Palladium Coin: All You Need to Know to Invest

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Palladium hasn’t been around for as long as gold. In fact, the metal was only discovered in 1803. However, this rare precious metal has seen its value grow exponentially over recent years.  The increase in demand is mostly due to the industrial use of the metal. The precious metal is used in many types of products, from electronics to cars.

Let’s take a look at why palladium could be a good investment for the long term. And we’ll have a look at some of the most popular palladium coins on the market. Some of the prices of these coins are much higher than the spot price of palladium because of their collectability. While others only have a small markup, these are considered bullion coins. 

Is Palladium Coin a Good Investment?

Palladium, just like other precious metals, is a great portfolio diversifier. Their price-performance has a low correlation to that of stocks and bonds. So, adding palladium to your portfolio reduces the overall risk of your portfolio if you're heavily invested in traditional asset classes. 

Palladium holds many of the characteristics of gold. The metal is malleable, attractive, and durable. It has caught the attention of the wider retail investor in the past two decades. But these features and their use in many fields of production mean palladium should also stand the test of inflation. And inflation certainly looks like it is back to stay.  

Recent Performance

The chart below shows the price performance of palladium and gold during the past 5 years. As we can see, palladium by far outperformed gold. Over the period palladium has risen by over 146% compared to gold’s increase of just under 45%. 

However, palladium is also a much more volatile asset, as we can determine by the high peaks and low troughs. For example, in 2021 palladium had almost tripled its value from January 2018 and has since retraced by almost 49%. On the other hand, gold has a more stable growth pattern.


Source: TradingView

Palladium Coins for Sale

Various countries have minted palladium coins since the 1960s. These countries include Australia, Russia, China, Canada, and the United States. However, not all countries have continued to mint these coins due to the sharp increase in the value of the underlying metal.

The list below includes coins that have a high demand, and some are relatively easy to buy and sell. Having said that, palladium still hasn’t reached the popularity enjoyed by gold and silver. Palladium is relatively a newcomer to the scene. So, it may be harder to sell or buy than the well-established precious metals. Some coins in the list are rare but worthy of note.

Russian Ballerina

The USSR was one of the first countries to start minting palladium coins. After it dissolved, Russia continued to follow in its footsteps. The Russian mint issued palladium coins between 1989 and 1994. Of the most notable coins from its collection is the 1oz Ballerina. This coin was minted to celebrate the Bolshoi ballet and features different designs of a ballerina throughout the series.

The obverse of the coin (left image) shows the image of a ballerina from a 1oz coin minted in 1989. The reverse (right image) shows the Soviet emblem of hammer and sickle and the abbreviation for the Soviet Union in Cyrillic. Only 27,000 of these coins were minted. The Russian mint issued these coins in various weights, 1oz, ½oz, and ¼oz.

Canadian Maple Leaf

The Canadian Palladium Maple Leaf is a continuation of the series of Maple Leaf coins in gold, silver, and platinum. The Canadian mint issued the first palladium coins from 2005 until 2007. In 2009 they started minting them again in yearly series. The Palladium Maple Leaf has the same attractive design as its peers made in other precious metals.

The Maple Leaf is a distinguished coin renowned for its quality strike and beautiful design. The Canadian palladium coin is also known for its highest level of purity. 

 

The Obverse has the image of Queen Elisabeth II, with the inscription “50 Dollars 2017”. 50 dollars is the face value of the coin, a feature that is often used in minted coins but clearly doesn't reflect the coin's value.

Canadian Little & Big Bear Constellation

This is an extremely rare, minted coin. The Canadian Mint only issued 1,200 of them in four different series. The coins, minted in 2006, have four different obverses. Each design represents the constellation of Ursa Minor and Ursa Major in the four different seasons. Each design was minted in 300 pieces.

The obverse shows a design of the two constellations in the night sky as you would see them in Canada. At the top, you can see the inscription “Canada 50 Dollars” and the year of coinage. The reverse side depicts the head of Queen Elizabeth II.

