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How to Buy Palladium Bars & Bullion in 2020

Palladium may be less familiar than gold or silver but it’s currently the most valuable of the four major precious metals. With supply struggling to match demand, palladium has rocketed in value in recent years, attracting the attention of investors across the globe. 

If you’re ready to buy palladium online, check out the links below. Or, if you’re wondering what all the fuss is about, keep reading to get the lowdown on this rare white metal.

Buy physical palladium, right now

Palladium is a soft white metal that resembles platinum. It’s the least dense and has the lowest melting point of the platinum group metals. To buy physical palladium, get to know the best palladium dealers for your specific goals and needs. We’ve reviewed some of the top online dealers of palladium coins and bars to help you make the right call.

Trade palladium online, right now

If you prefer to buy and sell more rapidly, trading palladium could be for you. Just keep in mind the transaction costs that come with every trade. Below, you’ll find reviews for the best online palladium brokers.

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0 commissions & attractive spreads with up to 1:5 leverage
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How to buy palladium online; in 6 simple steps

To buy palladium online, it’s important to follow a game plan. Here are six steps to consider before you make your palladium purchase.

  1. Choose your broker or seller. The best palladium brokers and sellers should offer physical palladium in numerous different forms, so you can choose the one you like best. You’ll also want to find a seller that charges competitive fees. And if you’re planning to outsource storage of your palladium, you’ll want to find a seller that stores palladium too. 
  2. Choose your palladium. Palladium bullion can be crafted into two different kinds of products, bars and coins. Bars come in many different sizes, ranging from one ounce to much larger. Coins come in many different varieties and originate from different mints around the world. 
  3. Select your storage options. There are a few storage options to consider. You can have a bank or your broker/seller store your palladium for you.  Alternatively, you can have the palladium delivered to you then pay for your own storage and insurance. Seller storage fees will vary, but you can usually find storage fees as low as £10 per month, depending on the total value of the palladium bars or palladium coins you want to store. 
  4. Lock price and confirm. Palladium prices, like the prices of other precious metals, are prone to fluctuation. With that in mind, you’ll need to lock in your buy price before making the actual purchase of palladium. You will likely have to pay a slight premium over palladium’s current spot price.
  5. Select payment method. When buying palladium, sellers will allow you to buy palladium bars and palladium coins via bank transfers, debit cards, and credit cards. Some sellers will also accept alternative payment methods such as PayPal or cryptocurrency. Make sure whichever palladium seller you choose accepts your preferred payment method.
  6. Buy palladium. You’ve done all your due diligence, so you’re now ready to jump in. Click Buy, and you’ll own the palladium bars or palladium coins you’ve wanted. 

Types of palladium you can buy

Here are some of the different ways you can buy palladium:

Bars

Buying palladium bars could be the best route for you, as long as you keep these important points in mind:

  • Pros: Palladium bars offer the least expensive price per ounce to invest in palladium, and take up the least storage room of any form on palladium on a per-ounce basis. Palladium bars tend to preserve their long-term value, making them a potential hedge against economic turmoil and stock market crashes. 
  • Cons: Like all forms of physical palladium, palladium bars run the risk of theft if you store them yourself. If you buy a larger palladium bar, you might have more trouble selling it than if you bought a one-ounce bar, due to the elevated price. You’ll also likely need to conduct an official assay before selling bigger bars.

Coins and collector coins

Palladium coins come from mints in the United States, Canada, and numerous other countries. 

  • Pros: Palladium coins are easy to store, portable, and can be sold anywhere in the world. Unlike digital assets such as cryptocurrency, palladium coins are impossible to hack. They’re also a great hedge against stock market volatility, and often fare best while stocks are struggling.
  • Cons: Palladium coins are more expensive than bars to produce and to buy on a per-ounce basis. Because palladium coins are light and portable, they’re more vulnerable to theft than larger bars. Palladium coins don’t produce dividends or interest; their value is derived only from the value of the metal itself.

Contracts

A palladium futures contract is an agreement between a buyer and a seller, in which the buyer agrees to purchase palladium from the seller at a given price and a given future date.

  • Pros: When buying a palladium contract, you only have to pay a certain amount up front, with the rest due on the trade’s closing date. You also don’t need to keep palladium futures stored anywhere, the way you would bars or coins.
  • Cons: The palladium futures market can be volatile, making significant losses possible. Since you’re betting on future results, you’ll pay more a bit more than the spot price of palladium when making your purchase.

Where to buy and store palladium – physical vs digital

There are multiple options to buy and sell palladium online. Here they are: 

Physical – online storage

Many online palladium sellers will also offer storage services. Just consider the size of your palladium portfolio first: If your total palladium investing budget is less than $1,000, a significant chunk of that amount (at least $100 per year) would be spent paying the seller to store the palladium for you. 

