By the Silver Gold Today Editorial Team. Reviewed through our editorial process. This article is general education. It is not financial advice and not licensed financial advice. Silver Gold Today may earn a commission from some links on the site; see our affiliate disclaimer.
Gold and silver are the metals most retail buyers start with, but platinum and palladium are also sold as bullion. This guide to platinum and palladium basics covers how the two metals are quoted, which official sources describe them, and a step-by-step method for comparing offers before buying either. It does not forecast prices, describe market conditions, or recommend either metal.
Key points
- Platinum and palladium are quoted per troy ounce, the same unit used for gold and silver.
- The LBMA publishes information on benchmark prices for both metals.
- Offers can be compared using the same melt-value method used for gold and silver.
- Before buying, ask each dealer whether it stocks the product and will quote a buyback price.
Platinum and palladium basics: how they are quoted
Both metals are quoted per troy ounce. One troy ounce is defined by NIST as 31.1034768 grams. Our guide to the troy ounce vs ounce explains why this unit differs from the ordinary ounce.
Two kinds of reference price exist for each metal. The LBMA precious metal prices page provides information on benchmark prices for platinum and palladium as well as gold and silver. Live quotes appear on market data sites such as Kitco. Our guide to the LBMA gold price explains how benchmarks and live quotes differ; the same distinction applies to these metals.
Comparing offers: the melt-value method
The premium on any bullion product is the difference between its asking price and the value of its metal at a reference price. Our guide to spot price vs premium sets out the method in full. Applied to platinum or palladium, it runs as follows:
- Find the product’s stated fine metal content in troy ounces.
- Note a live reference price and the time you checked it.
- Multiply the two to get melt value.
- Subtract melt value from the asking price to find the premium, then express it as a percentage of melt value.
Comparing premiums as percentages, rather than comparing sticker prices, puts offers for different products and dealers on the same footing.
Product formats
Platinum and palladium bullion is sold as coins and bars. Some government mints issue bullion products in these metals; the United States Mint, for example, publishes specifications for its own products. Before buying any coin or bar, we suggest confirming its fine metal content, weight, and dimensions with the issuing mint or refiner.
The general trade-offs between bars and coins are covered in our guides to gold bars vs gold coins and silver bars vs silver coins. The same questions apply here: cost per ounce, divisibility when selling, and how easily a product can be verified.
Checks to run before buying
Rather than assume how any dealer handles these metals, we suggest asking directly. The answers vary by dealer and product, and they determine the real cost of owning the metal.
| Question for the dealer | Why it matters |
|---|---|
| Do you stock this specific product? | Confirms the product is available from that dealer. |
| What is the premium over the reference price? | Lets you compare offers on a like-for-like basis. |
| What would you pay to buy it back today? | The gap between buy and sell prices is your round-trip cost. |
| How long is a buyback quote valid? | Tells you how long an offer can be relied on. |
| Can you test the product if I sell it back? | Confirms the dealer can verify and repurchase it. |
Collecting these answers from at least two or three dealers gives a clear picture of how a product is priced and how easily it could be sold. Ask for the answers in writing, so they can be compared side by side later. Our guide on how to choose a bullion dealer covers dealer checks in more detail.
A simple comparison worksheet
We suggest recording each offer in a simple table before making any decision. Use one row per dealer and product, and fill in the same columns for each:
| Column | What to record |
|---|---|
| Dealer and product | Name of the seller and the exact product description |
| Fine metal content | Troy ounces of platinum or palladium, from the issuer’s specification |
| Asking price | Total price including shipping and payment fees |
| Reference price and time | The live quote you used, and when you checked it |
| Premium (%) | Calculated using the melt-value method above |
| Buyback quote | The dealer’s stated buyback price and how long it is valid |
Filling in every column for every offer makes gaps obvious. An offer with no buyback quote, or a product whose specification you cannot confirm, stands out immediately. Keep the completed worksheet with your purchase records.
Verification and storage
Platinum and palladium products are verified using the same approach as other bullion: compare weight, dimensions, and design against the issuer’s published specifications, and buy from established dealers. Our guides to spotting fake gold and silver coins and assay cards and certificates describe the methods.
Storage options are the same as for gold and silver: home, bank box, or a private depository. Our guide on how to store gold and silver compares them and lists the questions to ask any depository. If you are considering holding these metals in a retirement account, our guide to gold and silver IRAs covers the framework; confirm product eligibility with your custodian.
Evaluation checklist
- Confirm the dealer stocks and will buy back the specific product.
- Confirm the product’s specifications with the issuing mint or refiner.
- Calculate cost per troy ounce of fine metal, including all fees.
- Compare against a live reference price noted at the same time.
- Request the buyback price and how long it is valid.
- Record each offer in the comparison worksheet.
- Plan storage and insurance before the metal arrives.
Frequently asked questions
Are platinum and palladium quoted the same way as gold?
Yes. Both are quoted per troy ounce, and the LBMA publishes information on benchmark prices for both.
Can I compare offers the same way as for gold?
Yes. Use the melt-value method: fine metal content times a live reference price, then compare each asking price against that figure.
How do I know whether a dealer can buy my product back?
Ask before you buy. Request the current buyback price and confirm the dealer can test the product.
Where do I find a product’s specifications?
From the issuing mint or refiner. The United States Mint, for example, publishes specifications for its own products.
Methodology and sources
Unit definitions use NIST. Benchmark information references the LBMA. Product specifications should be confirmed with issuing mints such as the United States Mint. This article describes a comparison method and buyer checks only; it makes no claims about market size, demand, premiums for specific products, or price direction, and it contains no price data.
The bottom line
These platinum and palladium basics come down to applying the same method used for gold and silver: work from fine metal content, compare premiums against a live reference price, confirm specifications with the issuer, and ask each dealer whether it stocks and will buy back the product. This is not financial advice.