Palladium is one of the more volatile precious metals that you can invest in, but there are signs in the market that the palladium price per ounce may be set to spike upwards in the near future.
Upwards of 80 percent of the world’s supply of palladium comes from two places: Russia and South Africa. Back before palladium saw a rise in demand, Russia stockpiled quite a bit of the precious metal. Now, palladium has seen a rise in demand, particularly in the automotive industry. In fact, automobile producers total half of the world’s palladium consumption. Other manufacturers contributing to the rising palladium price produce items like cell phones, LCD TVs, laptops, and DVD players.
While all of these may seem like good news for Russia, and a sign that they will continue to make good money off of their stockpile, the facts are somewhat different. According to recent reports, Russia’s stockpile has shrunk to levels well below what is needed to keep up with world consumption. What does that mean for palladium price, especially considering that Russia’s stockpile contributed 10 percent of the world’s consumption of the precious metal last year?
If this information is true, it will mark a rather large decline in the availability of palladium, which means that the palladium price will skyrocket. Of course, there is no way of knowing for certain. You see, the amount of palladium currently in stockpile is a Russian state secret.
If the stocks do dry up, with nowhere to find more palladium in such high amounts, some analysts predict that the price of palladium could push higher than $1000 per ounce. This is an opportunity for investors, and one that should not be missed. While most investors have been leaping at the chance to add gold and silver and platinum to their portfolios, palladium has not been the obvious choice…until now. In fact, at this point, the palladium price and the predicted increase in value for the short-term makes palladium the best choice for your money in precious metals.
If you are considering making the switch to invest in palladium, or if you simply want to investigate palladium as a potential addition to your portfolio, the best thing you can do is to consult with a financial advisor, particularly one who has experience in precious metals. When you’ve added precious metals like palladium to your portfolio, you can rest assured that your future and your family will be secure for years to come.