Investment Coins in Platinum and Palladium: Rare Exotic Investments

Platinum and palladium belong to the platinum group metals and are distinguished by their rarity and unique chemical and physical properties. They are not only relevant for jewelry and coin minting but also play an essential role in industry. The automotive sector, in particular, relies on these metals for catalytic converters, as they help reduce pollutant emissions. This industrial demand, combined with limited global production, makes platinum and palladium interesting investment alternatives.

Platinum Investment Coins: Examples and Availability

Platinum investment coins are offered by various renowned mints. The most well-known include:

• Maple Leaf (Canada) – The Royal Canadian Mint has been minting the Platinum Maple Leaf with a fineness of 99.95% since 1988. Regular production was discontinued in 1999 but resumed in the 1-ounce version in 2009.
• Vienna Philharmonic (Austria) – The Austrian Mint has offered the Vienna Philharmonic in platinum since 2016. The coin is made of 999.5 fine platinum and is mainly available in a 1-ounce size.
• Britannia (United Kingdom) – The Royal Mint also mints the popular Britannia coin in platinum. With a fineness of 99.95%, it is one of the most widely circulated platinum coins in Europe.

Palladium Investment Coins: Examples and Availability

There are also some interesting palladium investment coins, including:

• Maple Leaf (Canada) – Since 2005, the Canadian Maple Leaf has also been available in palladium. It has a fineness of 99.95% and a face value of 50 CAD.
• Cook Islands Bounty (Cook Islands) – This coin is minted in palladium with a fineness of 99.95% and is particularly sought after by collectors.
• Panda (China) – China minted the Palladium Panda from 1989 to 2005 with a fineness of 99.9%. Due to their low mintage numbers, these coins are highly prized by collectors today.

In addition to coins, there are also investment bars available in platinum and palladium.

Diversification Through Platinum and Palladium

Investing in platinum and palladium allows investors to diversify their precious metals portfolio. While gold and silver are traditionally seen as safe-haven assets, platinum and palladium offer the opportunity to benefit from industrial demand.

High Industrial Demand

Unlike gold, platinum and palladium have significant industrial applications, particularly in the automotive industry. As stricter environmental regulations continue to be implemented, the demand for these metals remains stable or even increases. This could have a long-term positive impact on prices.

Rarity and Limited Supply

Platinum and palladium are much rarer than gold or silver. Their global production is limited, as deposits are primarily concentrated in a few countries, such as South Africa, Russia, and Canada. This scarcity could drive prices up in the long run.

Relatively New as Investment Metals

While gold and silver have been used as stores of value for centuries, platinum and palladium have only gained recognition as investment metals in recent decades. This could benefit early investors if these metals establish themselves as mainstream investment options over time.

VAT Liability in Many Countries

A major disadvantage of platinum and palladium coins is that they are subject to value-added tax (VAT) in many countries, including Germany. While investment gold is tax-free, platinum and palladium coins in Germany are subject to a 19% VAT. This can reduce their attractiveness to investors, as the purchase price is significantly higher than the pure material value.

High Price Volatility

Compared to gold and silver, platinum and palladium exhibit greater price fluctuations. Since their value is heavily dependent on industrial demand, economic crises or changes in the automotive industry can have a significant impact on price development. For instance, the growing popularity of electric vehicles, which do not require catalytic converters, has already affected the demand for palladium.

Limited Selection of Investment Coins

Unlike gold, which has a wide variety of investment coins from different countries, the selection of platinum and palladium coins is relatively limited. There are only a few well-established coin series, and not all dealers include these metals in their offerings.

Conclusion: Are Platinum and Palladium Coins Worth It?

Platinum and palladium coins still offer investors an interesting opportunity to diversify their portfolio with rare precious metals. They benefit from industrial demand and limited supply, which could lead to long-term price appreciation. However, investors should consider tax implications, high volatility, and lower liquidity compared to gold and silver. Those who are aware of the risks and take a long-term approach may find platinum and palladium to be a valuable addition to a traditional precious metals investment strategy.