium sold for $500 per troy ounce. Today, in April 2021, it’s selling for about $3,000 per troy ounce—a five-fold increase in just five years. And those who acquired American Eagle Palladium bullion coins when they were introduced in 2017 by the U.S. Mint doubtlessly wish they had bought more.

A long-term shortfall combined with steadily increasing demand has pushed palladium’s price to twice that of platinum, leading some metal-market analysts to predict a price of $3,000 per troy ounce by the end of 2021. But before looking to the future, let’s look at the metal itself.

PALLADIUM’S COMPOSITION

Palladium, chemical symbol Pd, is a rare, silvery-white, transition metal. With a specific gravity of 12.02, it is as dense as lead but only half as dense as platinum. Harder than both gold and platinum, it takes a superb polish. Although not quite as inert as gold, palladium nevertheless does not oxidize under normal conditions and, like platinum, retains its gleaming metallic luster indefinitely.