Palladium is generally expected to maintain elevated price levels or potentially rise in 2026, building on a strong 2025 performance, with forecasts suggesting a 2026 average price between $1,262 and $1,740+ per ounce. Supply deficits driven by potential Canadian mine closures, South African production constraints, and persistent investment demand are supporting this outlook.
Should You Own Palladium? Palladium may be a worthwhile addition to your precious metal holdings, but it depends on your investment goals. Some people build entire precious metals portfolios without any exposure to palladium, while others find it a valuable inclusion.
BullionVault's palladium forecast reports that its user survey indicates a December 2026 price expectation of around $1,689 per ounce. This compares with an LBMA analysts' 2025 average of $991 and a December 2025 LBMA average of $1,586.
In 2025, the palladium price soared by more than 83 percent as of mid-December on supportive demand signals from slowing electric vehicle (EV) adoption trends and concerns about Russian supply reliability. The price of the metal reached a year-to-date high of US$1,675.50 per ounce on December 17.
With the market's impressive supply and demand fundamentals, and growing prospects for a potential supply squeeze in the years ahead, an investment in palladium bullion may be one of the best bets now and in the future.
Supply Constraints Add to Bullish Outlook
Russian mining powerhouse Nornickel, responsible for the bulk of global palladium production, expects a 200,000-ounce deficit in 2025 when including investment demand. For 2026, the company projects a 100,000-ounce shortfall, excluding investments.
The automotive sector is the primary end user of palladium. The metal is a key component in the catalytic convertors of internal combustion engine vehicles, where it is used to reduce emissions. Like platinum, palladium is used in jewelry and valued as an investment.
In many industries, palladium is thought of as a substitute for platinum because of its greater abundance. Although the actual amount of available palladium is unclear, palladium is historically a greater bargain when buying for industrial purposes, as it has previously sold for nearly half as much as platinum.
Palladium has one notable characteristic working in its favor compared to other precious metals. It's much rarer than gold or silver, which can potentially drive up the price through imbalances in supply and demand. The downside, however, is that palladium prices tend to be more volatile than gold or silver prices.
While much attention has focused on battery minerals like lithium and cobalt for electric vehicles, the AI boom depends critically on lesser-known elements — particularly gallium, germanium, indium, palladium, and tantalum — that enable the high-performance chips at the heart of every GPU and data center.
Yes, it's completely legal for U.S. citizens to own a 400 oz gold bar, as there are no federal limits on how much gold bullion an individual can possess, a restriction that was lifted in 1974. You can buy, hold, and store them at home, but be aware of potential tax implications (capital gains) when selling for a profit and reporting requirements for large transactions (over $10,000) for anti-money laundering purposes.
After hitting a seven-year low at $31.74 per gram at the start of 2025, palladium staged a sharp recovery and gained 74.48% over 2025. Even with this rebound, prices today remain well below the highs seen in 2021, suggesting that the metal still has room to move higher as the market normalises.
A major source of health concern is the sensitization risk of Pd as very low doses are sufficient to cause allergic reactions in susceptible individuals. Persons with known nickel allergy may be especially susceptible. Workers occupationally exposed to Pd include miners, dental technicians and chemical workers.
China is the world's largest consumer of platinum group metals, but is highly dependent on imports, exposing domestic companies to risks from international price swings and supply chain insecurity. Imports of platinum and palladium reached 91.1 tons last year, accounting for 71 percent of the country's total supply.
On Friday, January 9, the bank's analysts lifted the 2026 platinum forecast to $2,450 an ounce from $1,825, and the palladium forecast to $1,725 an ounce from $1,525.
Cons: Palladium is actually much more expensive than platinum weight for weight but due to the lower density less is required to produce the same item of jewellery; therefore a palladium wedding band or ring mount traditionally would cost less than its platinum counterpart.