Physical – home delivery

You can choose to get home delivery of palladium, then install a vault for storage in your home. This gets you out of paying storage fees to a third party. On the downside, risk of theft goes up if you store palladium in your home. Plus you’ll need to buy insurance to protect your investment, adding to the total cost.

Physical – highstreet brokers

If you want to store your palladium outside of your home but prefer face-to-face interaction to online transactions, you can go to your local highstreet broker and explain your storage needs. Highstreet brokers will process your palladium purchase and store palladium for you, eliminating the security risk that comes with stashing palladium in your home. 

Palladium stocks

Although not as common as gold and silver mining stocks, there are still a fair number of publicly traded palladium stocks that offer an indirect way to invest in palladium. If you buy the right palladium mining stock right before that company makes a big discovery, you could make a much bigger gain than you would by simply buying palladium bars or coins. Just know this: A spike in palladium prices doesn’t guarantee the same uptick in palladium mining stock prices. 

Palladium mutual funds and ETFs

When buying a palladium mutual fund or palladium exchange-traded fund, you’re investing in many different palladium mining stocks at once. That way, you’re nullifying a lot of the volatility that could severely damage your portfolio if you own only one or two stocks. Still, just as with buying an individual palladium mining stock, buying a collection of palladium mining stocks could result in lesser gains than simply buying physical palladium.

ETC – palladium contract

An exchange-traded commodity (ETC) is traded like shares of a stock; if you buy an ETC palladium contract, its price will fluctuate in value based on the price changes in palladium. While a palladium ETF invests directly in the physical commodity (or in futures contracts), an ETC is a debt note backed by an underwriter.

Banks

One of the least complicated methods to buy, sell, and store palladium is through a bank. You can use a bank’s vault to take care of storage, so that part is covered. Just be aware that some banks might charge more to sell you palladium than an online broker will. 

Read our educational guides and courses to learn more about various investment and storage methods. If you’re ready to invest, click on the links above.

How to sell your palladium

When selling palladium, consider these factors:

  1. Is the palladium seller/dealer reputable? Before buying palladium, check out palladium sellers’ online reviews to get a better feel for their history and reputation.
  2. Is the palladium seller/dealer’s commission competitive? Don’t overpay for transaction costs. A typical fee to purchase palladium is around 0.5%; it could be a little higher if you want to place a limit order instead of a market order.
  3. Where is the demand coming from? Of the four precious metals, palladium is the least well known. Still, as a rare element used by industries ranging from automotive to dental, chemical to electrical, it offers numerous industrial uses, in addition to gaining increasing attention from collectors. That can hike demand.
  4. What’s your timeframe for selling? Do you want to make money fast, or hold onto your palladium bars or coins for years, or even decades? Come in with a plan, but be ready to adjust if market conditions change dramatically. 
  5. What is the current price of physical palladium? If it’s near an all-time high, you might want to ask yourself if it’s overextended and due for a pullback. If it’s well off its recent high, it could bounce back…or keep falling.
  6. What is your hedging strategy? Like gold and silver, palladium can be used as a hedge against bear markets for stocks. Since palladium often rises in prices when stocks turn south, you could wait for a bear market for stocks, then cash in your palladium profits. Alternative, you can just buy and hold your palladium for years and years, ignoring market cycles.

Our top tips for investing in palladium

Follow this quick tip sheet before you start investing in palladium:

  1. Select the type of palladium you want. Palladium is typically priced per ounce, making one-ounce bars and coins a popular choice. Sellers will often sell 10-ounce bars as well. 
  2. Have a sound plan for when you want to sell. Whether you’re looking for quick gains or a future nest egg, know your investment goals before you invest. 
  3. Select your storage options and location. For many people, outsourcing the hassle and worry of storage to a palladium seller or a bank is worth the cost. You can also choose to find a secure storage space in your home, buy insurance, then store the palladium yourself.
  4. Assess the quality of the palladium. The purest form of palladium is 99.9% pure. Similar to platinum, palladium is often used as an alloy, with 95% purity. Like silver, palladium is often mixed with gold to create white gold.
  5. Keep an eye on supply. About 40% of the worlds mining supply comes from just one Russian company, Norilsk. If Norilsk falters in any way, the price of palladium could shoot sharply higher, due to lack of supply.
  6. Know how much you’re paying in premiums, commissions and prices. Different palladium brokers offer different commission structures. If you’re buying palladium futures, check how much of a premium the seller charges on top of the palladium spot price. 
  7. Don’t let emotions cloud your judgement. Don’t let fear and greed dictate how and when you buy and sell palladium.

Try some of our investment courses for beginners

If you’re still not quite ready to invest in palladium, you can learn more about how to buy, sell, and store palladium with our easy-to-understand educational courses. Our courses will help you learn how to become a better palladium investor.

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By Harry Atkins
Harry joined us in 2019 to lead our Editorial Team. Drawing on more than a decade writing, editing and managing high-profile content for blue chip companies, Harry’s considerable experience in the finance sector encompasses work for high street and investment banks, insurance companies and trading platforms.
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