Chinese Panda

Most people around the world love pandas and their popularity in China is very high. The black and white mammal is considered the yin and yang of living creatures. Representing balance in the universe. As an investor, this palladium coin may also bring some balance to your portfolio.

The People’s Bank of China issues palladium coins each year, and designs change often. Each year features a panda in some kind of activity. Some designs portray a mother and baby panda, pandas drinking water, or walking next to bamboo.

Some of these coins were minted in very low-limit editions. For example, in 1989 the central mint of China created only 1,000 1oz Proof Palladium Panda. As you can imagine the value of these coins is many times the spot value of the underlying metal.

The Chinese central mint also offers palladium coins in ½oz format. An example of such coins is in the two pictures above. The obverse shows the image in high relief of a mother panda and her cub next to some bamboo. While the reverse features a design of the Imperial Pagoda in the summer palace in Beijing. 

Australian Emu

The Australian Palladium Emu is one of the rarest palladium minted coins out there. Its rarity is due to the limited number of years The Royal Australian Mint produced these coins. Production of the palladium Emu started in 1995 and ended just three years later. The abrupt interruption came about because of the sharp increase in the spot price of palladium.

The rarity and the beauty of this coin make it extremely sought after by collectors and investors of precious metals alike. Between 1995 and 1998, the Australian mint made 2,500 of the 1oz Proof Palladium Emu for each year. 

The Obverse shows the right-facing image of Queen Elizabeth II. With the inscription “40 Dollars Australia”, and her name. The reverse shows an ostrich coddling her eggs among some grass, along with the year it was minted.

American Eagle

This coin is my particular favorite. It's made in America and shows your national pride. It's something that will become an heirloom as it is handed down from one generation to the next. The American Eagle 1oz palladium bullion coin, however, is a newcomer to the scene. The US Mint only started making these palladium coins in 2017 and has continued production for each year since.

In 2018, the US Mint also started making collectible American Eagle palladium 1oz proof coins. The US Mint has continued to issue new series of collectible palladium coins each year. Each series is minted in a limited edition, their rarity makes these coins that bit more special.  

In 2021 the US Mint made 12,000 Palladium Proof coins, in 2020 a limited edition of only 10,000 coins of the American Eagle 1oz Palladium Uncirculated coins were made. For 2019, the US Mint produced 30,000 American Eagle Palladium Reverse Proof coins.

The obverse shows the likeness in high relief of the Winged Liberty, designed by the renowned Adolph A. Weinman. This design was originally used on the Mercury Dime originally minted for the first time in 1916. The reverse shows a high-relief image of the eagle from the 1907 Institute of Architect's Gold Medal. The “inscription E Pluribus Unum” translates to “Out of Many, One”.

Palladium Coin Dealers

There are many precious metals dealers out there, most buy and sell palladium coins. Of course, you can buy and keep your palladium coins in a safe at your house or a bank. In either case, including precious metals in your IRA makes all the sense given the tax benefits it derives. 

We have compiled a full list of these precious metals IRA companies. They are ranked under various categories such as best overall, best for beginners, or best for numismatics to mention a few. 

Palladium IRAs

You cannot invest in all types of precious metal coins through your IRA. For you to do so, the IRS has to consider the coins as bullion. If the coin is not minted, then you most likely have a coin that has a greater value than that of the underlying metal. This extra value means the coin is considered as a collectible and you cannot include these in an IRA.

Setting up a precious metals IRA can seem an overwhelming task. However, you can streamline the process with the help of specialized precious metals IRA companies. Learn how to start investing in palladium coins with our downloadable free guide.

About Author

Gino D'Alessio
Gino D'Alessio

Gino D'Alessio is a broker/dealer with over twenty years experience in various OTC markets such as bonds, FX and derivatives. He is currently a financial markets and investments writer & analyst.

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