Palladium and Platinum Coins: A Guide to PGM Bullion

Gold and silver dominate the bullion coin market, but two other precious metals are also struck into coins: palladium and platinum. Both belong to the platinum group metals (PGMs), and both are mined in far smaller quantities than gold or silver. Their coin programs are smaller and less regular, which affects availability, premiums and resale. This guide covers the main palladium coins, then the principal platinum coins, and explains why buying and selling PGM coins costs more than buying gold.

Palladium as a metal

Palladium is a silvery-white metal from the platinum group, which also includes platinum, rhodium, ruthenium, iridium and osmium. It is lighter than platinum and resists corrosion well. Most of the world’s supply comes from a small number of countries, with Russia and South Africa the largest producers, so supply is concentrated and sensitive to events in those regions.

Demand is overwhelmingly industrial. The largest single use is in catalytic converters for gasoline-powered vehicles, where palladium helps convert harmful exhaust gases. Smaller amounts go into electronics, dentistry, chemical catalysts and jewelry. Investment demand, including coins and bars, is a minor part of the total. This heavy reliance on one industry is a key reason palladium has historically been more volatile than gold.

Palladium bullion coins

Only a few mints issue palladium bullion coins, and none does so on the scale of their gold programs.

• Canadian Palladium Maple Leaf. The Royal Canadian Mint first issued it in 2005: 1 troy oz of .9995 palladium with a face value of 50 Canadian dollars. It has been produced in some years but not every year. See the dedicated page on the Canadian Palladium Maple Leaf.
• American Palladium Eagle. The United States Mint launched it in 2017. It contains 1 troy oz of .9995 palladium and carries a $25 face value. Its design borrows Adolph Weinman’s “Winged Liberty” portrait, familiar from the so-called Mercury dime, together with an eagle design also by Weinman.
• Russian ballerina coins. In the late 1980s and the 1990s, the Soviet Union and then Russia struck palladium coins featuring ballet scenes, issued as part of commemorative series. They are now traded mainly as collector items, often above their metal value.
• Chinese palladium Pandas. China has issued palladium versions of its Panda coin in limited numbers. These are relatively scarce and generally priced as collectibles.

Palladium bars from recognized refiners are an alternative, usually with lower premiums but less visual appeal and sometimes less straightforward resale.

Platinum bullion coins

Platinum has a longer and broader coin history than palladium. The main issues include:

The 1 oz Platinum Eagle carries a $100 face value, and in addition to its bullion version it has been struck in proof versions with designs that change from year to year. The Platinum Maple Leaf has been produced intermittently, with gaps in some periods. The Philharmonic and Britannia platinum coins extended well-known gold and silver designs to platinum, making them easy to recognize.

Platinum is also used largely in industry, notably in catalytic converters for diesel engines, in chemical processing and in jewelry. Its price has at times been well above gold and at other times well below.

Why premiums and spreads are wider

Buyers of PGM coins usually pay more over spot, and receive less when selling, than with gold. The main reasons:

1. Smaller markets. Fewer dealers stock PGM coins, and fewer buyers compete for them on resale.
2. Irregular supply. Mintages are lower and programs stop and restart, so availability can be patchy and prices for specific years can drift away from metal value.
3. Higher volatility. Dealers widen spreads to protect themselves against sharp moves in the metal price while coins sit in inventory.
4. Taxes. In many countries, including EU member states, platinum and palladium coins do not enjoy the tax exemptions that apply to investment gold, so sales tax or VAT may apply.

Before you buy

• Compare the premium as a percentage over the metal value, not just the headline price.
• Ask for a buyback quote at the same time as the selling price; the spread shows the real round-trip cost.
• Prefer coins from the larger government programs, which are easier to resell.
• Remember that palladium and platinum prices depend heavily on the auto industry and on supply from a few countries.

For background on the more liquid metals, see the guides to gold prices and silver prices.

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