Selling Palladium: Everything You Need to Know

Interest in precious metals investing has recently skyrocketed. Gold and silver remain the top choices, but palladium has also garnered plenty of attention. Of course, the end goal is to make a profit. Unfortunately, many people make mistakes when selling palladium on the open market.

Some of these mistakes come from being new to selling bullion. Alternatively, longtime investors can lose money by not recognizing inherent risks of using certain online platforms. Regardless of a person’s experience in the industry, everyone can benefit from learning more.

At Silver Gold Bull, we want each of our clients to be as informed as possible when buying or selling palladium. This guide will help you get a better understanding of the precious metal and what you need to know to maximize your profit potential.

Selling Palladium Later Might Net Higher Profits

Anyone who watches precious metals charts has noticed palladium’s stellar performance over the years. The metal sold for just over $100 throughout most of the 1990s. When it suddenly broke the $3,000 mark in 2021, industry analysts and investors all took note.

In fact, the metal’s high price is likely why many people are considering selling palladium from their portfolio. If you fall into this category, unloading some or all of your bullion might be the right choice. Of course, it could also cost you potential profit down the line.

While there’s no way to say for certain how palladium will perform in the coming years, several trends are indicating that it could continue to rise. Even one of the following factors could mean big things for the precious metal’s future.

Deficits Making Selling Palladium Profitable

One of the main reasons palladium’s price is so high relates to supply. Experts expected a deficit of around 1 million ounces in 2021. This would serve as the 10th consecutive yearly deficit. Fortunately for those hoping to sell the metal, these deficits show no sign of ending.

If demand for palladium continues to outpace supply, the price has nowhere to go but up. This is why it’s important to stay on top of precious metals news. You can learn about important trends as soon as the experts do, so you’ll be in a better position to make smart investment decisions.

Mining Disruptions

Both natural and man-made issues have created problems for palladium mining. For instance, South Africa experiences rolling blackouts which disrupt the process. Russia also sees issues due to flooding in their mines. Both countries are major producers of the metal.

When you’re selling palladium, it’s good to do so when demand is high. Of course, it’s been high for a decade now. If you can wait to sell during temporary spikes related to supply issues, though, you can make more than you might expect.

Of course, many investors sell parts of their palladium holdings during this time while maintaining some in their portfolios. This lets them take advantage of temporary price increases while still investing in the metal long term.

Environmental Regulations

Scientists agree that a climate catastrophe may be in our future. Because of this, legislators around the world have created environmental regulations to reverse course. This means good things if you’re interested in selling palladium.

That’s because palladium is a primary component in catalytic converters. These auto parts reduce harmful emissions that come out of vehicles, so their demand has increased alongside the focus on saving the world.

It’s important to note that a shift to electric cars could stymie potential profits, but if we go in the direction of hydrogen cells, palladium could still remain high. That’s because the precious metal is in these cells and remains essential for the detection, storage, and even purification of hydrogen.

Major Shift from Diesel

When most people buy palladium bullion, they likely don’t realize that diesel usage rates could affect their investment. As the world moves away from this fuel, though, that’s exactly what’s happening.

While platinum is used for catalytic converters for diesel vehicles, autos that use regular fuel need palladium converters. As diesel falls out of favor, palladium’s appeal will only continue to grow.

You Might See Quick Price Changes

Several factors point toward price increases that could make selling palladium later more profitable. Of course, this doesn’t necessarily mean you should wait. There’s no guarantee in the precious metals world, and quick price changes could potentially minimize your profits.

For instance, a single day in March 2019 saw a drop of over $112. This means if you had $8,000 worth of palladium on March 21 and waited until March 28 to sell, your bullion would’ve been worth less than $7,000. Patience isn’t always a virtue.

The lesson here is to plan your exit strategy. If you plan on selling palladium when it hits a certain price, waiting can cost you money. At Silver Gold Bull, we lock in your price when you sell with us. That means you won’t lose money even if the price suddenly drops.

Selling Palladium at Spot Price Is Unlikely

Many people new to precious metal investing are hit with an unhappy surprise when they go to sell their bullion. When they visit a local buyer or national dealer’s website, they suddenly discover they can’t sell their item at spot price. This is initially a tough pill to swallow.

For investors that have bought and sold palladium for years, this is an expected and necessary occurrence. The simple fact is that dealers have to make a profit on their purchases. Someone who buys and sells palladium at spot price wouldn’t be in business for long.

This leads many people to visit eBay when trying to sell bullion. If you’ve been on the site, you’ll see that everything from massive palladium bullion bars to tiny coins sell for higher than spot. Unfortunately, you’ll never be able to pocket that money from the website.

Selling Palladium on eBay Can Cost You Big

It’s easy to get excited about the prospect of selling palladium on eBay. After all, these items consistently sell for higher than spot value on the platform. Unfortunately, many new sellers don’t realize they’ll have to pay high fees to use the e-commerce site.

Additionally, there’s a growing number of buyers engaging in the “empty box scam.” After receiving their item, some buyers report they were mailed an empty box. Since eBay is adamant about protecting buyers, you may face an uphill battle trying to not lose your investment.

Always Sell Precious Metals to Reputable Dealers

Selling palladium on eBay may not be the best move, but you can still sell to private buyers. If you’re selling to someone you know, this might be a great way for both of you to get a deal. If you opt for online platforms like Craigslist and Facebook Marketplace, though, you could encounter risks.

Unfortunately, criminals have taken to these websites to target their next victims. The nightly news is often inundated with stories of robberies stemming from these meetups. If you go this route, it’s advisable to meet buyers at a police station to minimize the chance of things going bad.

Work With Major Dealers

If you look locally when selling palladium bullion, you’ll no doubt find various options. Plenty of people head over to pawn shops, but this always proves costly. When selling to a pawnbroker, you could expect to get as low as 35% of your item’s value.

If you’re lucky, there’s a local dealer around. Unfortunately, this can also cost you money. Small dealers have higher overhead costs relative to their sales volume. This means they’ll need to offer as low of a price as possible to make their purchase profitable.

Selling your palladium to an international dealer like Silver Gold Bull is the way to go. More resources, industry connections, and a global infrastructure means we can offer the best prices available for palladium bullion.

Sell Palladium Today with Gold Silver Bull

Whether this is your first time selling bullion or you’re a seasoned seller, there’s something exciting about dealing in precious metals. Once you’ve experienced both sides of the transaction, it feels as if you’re a full-fledged investor.

Unfortunately, simple mistakes can turn potential profit into major losses. By fully informing yourself prior to selling palladium, you can minimize the risk to your investments. In the long run, this is one of the smartest ways to ensure your own financial future.

At Silver Gold Bull, we strive to meet the needs of all our clients. Even if you haven’t bought bullion from us, we’re willing to offer top dollar if you’re selling palladium. Visit our Sell Precious Metals page today and you’ll see why our clients trust us for all their bullion needs.