What palladium is
Palladium is a silvery-white platinum group metal, discovered in 1803 by the English chemist William Hyde Wollaston and named after the asteroid Pallas. It is lighter than platinum and melts at a lower temperature.
Like platinum, it is a superb catalyst. It also has an unusual ability to soak up hydrogen, up to hundreds of times its own volume, which makes it useful in hydrogen purification.
Where palladium demand comes from
Gasoline catalytic converters
Around 80% of demand. Palladium turns harmful exhaust gases into less harmful ones.
Electronics
Used in multilayer ceramic capacitors and plating.
Dentistry and chemicals
Dental alloys and industrial catalysts.
Investment
A small share. Coins, bars and ETFs exist, but the investor market is much smaller than for gold or silver.
Two countries dominate supply
Russia, mainly through the mining company Nornickel, and South Africa together produce most of the world's palladium. Canada, the United States and Zimbabwe add smaller amounts. Much of it is a by-product of nickel and platinum mining, so output doesn't simply rise when the price does.
Sanctions, export rules or mine problems in either main producer can shift the global price quickly.
Boom, bust and the electric-car question
Tighter emissions rules increased the palladium needed in every gasoline car, and the price climbed past gold's in 2019, reaching record highs in early 2022. It then fell sharply as demand softened, carmakers switched some palladium for cheaper platinum, and the market moved toward surplus.
The long-term question is electric vehicles. Fully electric cars don't need catalytic converters, while hybrids still do. How fast the car fleet changes will shape palladium demand for years.
Ways to own palladium
| Product | Issuer | Purity | Worth knowing |
|---|---|---|---|
| American Palladium Eagle | US Mint | .9995 | First issued in 2017 |
| Canadian Palladium Maple Leaf | Royal Canadian Mint | .9995 | Issued in some years rather than every year |
| Palladium bars | Refiners such as PAMP and Valcambi | .9995 | Usually the lowest premium per ounce |
Palladium can also be held through physically backed ETFs and futures. Few dealers keep much palladium in stock, so availability can be patchy.
Try it
Melt value calculator
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Melt value
$1,191.40
0.9995 troy oz of pure palladium
Melt value is the metal content at spot. Dealers sell above it (the premium) and usually buy below it. Rare coins can be worth far more than melt.
Watch out for
Things to watch out for
- The most volatile precious metal. Large moves up and down over months, not years, are normal.
- Demand rests on one industry. Car sales, emissions rules and the shift to electric vehicles drive most of the price.
- Supply rests on two countries. Political events in Russia or South Africa can move the market overnight.
- Thin dealer market. Premiums can be high and buyback prices less competitive than for gold or silver.
Good to know
Frequently asked questions
Why did palladium cost more than gold?
From 2019 to 2022, stricter emissions rules pushed demand from carmakers above what mines could supply. When a market runs short, prices can rise far beyond what scarcity alone would suggest.
Is palladium a precious metal?
Yes. It's one of the four main precious metals traded as bullion, alongside gold, silver and platinum.
What happens to palladium if everyone drives electric cars?
Fully electric cars don't use catalytic converters, so demand would fall over time. Hybrids still use them, and the switch is gradual, so the effect depends on how fast fleets change.
How is palladium different from platinum?
They're chemically similar and often mined together. Palladium is lighter, has a lower melting point, and is used mainly in gasoline cars, while platinum is used more in diesel cars, jewelry and industry.
Can palladium go in a retirement account?
In the US, palladium bullion of .9995 purity or higher can generally be held in a self-directed IRA through a custodian and approved depository.
This guide is for general education only and isn’t financial, tax or legal advice, and a link to a dealer isn’t a recommendation to buy. Facts about markets and products change, so check current details, premiums and fees, and talk to a licensed adviser before making decisions.