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    Palladium in the IRA - anyone still holding or looking at it?

    M
    mark_adams👑Elite (1m-5m)
    about 2 months ago
    Key Takeaways
    • Curious if anyone here is still holding palladium in their IRA, or thinking about adding it with how things have been moving.
    • I got into a decent chunk of palladium a few years back, maybe 3-4% of my total metals allocation in my self-directed IRA.
    • This was back when it was really making a run and felt like a no-brainer to diversify a bit from the pure gold/silver plays I usually stick with.
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    Curious if anyone here is still holding palladium in their IRA, or thinking about adding it with how things have been moving. I got into a decent chunk of palladium a few years back, maybe 3-4% of my total metals allocation in my self-directed IRA. This was back when it was really making a run and felt like a no-brainer to diversify a bit from the pure gold/silver plays I usually stick with.

    My thinking at the time was pretty straightforward: automotive industry demand wasn't going anywhere, and supply constraints from Russia and South Africa felt like they'd keep a floor under it. For someone like me who's used to parsing commodity cycles in the markets here in Greenwich, it seemed like a solid, albeit smaller, bet. Now, seeing the slump, especially compared to gold's steady climb, I'm starting to re-evaluate.

    Did anyone else get caught in that run-up, or even add more recently? I'm sitting on a decent paper loss on that segment, probably around 20-25% from my entry point, which isn't ideal for something meant to be a long-term hedge. My overall metals position is healthy, thankfully, with gold making up the bulk and still performing, but the palladium is a bit of a sore spot.

    I'm torn between holding for a potential rebound – maybe electrification isn't going to kill catalytic converters as fast as some predict, or other industrial uses will pick up – versus cutting losses and reallocating into more physical gold or even some platinum. What's the general sentiment here on palladium's future in an IRA context over the next 5-10 years? Am I just being impatient, or is this a good opportunity to admit a misstep and move on? Would love to hear some other perspectives.

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    7 comments

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    Best Answer▲ 10 upvotes
    L
    linda_taylor📊Growing (50-100k)

    Interesting timing on this post! For anyone looking to understand the full scope of potential risks and rewards with palladium (or any precious metal) in an IRA, it's always a good idea to consult with a financial advisor who specializes in precious metals IRAs. They can offer tailored advice based on your individual financial situation and risk tolerance, which is super important given how volatile these markets can be. Just a thought to make sure all your bases are covered!

    Comments (7)

    2
    patricia_miller📊Growing (50-100k)✓ Verifiedabout 2 months ago

    Oh man, I totally get where you're coming from. I did something similar a few years ago – not IRA, just in my general metals portfolio. Got in on a decent chunk of palladium when it was flying high, thinking it was the next big thing. It's definitely been a bit of a rollercoaster since then, hasn't it?

    I'm still holding onto a good portion of it, mainly because I still believe in its industrial future, but it's certainly been a test of patience! Good luck with your allocation decisions!

    6
    joseph_harris📊Growing (50-100k)about 2 months ago

    Interesting! You mentioned palladium was making a run when you bought in. What was your initial thought process or key indicators that pushed you towards it specifically, rather than just more gold or silver at that time?

    7
    charles_lewis💎Premium (500k-1m)Real Investorabout 2 months ago

    Honestly, with how volatile palladium has been, I'm personally a bit wary. I know some folks swear by it for diversification, but after that massive run-up and subsequent drop, it feels like a bigger gamble than I'm comfortable with for my IRA. I'm sticking to the more 'boring' gold and silver for long-term stability in that account, even if it means missing out on potential short-term gains elsewhere.

    10
    linda_taylor📊Growing (50-100k)✓ Verifiedabout 2 months ago

    Interesting timing on this post! For anyone looking to understand the full scope of potential risks and rewards with palladium (or any precious metal) in an IRA, it's always a good idea to consult with a financial advisor who specializes in precious metals IRAs. They can offer tailored advice based on your individual financial situation and risk tolerance, which is super important given how volatile these markets can be. Just a thought to make sure all your bases are covered!

    7
    linda_taylor📊Growing (50-100k)✓ Verifiedabout 2 months ago

    Yeah, I'm with you on this. I dipped my toes into palladium for my IRA back when it was flying too, around 2020/2021. Had about 5% of my metals in it. It definitely felt like a calculated risk at the time, but the run-up was hard to ignore.

    I've held onto it since. Haven't added more, but haven't sold either. The volatility is real, but it still feels like a good diversification play within the precious metals basket, especially with the industrial demand side.

    2
    kenneth_parker💎Premium (500k-1m)Real Investor✓ Verified24 days ago

    I keep going back and forth between gold and silver allocations. The gold-to-silver ratio right now is making silver look attractive.

    2
    betty_king📊Growing (50-100k)24 days ago

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