There is no denying that gold and silver are the most popular among precious metals that are traded. This is mainly due to the various industrial and retail benefits they both offer. However, the advancement of technology has prompted the use of two other metals on a much wider scale. They are platinum and palladium. Most traders don’t realize the various advantageous trading which these two precious metals can offer. (Information courtesy: easyMarkets)
Platinum :- It is the principal metal of the platinum group which also includes palladium. They possess unique chemical and physical qualities that are suited for the construction of industrial materials. Platinum is also a key component in the manufacture of computers and other devices.
Palladium :- It is similar to platinum in many ways including both appearance and function. It is often used as a replacement metal for the jewelry and industrial sectors. It is scarcer in nature than platinum, as it is produced almost entirely in Russia and South Africa.
Both of these metals have a very volatile market and require special attention to trade effectively. Hence it is imperative to understand the differences in behaviour for their markets as compared to other precious metals. There are major factors that make their market different compared to the likes of gold and silver.
The global demand for both platinum and palladium has gone through the roof in modern times. As a result there is a significant increase in price. They are a tool for hedging against inflation and make a smart and safe investment option during volatile market conditions.