Palladium is an underdog among precious metals.
It has some unique attributes that set it apart from the "big three" — gold, silver, and platinum. So if your goal is to have a diversified portfolio of precious metals, investing in palladium can be a good choice.
Before you go out and buy palladium bullion/coins, it's important to realize that prices for this metal are quite volatile, and fluctuations are more dependent on industrial demand than metals like gold, where industrial use is considered a secondary market mover by many investors.
In 2001, the price of palladium peaked at over $1,100 per ounce. It currently trades around $320. A drop like that will pique the interest of contrarian investors, and cause heartburn in more conservative ones.
Click here for more basics on investing in palladium.
