With the price of palladium down from the peak price reached during 2008, there seems to be increased interest in creating methods for investing in palladium. I previously wrote a post on the proposal to create a palladium ETF. Now there is a proposal for a United States palladium bullion coin.
A bill was introduced in the United States Senate on April 1, 2009 to create palladium bullion and numismatic coins for the year 2009. The coins would bear the design of the 1907 Ultra High Relief Gold Double Eagle and contain one ounce of .995 palladium. The bill was sent to committee and the prospects of becoming law are uncertain.
According to data from Johnson Matthey, palladium supply for 2008 was 7.51 million ounces while demand was 7.19 million ounces. Investment demand only accounted for 4% of overall demand.
There are no palladium bullion investment coins currently produced by any of the major world mints. The Royal Canadian Mint briefly offered the Palladium Maple Leaf. The coin was only offered from 2005 to 2007 before it was discontinued. They sold approximately 40,000 in 2005, 70,000 in 2006, and 15,000 in 2007.
Current methods of investing in physical palladium are primarily one ounce palladium bars or the Palladium Maple Leaf coins. The coins usually carry premiums of over 50% and it can be difficult to locate a bullion dealer who keeps them in stock. If a new palladium bullion coin is produced, it would likely be available for much lower premiums and much easier to locate.
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