Gold is money. Palladium is a commodity. Understanding this distinction is vital for building a resilient portfolio.
Gold
- Role:Store of Value, Currency, Safe Haven.
- Demand:Central Banks, Investment, Jewelry.
- Stability:High. The ultimate hedge against chaos.
- Outlook:Long-term bullish due to currency debasement.
Palladium
- Role:Industrial Catalyst.
- Demand:Almost exclusively automotive (gasoline engines).
- Stability:Low. Can skyrocket or crash based on car production.
- Outlook:Uncertain. EV transition poses a structural threat to long-term demand.
Our Advice
Gold should be the foundation of your precious metals portfolio (the "Savings Account").
Palladium is a speculative asset. It belongs in the "Growth" or "Speculative" portion of your portfolio, not the "Safety" portion. We generally do not recommend it for long-term retirement holdings due to its single-industry dependency.