Investing in precious metals like platinum can be a great way to diversify your portfolio and protect your assets. Platinum, in particular, has been gaining popularity among investors as an alternative to gold and silver. In this guide, we will cover everything you need to know about investing in platinum for your IRA.

Why choose platinum over gold and silver?

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Rarity

Platinum is one of the rarest precious metals, with annual mine production around 7 million ounces, compared to over 100 million ounces for gold and silver. This rarity can make platinum more valuable and potentially more resistant to market fluctuations.

Industrial Demand

Unlike gold and silver, which are primarily used for jewelry and investment purposes, platinum has significant industrial uses. Approximately 40% of platinum demand comes from the automotive industry for use in catalytic converters, while other industries use platinum for electronics, medical devices, and chemical processing. This industrial demand can provide additional stability for platinum prices.

Pros of IRA Approved Platinum Investing

Pros

  •  Portfolio Diversification Adding platinum to your IRA can provide diversification benefits, as it is not directly correlated to the stock market or other traditional assets.
  •  Potential Hedge against Inflation Precious metals, including platinum, have historically been seen as a hedge against inflation, as their value can increase when inflation rises.
  •  IRA Tax Benefits  Investing in platinum through your IRA can provide tax benefits, such as deferring taxes on any gains until retirement when you withdraw funds.

Cons

  •  Volatility While platinum can provide diversification and hedge against inflation, it can also be highly volatile, with price swings that can be difficult to predict.
  •  Platinum is not as widely traded as gold and silver, and may not be as easy to sell in times of market stress.

Who approves platinum for an IRA?

The Internal Revenue Service (IRS) sets the guidelines for IRA investments, including those in precious metals. Platinum coins and bars that meet certain criteria can be added to your IRA, provided they are approved by the IRS. The platinum must have a fineness of at least 0.995, and be produced by a reputable mint or refinery.

Purity of Platinum

The purity of platinum is measured in parts per thousand, with 999 being the highest level of purity. Platinum bars and coins that are approved for IRAs typically have a fineness of at least 0.995, or 995 parts per thousand pure platinum.

Companies that deal and sell platinum in the USA

There are several reputable companies in the United States that deal in platinum coins and bars that are approved for IRAs. Some of these companies include:

  • American Bullion
  • Blanchard & Company
  • Lear Capital
  • Monex Precious Metals
    Rosland Capital

When choosing a company to purchase platinum for your IRA, it is important to do your research and select a company that has a good reputation, offers competitive pricing, and provides excellent customer service.

Final Thoughts

Investing in platinum for your IRA can be a smart way to diversify your portfolio and protect your assets. However, it is important to consider the pros and cons of investing in platinum, as well as the criteria for IRA-approved platinum, before making any investment decisions. By doing your research and working with a reputable dealer, you can add platinum to your IRA with confidence.

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