Palladium is one of the rarest metals and is nowadays used for investment purposes. The fact that it is 30 times rarer than gold and with a similar price is very well accepted by the investors in their portfolios. Palladium comes in the family of Platinum and has some wide industrial applications. Because of the high demand and less natural supply, its price has gained an upward momentum in recent years. This article will teach you about Palladium investment in New Zealand and how and where to start investing in Palladium.
Check out the basics of palladium investment in New Zealand. : Palladium Investment 101
Check out if palladium investment is still worthwhile in 2022. The price and numbers speaks for itself. : Palladium Investment in 2022
Find out what you need to start investing in Palladium in New Zealand : What You Need For Palladium Investment
Find out what are the main risks associated with Palladium Investment in New Zealand. : Palladium Investment Risk
Find out what are the main rewards associated with Palladium Investment in New Zealand. : Palladium Investment Rewards
Find out how to get stated with palladium investment in New Zealand. Start Investing in Palladium
Palladium Investing 101
Since Palladium is classified under the category of precious metals, conventionally, it has a high demand in physical form. But nowadays, in this digital age, people are not hesitant in buying Palladium in the digital format.
Physical Form: In physical form, Palladium is available in bullions, including coins, bars, jewelry.
Is it worthwhile investing in Palladium in 2022?
It will be logical to ask whether this is the right opportunity to invest in Palladium in 2022, considering the global economic uncertainty.
We need to be aware that most metals usually perform opposite to what the financial market performs. The same goes for Palladium, and We can sense this in the last 12 years’ data on Palladium.
If you carefully look at the yearly chart of Palladium, then you can see how in 2010, it was priced at around $500 while recently, in March 2022, it made its all-time high of $4,125. Have you seen other financial instruments giving you such returns in a limited time frame?
Considering the past data, we can conclude that the prospects for investing in Palladium are good. However, one should take his final call only after considering other factors like the right entry point, future goals and investment objectives.
Who can invest in Palladium?
Since Palladium is available in the digital form of ETFs and other bonds, purchasing Palladium becomes easy. So, anyone who is interested in investing in Palladium can invest.
Before entering into any contract, you need to know the hurdles before investing. For example, buying Palladium in physical form can be risky because of purity concerns. There can be trouble selling Palladium because Palladium is not as easily available in stores like Gold or Silver. Also, short term investment or trading is not suggested for metals like Palladium and Gold, which can even lead to negative returns and high losses.
What do you need to invest in Palladium?
To invest in Palladium, there are some basic amenities or accessories that you should have.
- Money– It is not hidden from anyone that money is required for any investment. You can purchase palladium either through cash or by your credit cards. Many platforms nowadays are even dealing with cryptocurrencies in investment-related transactions.
- Safe– If you are interested in investing in Palladium in bullion forms, storage becomes an important issue. Hence, you can use Safe to store coins or jewellery.
- Digital Storage– You can sign up on any virtual wallet that allows you to keep your virtual assets.
- Insurance– Insurance is not a mandatory element of this investment process. Nevertheless, if you buy any metal in physical form and worry about its safety and security, you should opt for it.
Risks of Investing in Palladium:-
Palladium doesn’t seem to be performing well in the short run. Hence, if you have chosen the wrong entry point and are trying to liquidity your position, it can not provide you with positive returns. An example of this is the current price of Palladium which is $4000 +, and it will be difficult for you to earn any returns in the short run because it is already trading at an all-time high level.
Palladium is rarer than metals like gold and silver, and because of this, it is not as easily available for buying. Also, finding sellers is difficult, especially in physical form. Most jewellery stores keep Gold, Silver or Platinum bars but not Palladium.
Like other metals and commodities, you don’t get any passive income from Palladium in the form of bonuses, splits, or dividends, which can be frustrating for any stock market investor.
Rewards of Investing in Palladium
Since Palladium is 30 times rarer than gold and has wide industrial applications in the electronic and healthcare industry, it has a high demand and very short supply, which makes it a suitable investment tool.
Palladium offers great returns, which you can never get in any stock or mutual fund scheme. Even though it doesn’t provide any dividends or bonuses, it has shown tremendous past performance doesn’t require you to wait for any dividend.
Investments in Palladium can be used to diversify your portfolio and can help you in terms of crises like COVID19 when the stocks were red and gave high losses to investors.
How to get started with investing in Palladium
To get started with Palladium investment in New Zealand, you need to be aware of the different methods of buying Palladium. Nowadays, you can buy Palladium with just a few clicks using your mobile phone or computer.
You can buy palladium through stores that deal with metals like jewellery stores. You can also order Palladium bullions in New Zealand through websites offering coins, bars and collectables.
Since there are some concerns about buying physical Palladium, like safety issues and purity issues, people are enthusiastically buying Palladium in digital form using ETFs, stocks and bonds.
Where to get started investing in Palladium?
As mentioned above, You can buy palladium in either Physical or Digital form.
Physical Form: You can buy a physical form of Palladium in New Zealand through offline and online stores. Before buying Palladium, one thing to note is the quality and making the charge of the bullion. It will be best to buy Palladium in physical form only when you have to gift it or store it as a collectable. But if you want to invest, then the making charges and additional elements like purity costs can be a problem and add up to your investing capital.
An example of a website offering Palladium in New Zealand is:-
- Morris and Watson (Operating in Christchurch and Auckland)
You can sign up on these websites and make transactions using your credit card or bank account. You can also contact them, find out the offered services, and buy directly from their offline stores.
Digital Form: Palladium in digital form comes in the following three main varieties:-
- ETFs- Exchange Traded Funds, commonly referred to as ETFs, are handy investments and allow you to own commodities and metals like Palladium. An example of Palladium is Aberdeen Standard Physical Palladium Shares ETF.
- Derivatives (Futures)- Futures are often used to hedge by many individuals and organizations. Palladium can also be purchased in terms of Future derivatives and used for short term trading. Unless you are an experienced trader, it is not suggested to trade in futures because of the leverage and risk it provides.
- Stocks- Stocks Are another way to invest in Palladium in the digital form and the only way using which you can get some passive income. Since Palladium is a rare metal,, very few companies are known to be operating in this field.
- Norilsk Nickel
- Sibanye Stillwater
- Anglo American Platinum
Steps for investing in Palladium in New Zealand
To invest in gold digitally, you can follow these three steps:-
Select an online platform that allows you to buy ETFs, gold futures or Palladium companies’ stocks mentioned above. Some of the media that provide these services and are recognized by the New Zealand government are- Jarden, JBWere, Investing.com, etc.
Sign up and create your trading account. Some of these platforms may perform your KYC. Once done, add money to your wallet, and you can get started.
Choose appropriate instruments (Stocks, Derivatives, or ETFs) according to your investment objectives and risk appetite.