From this article you will learn:
- Why palladium?
- Peculiarities of palladium price behavior. Is it profitable to invest in palladium?
- How to invest money in palladium? TOP 5 options
- Conclusion
Why palladium?
The most common question from people new to precious metals trading is why should you consider palladium? There is no clear answer, just as it is difficult to say why most people choose to buy gold over silver, given that they have a high degree of price correlation.
Palladium is of very great practical importance ; it is actively used in the following industries:
- Jewelry . Alloys with gold and silver are common. Jewelry is rarely made from pure palladium, but in general the metal is in demand, since even in a very low concentration it can color the resulting alloy, for example, white gold.
- Electronics . Like gold, palladium is often used in the manufacture of complex devices.
- Automotive industry . Many will be surprised, but almost every car with a conventional engine contains palladium elements - catalysts. This direction of consumption, according to various estimates, ranges from 60% to 75% of all palladium consumption. Accordingly, if car sales grow, demand also grows.
- Medicine . Some instruments are made using this metal, as well as complex equipment - pacemakers.
The most important reason to consider investing in palladium is the almost continuously growing demand. Every year more and more cars are produced, and we are talking about the most ordinary cars, and not electric cars. The green direction is, of course, developing, but traditional internal combustion engines are still out of reach for now. Therefore, given the limited production capabilities, metal producers will raise prices in conditions of high demand.
However, one important fact must be taken into account: in the United States there are signs of a bubble in the auto loan market. This means that at some point a collapse may occur and sales of new cars will collapse. Accordingly, the price of metal will fall. Therefore, when deciding whether to invest in palladium, you need to take into account that you will have to be interested in the global economy. So far, everything is in order and no crisis is foreseen, and perhaps even this problem will be extinguished before it becomes large-scale.
In general, everything is far from clear, only one thing can be said with confidence - investing in palladium will require time to study the market, you will have to be aware of world events and the state of affairs in the largest economies (in relation to the automobile market), monitor sanctions risks (the main world producer - Norilsk Nickel ), and also be prepared for the fact that you will have to urgently get rid of the metal. Here, however, it depends more on the form in which we invest, we will consider them further.
What does a metal account mean?
A metal account is a transfer of precious metals (gold, silver, palladium and platinum) for safekeeping to the Savings Bank of Russia. A person hands over the value according to the inventory, which indicates the sample, weight, number of ingots, and manufacturer. The financial institution is responsible for the safety of precious metals. She has no right to dispose of them. When the contract expires, the bank returns the valuables to the owner in their original condition.
Important! There is a fee for storing precious metals.
Compulsory medical insurance of Sberbank accounts differs from regular metal ones. The investor buys precious metals at the exchange rate at the time the agreement is concluded, but does not become the owner of the value in physical equivalent. Silver, gold, palladium and platinum are credited to the deposit in 1 gram. “Gold” deposits are in great demand.
Citizens who have opened impersonal metal accounts with Sberbank at the current rate:
- They receive income or loss based on the dynamics of quotes on the world market. If the price of a particular precious metal falls, the investor suffers a loss; if the price rises, the profitability will increase.
- Buys a certain precious metal in the required quantity.
Regarding metal accounts at Sberbank, customer reviews are positive. Deposits are opened for a period of one year with the condition of extension.
An impersonal metal deposit works as follows:
- The client opens a deposit.
- Buys and sells precious metals at the current Sberbank rate.
- Transfers finances.
- Withdraws money in cash or in the form of bullion.
OSM are divided into two types:
- on demand (current);
- urgent (deposit)
In the first case, the investor can make money from rising quotes. For urgent deposits, in addition to increasing the value of the bullion, interest income is provided.
Is it profitable to invest in palladium?
10 years ago, when palladium cost $200 per troy ounce (about 31 grams), no one could have imagined that by 2021 it would rise in price almost 10 times . Metal trading has always been unpredictable. Just when it began to seem that the growth would not stop, the price turned around and went down even faster, and then turned around again. Among traders they joked about this topic: “Why did palladium rise in price by 5% today? Because unemployment has decreased in Bolivia.” That is, prices were not predictable, the price chart for recent years can tell you this - there are sharp rises, and there are no less sharp falls.
This is partly due to the main consumption market – the same car sales. At the moment, palladium costs about $1,900 per troy ounce, and in December it was approaching $2,000, that is, exceeding the historical maximum of gold prices. Nobody knows what will happen next. It is possible that we will see a speculative acceleration to levels of $3,000 and above, which is far from uncommon in such movements. When it seems that there is nowhere to go, the price simply moves vertically with even greater acceleration. And then there is a sharp reversal.
