I have the opportunity coming up to purchase some PMs. With this I can afford even a 1 oz Gold Buffalo or the Palladium Maple Leaf I've always wanted. But what IYO is the better buy/investment. Tubes of silver eagles/leafs, junk silver, palladium or gold buffalo/eagle/leaf?
I'd stay away from the high premium stuff right now. The sell/buy spread is really high on some stuff. Gold eagle wouldn't be bad. Any silver under 99 cent markup isn't too bad. I got a gut feeling the bullion biz is going to grind to a halt soon if the prices don't moderate. I can tell you this. I used to watch bullion prices on a daily basis. Now, I don't look more than once a week.
I bought 2 grams of palladium at a huge markup ($10/gram premium) anticipating using them to smelt some 18k white gold for my wife's wedding ring. That was before I looked up the melting temperature of palladium (whoops...). That is truly an *industrial* metal. I ended up using nickel and silver to cut it down to 18k. The other lesson learned is that there is really no other use for it unless you are a high end jeweler or computer manufacturer. They don't mint coins from it, it's rare to use in hand made jewelry, and it really doesn't have the investment appeal of the more common metals like gold and silver. That said, you find the right opportunity - it's still a valuable commodity. For the most part there are huge premiums on small quantity and limited demand from the average PM investor. I have 2 grams of it that will probably remain with me until I die unless someone wants to pay me a ridiculous premium as well.
Palladium is cytotoxic, so I still don't know why it's used in jewelry. I would minimize handling palladium, if you can help it.
Ack! I did a bit of research before attempting, but obviously not enough. I looked at metal blends for white gold and palladium looked the cleanest white color. And now something else I learned about palladium tonight - and had to look up a word in the dictionary. I guess I'll leave the palladium in the folders it came in.
A good thing to ask yourself before you buy, is how/why would you liquidate? Silver, has the potential for easy gains... and nearly just as quick losses. It is pretty low right now. I've read some mixed articles on cost of getting silver above ground. It's generally not a primary metal target, it is usually secondary, so the cost is a bit murky. I personally hold silver for long term. It's liquidation is relatively easy, and price jump potential great for easy gains/profit. Gold, well; it's more for storing wealth. People in "the stock market" use it basically as an inflation/market crash safeguard. It too has price swings, up and down. Just not quite as radical, % wise. Dollar wise, it fluctuates far more than silver in dollar values. But it's outlook is seemingly great especially with the current financial system. For liquidation it is by far the easiest of PMs to sell. Some places will just buy gold and no other PMs. Platinum/Palladium are both industrial metals, used in Catalytic converters in cars. neither have ever been used as a national currency as far as I can tell, unlike your Silver/Gold. They do make bullion rounds but historically speaking, it wasn't used as a currency. Also, liquidation is not as easy. Pawn shops might take platinum but look at you funny if you say palladium. if I have to sell my palladium I'll probably find a private collector. If we find a way to get rid of exhaust systems, platinum/palladium/Russia will see a huge decrease in value. In conclusion, what reason or why am I stacking? and What is my exit plan for this stack? are two very important things to ask yourself. It may help you find the answer you are looking for. Anyway, those are my two wheaties
Platinum will hold value, even if we get rid of combustion engines. It has purposes beyond catalytic converters, jewelry and bullion. It's physical properties are difficult to match, and necessary if we ever decide to stop living on the land in this lonely planet.
yeah, my weak industrial demand bit could be said for all PMs - after thought. And palladium/platinum do have a more exciting market for price. For me though, it's high price point makes it hard to invest. It's history just isn't there either like with silver/gold coins. (for me, in MY opinion, disclaimer done ) Edit: basically made full sentences
This is a HIGHLY controversial claim. It is claimed primarily by "alternative medicine" adherents and is based mostly on junk science. Yes, some complexes of palladium are cytotoxic, but the metallic form found in coins (Canada, Russia) is FAR closer to being chemically inert than toxic per se. It is widely used in catalytic converters and they emit palladium into the environment. Do you really think the auto industry would knowingly use a cytotoxin in a device specifically designed as a environmental protection device? Anyone sensitive to nickel will likely be sensitive to palladium. Are we banning nickel from coinage?
The compounds are chemotherapy compounds. They have to be cytotoxic to do anything against the prostate or colon cancer cells they have been compared with standard treatments. That their results have been published in relatively non-respected scientific peer journals rather than the major ones leave doubt as to their basis. The tetracyclines used in the compounds are more worrisome to me than the palladium metal, although the bonding looks very stable. But if you have prostate ( most of us men will if we live a long life) or colon cancers, I guess it is a no-brainer if standard methods do not work.
My wife has a Volkswagen TDI - so.... Yeah, maybe if they thought they could get away with it. Can't wait to see the outcome on this. Lest I mention the EPA and MTBE.
