What does research firm say about investing in palladium?

Company examines market activity and offers recommendations
By , Coin World
Published : 08/16/16
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The U.S. Mint's planned palladium coin might be coming at the right time.

According to the investment research firm Zacks.com, palladium is one precious metal collectors should seriously investigate.

The firm reports that palladium futures recently climbed to a 14-month high, including a July surge to the largest one-month price gain in eight-and-a-half years.

Price increases are being supported by increased sales, especially in China, in the automotive sector, which incorporates palladium in the manufacture of catalytic converters for automobile emissions control.

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“Analysts also believe that after gold’s stupendous rally so far this year, traders may be trying ‘something new and exciting,’ ” according to Zacks.com. “Maybe investor psychology has humans convinced that if they buy something not so mainstream, maybe they’ll make more money.”

Zacks quotes Street.com, “Palladium supplies are expected to fall by 4% worldwide,” but “demand is forecast to rise by 3%.”

For more on the outlook for palladium and platinum, visit Zack.com.

Just in time for the U.S. Mint's palladium bullion coin

The palladium price increase comes as the U.S. Mint works to put out its new palladium bullion coin, which could hit the market in 2017.

The palladium bullion coin initiative, authorized under the American Eagle Palladium Bullion Coin Act of 2010, Public Law 111-303, requires an obverse that reflects sculptor Adolph A. Weinman’s obverse design from the Winged Liberty Head dime — the same obverse just used for the 2016-W Winged Liberty Head gold dime — and a reverse employing Weinman's eagle design from the reverse of the American Institute of Architects award medal introduced in 1907. Weinman designed the medal in 1906.

Legislation introduced by Rep. Bill Huizenga, R-Mich., was passed in December and signed into law by President Obama, clearing the hurdle for a palladium bullion coin by negating a 2013 feasibility study that suggested that a palladium bullion coin program could not be sustained after first-year projected sales of 100,000 coins. The study forecast viability for Proof and Uncirculated numismatic versions.

The Mint is moving forward with plans for issuing a 1-troy-ounce .9995 fine palladium bullion coin with a legislated face value of $25.

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