Palladium will not be allowed to fall much, because a reduction in prices is an excellent reason for manufacturers to purchase metal; it will not deteriorate, but will be useful in business; a supply will not hurt . Therefore, when trading, it is worth considering the fact that the cost can vary greatly, it has little correlation with the cost of other precious metals, but palladium lives its own life. It can fall when everyone is rising, and rise when everyone is falling. So far, a confident growing trend has been maintained since 2021, this is a good duration, the movement is justified.
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Are MS profitable for investment?
Individuals planning to open metal accounts with Sberbank are wondering whether this step is beneficial for investment. To make the right decision, consider:
- The degree of influence of political world and regional events on world quotes.
- Spread size.
- Individual characteristics of precious metals.
To make a profit, the Savings Bank of Russia offers attractive investment products: gold, silver, palladium and platinum.
Gold
Investing in gold involves little risk. But the profit percentage is low.
Important! When opening a metal account at Sberbank, take into account the gold rate. It is bought at one price and sold at another, profitable for the financial institution.
“Gold” deposits pay off in at least 6 months. It is worth knowing the concept of “liquidity”. You can quickly cash out funds at the bank if the depositor has changed his plans. But he will lose part of the interest on the profit. If you correctly predict the behavior of this financial instrument, you will have a chance to make good money if quotes rise.
Silver
Silver has shown slight volatility. But there are also short-term jumps over a certain period of time. The investor risks being left without profit or there will be income, but irregular. If we are talking about investing in silver, it is better to open a deposit where the profit is calculated as interest.
Platinum
Due to the economic crisis, platinum prices are falling sharply. In this regard, there is no demand for this precious metal.
Important! According to financier forecasts, this instrument will cease to be popular due to low production profitability, on which the characteristics and state of the world economy depend.
Palladium
This precious metal is widely used in industry and its price is rising. According to experts, its high cost is due to the complexity of extraction.
How to close
To stop operations on the account, it is closed. The bullion is sold to the bank at the current rate and the money is taken. You can also withdraw real precious metal subject to payment of VAT plus a commission to Sberbank.
Through the Sberbank Online service
To close a deposit via the Internet, do the following:
- Log in to your personal account by entering your login and password.
- Click on "Other".
- Select “Metal accounts”.
- On the management page, click on “Operations”.
A list will appear containing the “Close” item. Follow the system instructions to complete the process.
People who decide to invest in metal bars made of gold, silver, platinum or palladium will not go wrong with the right choice of metal. You may ask: is it profitable to open metal accounts with Sberbank? Undoubtedly. This is a great way to insure your savings against currency fluctuations or inflation. You will make money if a particular metal increases in price on the global financial market. Buying/selling can be done online.
Advantages and disadvantages of compulsory medical insurance
People prefer to open impersonal metal accounts in gold at Sberbank. The banking product is available to everyone - you can make a deposit with 1 gram of gold or other precious metal.
Metal accounts at Sberbank have pros and cons. The benefits of compulsory medical insurance include:
- There is no need to incur costs for organizing the transportation and storage of precious metals, as in the case of purchasing it in physical form.
- Absolute liquidity. When virtual gold is transformed into a monetary asset, it does not cause problems for investors.
- When opening an account, VAT is not charged.
- Compared to bars and coins, the difference between purchasing and selling is minimal.
- Possibility of opening an impersonal deposit in favor of a third party.
- Low cost of deposit registration, free account maintenance.
Buying and selling precious metals in impersonal form is easier than purchasing real bullion. The registration of such a deposit is not recorded by the tax service, as when purchasing metal in physical form.
The main disadvantage of compulsory medical insurance is that they are not covered by the law on deposit insurance. If the financial institution goes bankrupt, the client will not receive compensation. It is better to open deposits in government institutions - Savings Bank of Russia.
Income from investing in precious metals is determined by the pricing policy of the financial institution. The investor purchases the bullion at the selling price and sells it at the purchase price set by the bank.
Important! Profit received from the sale of precious metals held by compulsory medical insurance is taxed if the investor has owned the account for less than 3 years.
When a depositor wants to withdraw the real bullion lying on deposit, he will incur considerable costs. The person will have to pay:
- For making an ingot.
- Insurance.
- Delivery of metal to a bank branch.
It is necessary to pay a commission according to the established tariffs.
