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How to invest in palladium stocks in Australia

It’s rare and in high demand, but electric vehicles could pose a serious threat.

Palladium is a high-value metal that is both tricky to source and in high demand — especially from car manufacturers. With the precious metal outperforming both gold and silver in recent years, Australia's palladium stocks are well-positioned to take advantage of the growth in the sector.

But with a history of volatility and the future of electric vehicles uncertain, there’s no guarantee it will continue to hold its value. This guide explains what palladium is used for, why you might invest in it and offers a list of palladium stocks in Australia.

ASX palladium stocks

There are few pure-play palladium stocks, as most of the palladium that’s manufactured is produced as a byproduct of other metals. So if you plan to invest in this commodity, prepare to back mining companies that produce other materials too, like platinum.

Below is a list of Australian-listed palladium stocks:

Which ETFs track the palladium category?

There are at least a dozen palladium ETFs listed around the world. In Australia, we have just one palladium focused ETF, alongside a precious metals ETFs which tracks palladium alongside platinum, gold and silver:

  • ETFS Physical Palladium (ETPMPD)
  • ETFS Physical Precious Metal Basket (ETPMPM)

What is palladium?

Palladium is a bright, silver-white metal primarily mined in Russia and South Africa. It’s typically produced as a byproduct of mining other materials, like nickel and platinum. It is one of the six platinum-group metals, a group that includes iridium, osmium, platinum, rhodium and ruthenium.

We’re most likely to encounter palladium when driving a vehicle, as nearly 85% of mined palladium finds itself in the exhaust systems of cars. It’s a vital component of the catalytic converters responsible for transforming toxic pollutants into carbon dioxide, nitrogen and water vapour. Palladium is also used in dentistry, electronics, medicine and jewellery manufacturing.

Why invest in palladium stocks?

Palladium is 30 times rarer than gold and as demand for this material continues to rise, so do its prices.

The cost of palladium has been on the rise since 2016, hitting an astonishing high of over US$3,000 per ounce in May 2021.

Why is palladium on the rise? In short: demand. Anytime the demand for a commodity outpaces its supply, the price of that commodity rises. And palladium supplies have been unable to meet global demand since 2012.

And the good news for investors is that the demand for this metal looks like it will continue its upward trajectory. With our heavy reliance on palladium in catalytic converters and rising global pressure to ditch high-emission vehicles, car markers need more palladium than ever. And since the metal isn’t easily replaced, palladium demand is high.

The bottom line? Palladium is valuable, and trends in global demand for this metal are poised to drive its value higher still.

Risks of investing in palladium

Despite palladium’s rising price tag, this commodity hasn’t always been such a hot commodity. In fact, the metal has a history of volatility and is only valuable so long as it's needed.

While car manufacturers have yet to find a palladium workaround, a replacement isn’t exactly out of the question. And with palladium being so rare and cumbersome to produce, it’s quite possible that an alternative could be found — especially given the failure of palladium miners to meet increasing global demand.

Another threat to consider is the rising popularity of electric vehicles. The electric vehicle market is growing — fast. And this could act as a significant market disruptor for palladium since electric vehicles don’t require catalytic converters.

What are the top performing palladium stocks?

Palladium stocks are stocks from companies that produce palladium — mining companies, mostly. Unfortunately, there are few pure-play palladium stocks, as this metal is typically produced as the mining byproduct of other materials, like platinum.

Here is a list of the top palladium stocks to watch:

  • Norilsk Nickel (MCX:GMKN, LSE:MNOD)
  • Sibanye Stillwater (NYSE:SBSW)
  • North American Palladium (NYSE:PAL)
  • Stillwater Mining (NYSE:SWC)
  • Impala Platinum (OTCMKTS:IMPUY)

Palladium performance

This graph shows the spot price per ounce of palladium.

Compare trading platforms

You need a brokerage account to invest in palladium stocks. Compare your platform options by features and fees to find the account in Australia that best meets your needs.

1 - 7 of 7
Name Product Price per trade Inactivity fee Asset class International
eToro
Finder AwardExclusive
eToro
$0
US$10 per month if there’s been no log-in for 12 months
ASX shares, Global shares, US shares, ETFs
Yes
Finder exclusive: Get 12 months of investment tracking app Delta PRO for free when you fund your eToro account (T&Cs apply).
CFD service. Capital at risk.
Join the world's biggest social trading network when you trade stocks, commodities and currencies from the one account.
CMC Invest
Finder Award
CMC Invest
$0
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Yes
$0 brokerage on US, UK, Canadian and Japanese markets (FX spreads apply).
Trade over 45,000 shares and ETFs from Australia and 15 major global markets. Plus, buy Aussie shares or ETFs for $0 brokerage up to $1,000 (First buy order of each security, each day - excludes margin loan settled trades).
Moomoo Share Trading
US$0.99
$0
ASX shares, Global shares, US shares, ETFs
Yes
Finder exclusive: Get an additional 30 days on top of the regular brokerage-free period for new accounts. T&Cs apply.
Trade shares on the ASX, the US markets and buy ETFs with Moomoo. Plus join a community over 20 million investors.
Spaceship US Investing
US$0
$0
US shares, ETFs
Yes
Dive into US markets with $0 brokerage, starting with just a $10 investment.
Unlock US stocks and ETFs with minimal entry barriers, offering straightforward, low-cost options for new and seasoned investors.
Tiger Brokers
US$2
$0
ASX shares, Global shares, US shares, ETFs
Yes
Finder exclusive: Get 10 no-brokerage US or ASX market trades in the first 180 days + 7% p.a. on uninvested cash + US$30 TSLA & US$30 NVDA shares with deposits up to AU$2,000. T&Cs apply.
Trade Australian, US and Asian stocks with no minimum deposit on Tiger Broker’s feature-packed platform.
Webull
US$0.25
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Yes
Sign up & deposit $200 to get $100 of rewards value, or deposit $1,000 to get $200 worth. Up to $5,450 value available. T&Cs apply.
Trade ASX and US stocks and US options, plus gain access to inbuilt news platforms and educational resources. You can also start trading for less with fractional shares.
Saxo Invested
US$1
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Yes
Access 22,000+ stocks on 50+ exchanges worldwide
Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.
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Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

Bottom line

Palladium plays an important role in the automotive industry as a key component of catalytic converters. But its value could be at risk if a substitute metal were found to take its place.

Before you purchase palladium, review your trading platform options to find the brokerage account in Australia that can help you meet your investment goals.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.

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