Palladium Coins and Bars
Palladium bullion comes mainly in two coin programs, the American Palladium Eagle (first issued for bullion buyers in 2017) and the Canadian Palladium Maple Leaf, plus bars from private refiners. Retirement-account rules require .9995 fineness. Palladium is the smallest and least liquid of the four main precious metals markets, so product choice and dealer spreads matter more than usual.
A Quick Profile of Palladium
Palladium is a silvery-white platinum group metal. Its biggest use by far is in catalytic converters for gasoline vehicles, where it helps convert harmful exhaust gases into less harmful ones. It is also used in electronics, dentistry and chemical processes. U.S. Geological Survey data show that mine output is highly concentrated, with Russia and South Africa together accounting for most of world production, and a meaningful share coming as a by-product of nickel and platinum mining.
That combination, a narrow industrial demand base and a concentrated supply, helps explain why palladium has historically shown large price swings. Our page on palladium supply and demand covers those drivers in more depth.
The American Palladium Eagle
Congress authorized a palladium bullion coin in the American Eagle Palladium Bullion Coin Act of 2010, and the U.S. Mint released the first one-ounce bullion Palladium Eagle in 2017. Key details:
- Content: one troy ounce of .9995 fine palladium.
- Face value: a nominal 25 dollars.
- Design: the obverse adapts Adolph A. Weinman's Winged Liberty design, best known from the "Mercury" dime, and the reverse adapts his 1907 American Institute of Architects gold medal design featuring an eagle.
- Versions: the Mint has also released proof, reverse proof and uncirculated collector versions in various years.
Bullion Palladium Eagles have not been struck every year, so supply in the secondary market can be uneven. That can push premiums higher than on more plentiful coins.
The Canadian Palladium Maple Leaf
The Royal Canadian Mint has issued a one-ounce Palladium Maple Leaf at .9995 fineness. Like its platinum counterpart, it has appeared in some years and not others. When available, it is one of the most recognizable palladium coins in the world.
A small number of other mints have issued palladium coins over the years, but these are generally low-volume or collector-oriented products. If you are buying palladium mainly for its metal content, widely traded coins and bars tend to be easier to sell later.
Palladium Bars
For buyers focused on metal content, bars are often the most cost-efficient way to own palladium. Private refiners produce palladium bars in one-ounce, ten-ounce and gram sizes. A minted one-ounce bar usually comes sealed in an assay card showing weight, fineness and a serial number.
When evaluating a bar, look for a recognized refiner, .9995 or 999.5 stamped on the bar, and intact packaging. Resale is generally smoother when a bar comes from a refiner the wholesale market recognizes. Our guide to mints and refiners explains why the maker's name carries weight with dealers.
Palladium and the .9995 Rule
Under 26 U.S.C. 408(m), an IRA may hold palladium bullion meeting the minimum fineness required for a regulated futures contract, which is .9995 for palladium. Coins and bars at that standard may qualify, but the self-directed IRA custodian and the depository make the final decision about which products they will hold. Our guides to palladium in a retirement account and IRS purity standards explain the details.
Pricing, Premiums and Liquidity
The palladium reference price is driven by the wholesale market and by palladium futures listed on CME Group's NYMEX exchange. Retail products sell at a premium above that reference. Because fewer dealers make an active two-way market in palladium, the difference between what a dealer charges and what it pays back, known as the spread, can be wider than for gold or silver.
Before buying, it helps to ask:
- What is the all-in price per ounce, including shipping and insurance?
- What would you pay me for this exact product if I sold it back today?
- Is this item in stock, or is delivery dependent on a future mint release?
- Is it eligible for a self-directed IRA with my custodian, if that matters to me?
For more on these numbers, read premiums and bid/ask spreads.
Palladium Compared With Platinum
Platinum and palladium are often discussed together, but their markets differ. Palladium demand leans more heavily on gasoline-engine catalysts, while platinum has a broader mix of uses, including diesel catalysts, jewelry and industrial processes. Their prices have at times moved in opposite directions. Our platinum coins and bars guide covers the products available on that side.
Some people include a small amount of palladium as one way to diversify a precious metals portfolio. Whether that makes sense depends on your goals and tolerance for volatility, which a licensed financial professional can help you think through.
Goldco, a precious metals company, offers palladium as well as platinum, gold and silver. Our overview of platinum and palladium at Goldco describes what it lists. Its precious metals specialists can answer product questions but are not licensed to give financial, legal or tax advice.
Frequently Asked Questions
When did the U.S. Mint start making palladium coins?
The first bullion American Palladium Eagle was released in 2017 under authority from a 2010 law.
Is palladium a good substitute for gold?
They serve different roles. Gold demand is driven heavily by central banks and private holders, while palladium is mostly an industrial metal. Many buyers treat palladium as a small supplement rather than a substitute.
Are palladium bars IRA eligible?
Bars of at least .9995 fineness may qualify, subject to your custodian's approval and storage at an approved depository.
Why are Palladium Eagle premiums sometimes high?
Bullion mintages have been limited and irregular, so the coins can be scarce in the dealer market relative to demand.