Palladium

The primary ways to invest in palladium include buying physical palladium bars (1 oz bars from PAMP Suisse or Valcambi are most common), American Palladium Eagle coins, palladium ETFs (such as PALL), and shares of PGM mining companies like Sibanye-Stillwater or Impala Platinum. Physical palladium carries higher premiums than gold or silver due to limited retail supply. For most investors, a combination of physical coins and ETF exposure provides the best balance.

Approximately 80% of palladium demand comes from automotive catalytic converters, where it is used to convert harmful exhaust emissions into less harmful substances — primarily in gasoline-powered vehicles. Other uses include electronics, dentistry, hydrogen purification, and chemical processing. Palladium is also being explored for use in hydrogen fuel cell technology, though platinum currently dominates that application.

Neither is inherently "better" — they serve different roles. Palladium has historically been more volatile, driven heavily by automotive demand and concentrated supply from Russia and South Africa. Platinum offers broader industrial applications and emerging fuel cell demand. Palladium tends to outperform when gasoline vehicle production is strong, while platinum may benefit from the hydrogen economy transition. Many PGM investors hold both.

Palladium prices surged from under $500/oz in 2016 to over $3,000/oz in 2022, driven by persistent supply deficits. Automotive emission standards tightened globally, increasing catalytic converter demand, while supply remained constrained by the concentration of mining in Russia (40%) and South Africa (35%). Recycling of scrapped catalytic converters has partially offset supply shortfalls, but the market has remained tight. Prices have since corrected as EV adoption reduces future gasoline catalyst demand.

Palladium has unique properties for hydrogen absorption and purification, making it valuable in hydrogen fuel cell technology and hydrogen purification membranes. Some investors see the emerging hydrogen economy as a potential long-term demand driver for palladium, though this thesis remains speculative. Current hydrogen fuel cell designs primarily use platinum catalysts, but palladium-based alternatives are being researched. The investment case depends on technological development and policy support for hydrogen infrastructure.