Buying palladium: what it’s used for, how the price behaves and how to own it

Palladium at a glance

World mine output, 2025	About 190 metric tons
Largest producers	Russia (about 44%) and South Africa (about 37%)
Biggest use	Gasoline-car exhaust catalysts, roughly 80% of demand
Record price	$3,440.76 an ounce, March 7, 2022
IRA purity standard	99.95%

What palladium is used for

Most palladium ends up in catalytic converters, where it helps turn carbon monoxide, unburned fuel and nitrogen oxides in exhaust into less harmful gases. Gasoline cars and hybrids need it; battery electric cars have no exhaust and don’t. Johnson Matthey’s 2026 market report puts 2025 automotive demand at about 8.2 million ounces out of total demand of about 10.1 million. Most of the rest goes into electronics, chemical processes and dentistry.

Where it comes from

The U.S. Geological Survey estimates that mines produced about 190 metric tons of palladium in 2025: about 84 tons in Russia, 70 in South Africa, and smaller amounts in Canada, Zimbabwe and the U.S. Recycling from scrapped catalysts adds a large share of supply on top of that.

Russia’s role makes palladium sensitive to politics. Fears that sanctions would cut Russian shipments drove the price to its record in March 2022. In 2026, the U.S. Commerce Department found that Russian palladium had been sold in the U.S. below fair value, but on May 29, 2026 the U.S. International Trade Commission ruled that American producers hadn’t been injured, so no duties were imposed.

How the price has behaved

Palladium is a small market that depends on one industry, and its price shows it. After the March 2022 record of $3,440.76, it slid for years. In 2026 it started January near $1,692, jumped to about $2,196 on January 26, then fell to a nine-month low of about $1,177 in June.

The outlook is mixed. In its May 2026 report, Johnson Matthey forecast that palladium demand would fall 9% in 2026, mainly because fewer gasoline cars are being built and investors sold fund holdings early in the year. On the supply side, it expected Russian mine output to drop to its lowest level in at least two decades, while recycling of old catalytic converters recovers strongly. Taken together, it said the market could move into a small surplus after years of deficits. Those figures are projections made in May.

Ways to buy palladium

• American Palladium Eagle. Made by the U.S. Mint since 2017: one troy ounce of 99.95% palladium with a $25 face value. Both sides reuse designs by Adolph Weinman, including the winged Liberty from the 1916 “Mercury” dime.
• Other coins. Some other mints, including the Royal Canadian Mint, have made palladium bullion coins.
• Bars. Refiners make palladium bars, commonly 1 oz and 10 oz.
• Funds. Exchange-traded funds that hold palladium bullion track the price without storage, though you own fund shares, not metal.

Costs and selling

Palladium trades in even smaller volumes than platinum. Premiums over spot tend to be higher than for gold, dealers’ buy-sell spreads are wider, and fewer dealers deal in it at all. Get several quotes, and check what a dealer would pay you before you buy. Gains are taxed as gains on collectibles, at up to 28% for metal held more than a year.

Palladium in an IRA

An IRA can hold palladium bullion that’s at least 99.95% pure, the standard for delivery on regulated palladium futures, and the Palladium Eagle meets it. The IRA’s trustee or custodian has to hold the metal. See the gold IRA guide for how these accounts work.

Should you buy palladium?

Buyers point to Russia’s supply risk, falling mine output and the number of hybrid cars still being built. Skeptics point to electric cars, rising recycling and a market that may be moving into surplus. What both sides agree on is that the price depends heavily on the car industry. If you buy palladium, treat it as a speculative position and keep it small. For comparison, see our guides to platinum and gold coins.

Frequently asked questions