During times of economic uncertainty, many intelligent investors decide to hedge their portfolios against the potential occurrence of currency devaluation and inflation by committing to precious metals investing. They often choose to invest in precious metals such as gold, silver and platinum. One precious metal, however, that is often overlooked by investors looking to get involved in the precious metal marketplace is palladium.
Buying palladium is a great way to invest your money in a reliable precious metal, and in 2013, palladium has proven its worth and auspices after outperforming gold, silver, and platinum.
Palladium is an essential component of automobile production, and with a growing middle-class in many countries, the demand for cars is higher than ever before. The growths of palladium in 2013 came as no surprise to many due to its constant demand, but this impressive performance is leading many to wonder what this metal will do in 2014 and beyond.
Despite all of its fluctuations over the year, palladium recorded a 5.8 percent return rate this past year. This growth is due in large part to the increasing prevalence of this metal in many countries such as China and India, including the social and environmental changes that are prompting these countries to buy more of this pragmatic metal.
Although 2013 was a rough journey for many precious metals holders, it is important to keep the big picture in mind. Yes, the U.S. Economy has stabilized a bit, which has decreased the demand for precious metals as a hedge. However, precious metals tend to take well over a year to truly appreciate in value. Most people approach precious metals with the plan of holding them long-term and waiting until prices have peaked to sell. In fact, many precious metals holders don’t sell at all because they know that their savings are going to be safer being stored in gold, silver, and more recently platinum or palladium.
When you think of the precious metals market, what options come to mind first? If you’re like most people, gold and silver are the first (and possibly only) metals you think of, but there are more. Platinum is another option, but so is palladium. Few investors know or appreciate the benefits that palladium offers. This close kin of platinum is just as high in demand as the more expensive metal, and buying palladium is a very wise decision for those hoping to bolster their portfolios. Here’s what you should know about the metal.