Platinum vs. Gold in an IRA: Is it time to diversify?

Michelle Collins

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Platinum vs. Gold in an IRA: Is it time to diversify?

michelle_collins🏆Advanced (250-500k)

about 1 month ago

Key Takeaways

•Been thinking a lot lately about platinum, especially as my gold stack in the IRA grows.
•Historically, platinum has often traded at a premium to gold, right?
•But for the last few years, it’s been significantly undervalued by that metric.

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Been thinking a lot lately about platinum, especially as my gold stack in the IRA grows. I’m up to about $350k in my Gold IRA now, mainly Krugerrands and Canadian Maples, which has done wonders for my peace of mind given all the economic turbulence. My research background (I teach a few economic history courses at VCU here in Richmond) means I’m constantly looking at long-term trends and historical valuations, and something about platinum has been nagging at me.

Historically, platinum has often traded at a premium to gold, right? But for the last few years, it’s been significantly undervalued by that metric. I’m seeing articles and analysis popping up suggesting that the industrial demand, especially from auto catalysts and the burgeoning hydrogen economy, could really pick up. On the supply side, we've got the geopolitical risks in South Africa and Russia, which are the main producers. This feels like a classic supply-demand squeeze waiting to happen, or at least a significant re-evaluation.

My question is, for those of you who have diversified into platinum within your precious metals IRA, what are your thoughts? Are you specifically holding platinum American Eagles or still going with bars? I'm not looking to dump my gold by any means – it’s the bedrock of my retirement plan – but I'm wondering if allocating, say, 10-15% of my new contributions to platinum for the next year or two might be a smart move. My current Gold IRA custodian offers platinum, so the logistics aren't an issue.

Is anyone else seeing platinum as a potentially undervalued asset right now, especially when looking at the gold-to-platinum ratio? Or am I just over-analyzing everything, as academics are prone to do? Would love to hear some real-world perspectives on this rather than just theoretical models.

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5 comments

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Best Answer▲ 10 upvotes

barbara_white🏆Advanced (250-500k)

Totally agree with your thinking here! I've been eyeing platinum myself for similar reasons. My IRA is sitting around $280k in mostly Eagles and Buffalos, and while gold has been solid, the platinum-to-gold ratio right now just feels like a screaming opportunity for diversification. Feels like a good time to grab some while it's still relatively undervalued.

Comments (5)

james_wilson👑Elite (1m-5m)Real Investor✓ Verified•about 1 month ago

Totally get where you're coming from. My gold IRA also hit a pretty significant chunk of my retirement, and I started wondering if I was *too* concentrated. I ended up adding a small percentage of silver, not a huge amount, but it just felt like a good hedge. Thinking about platinum too, but haven't pulled the trigger yet.

andrew_roberts👑Elite (1m-5m)Real Investor✓ Verified•about 1 month ago

That's a solid chunk of change in gold! Sounds like you've done your homework. Out of curiosity, what historical economic periods are you finding most relevant to your current thinking about platinum? Are there specific historical precedents that are making you consider diversifying into it?

sandra_green📊Growing (50-100k)✓ Verified•about 1 month ago

That's a solid chunk of change in gold, no doubt! And I totally get the peace of mind aspect. Gold's been the OG safe haven for a reason.

However, while platinum has its industrial uses and can be more volatile, which some see as opportunity, I'd also consider silver before platinum for diversification within precious metals. It's got similar safe-haven properties to gold but with greater industrial demand and a much lower price point, potentially offering more upside leverage if things get really wild. Just something to chew on!

ronald_morris👑Elite (1m-5m)Real Investor•about 1 month ago

Hey, that's a great question about platinum! Diversifying beyond just gold is definitely something to consider, especially if you're looking at different market dynamics. One thing I'd recommend looking into is the industrial demand for platinum vs. gold. Platinum often has a stronger industrial component, which can make its price movements a bit different than gold's safe-haven appeal.

You might find some good insights on the World Platinum Investment Council's website (platinuminvestment.com). They often publish detailed reports on supply, demand, and market outlooks. Could be a good resource to help you decide if it fits your portfolio goals!