When choosing precious metals for an IRA investment, many investors automatically assume gold is the go-to. Still, there are three other viable options in silver, platinum, and palladium, each offering its own benefits. Each is a tangible asset worthy of standing the test of time, not to mention the turbulence of the economy. Go here for things to know before investing in a metal.
Most investors choose one to balance their retirement holdings, so there is no sole focus on paper, such as stocks. These correlate stringently with the market, meaning the client will generally see a substantial loss when there’s a downward spiral.
A hedge in the portfolio, like the physical commodity, will take a bit of the sting from the savings hit. The suggestion is typically in the past when the market sees loss, gold and other metals see growth.
The liquid asset is a lucrative commodity tradable quite readily on the market, particularly in coin form. Still, there are only specific coins that are eligible for use in self-directed accounts. Investors can also choose larger quantities of metals or bars for longer-term goals.
What Is A Platinum IRA
A platinum individual retirement account is a self-directed account that carries coins and bars of platinum. Few investors are aware that this metal can be used in the same capacity as silver or gold for an IRA. According to the 1997 “Taxpayer Relief Act,” they need to present a specific fineness for the precious metal to be added to a self-directed IRA.
In the case of platinum, the minimum fineness for eligibility needs to be at or above .9995. A COMEX or NYMEX-approved refiner/assayer must manufacture bars or come by the national government mint. Among the popular items included for these self-directed accounts are the PAMP Suisse Platinum bars and the American Platinum Eagle coin.
Platinum IRA-Approved Options
Among the most favored products with this precious metal is bullion coins (check https://www.metal-res.com/gold-ira/american-eagle-platinum-coins/ for details on the American Eagle Platinum coin) for funding self-directed accounts since a sovereign government issues and backs these. What that means to the public is the coins will hold face value, and the country that issues them will use them as legal tender.
Platinum bars are also sought from private mints with notable manufacturers like Valcambi Suisse and PAMP Suisse. The following are the favored choices among the bullion products that investors select for funding self-directed IRAs:
Coins
- American Eagle Platinum
- Platinum Britannia
- Australian Kangaroo
- Canadian Maple Leaf
Bars
- Valcambi Suisse
- PAMP Suisse
Why Invest In A Platinum IRA
The suggestion is that platinum is significantly rarer than gold which might be why investors tend to overlook the metal when diversifying their retirement portfolios in favor of the popular and visible gold and silver.
The precious metal has numerous industrial purposes, particularly with automobiles, for which manufacturers use it to produce catalytic converters for gas-powered vehicles to decrease toxic emissions into the environment.
Platinum is also widespread among the jewelry industry primarily due to its tarnish and corrosion resistance, designating it with the reference as the “noble metal.” Another advantage is its malleability allowing for ease of manipulation to shape the material.
Clients turning to platinum as an option for IRA investing find it a “sensible hard asset” worthy of conservative investment, roughly 5+ % with approval by the IRS as among the four permissible precious metals for funding self-directed accounts.
Selecting Platinum As Your Metal Of Choice
When deciding on platinum as your chosen precious metal, you need to select a custodial service to set up, administer and manage your self-directed individual retirement account.
The custodian will need to specialize in these accounts and be approved by the IRS. These professionals don’t provide investment or funding advice; instead, handling transactions and ensuring compliance with Internal Revenue Codes.
It will also be necessary to select a precious metal dealer with whom you will make the platinum purchase. You’ll want to research to find a well-established firm with valid experience in the industry and a solid following, including association with traditional agencies and review and rating with authoritative organizations.
The custodian will provide your funding to the dealer once you have decided on products. From that point, a depository for storing the metal will need to be designated, also requiring IRS approval.
The owner cannot hold precious metals until retirement age. The dealer will ship the products to the storage facility once the transaction is complete. The custodial service will manage any transactions and the account while in storage, but as the owner, you will ultimately make any decisions and have access as you wish.
Final Thought
Precious metals are the ideal investment for individuals setting up a retirement portfolio with a desire to ensure the holdings remain stable well into the future. Too often, investors focus on one class of assets, typically paper, suffering along the path of the market with its many peaks and valleys with no hedge to balance that turbulence.
More are becoming wise to diversify with a precious metal to take advantage of that hedge. Still, many have tunnel vision of metals, seeing gold as the only option when there are four primary choices that the IRS allows for a precious metal self-directed IRA investment. Each offers its own set of benefits, each viable and capable of sustaining a retirement plan.
Platinum is one being overlooked. It has many uses in varied industries creating demand, plus it’s much rarer than gold. Investors might want to take a glance.
