Palladium in the IRA - is it a hedge or just FOMO?
- •Been seeing more and more chatter about palladium, especially with the spot price bouncing around lately.
- •I've been exclusively a gold and silver guy for my precious metals allocations, both in and out of my IRA.
- •We're talking a substantial chunk of my 5M+ portfolio here, primarily in physical holdings and some specific mining ETFs outside the IRA.
Been seeing more and more chatter about palladium, especially with the spot price bouncing around lately. I've been exclusively a gold and silver guy for my precious metals allocations, both in and out of my IRA. We're talking a substantial chunk of my 5M+ portfolio here, primarily in physical holdings and some specific mining ETFs outside the IRA. For the IRA, it's all physical gold and silver, mostly Eagles and Maples. Based out of Scottsdale, running my own business, so I'm always looking at diversification strategies, especially when there’s global uncertainty.
My concern with palladium is, well, it's not gold. Gold has that thousands-of-years history as a store of value. Palladium's more industrial, right? Catalytic converters, dentistry, some electronics. While demand from those sectors is consistent, it feels a lot more susceptible to market swings based on manufacturing outputs and technological shifts. The supply side is also concentrated in Russia and South Africa, which adds another layer of geopolitical risk that I'm already trying to navigate away from with my existing PMs holdings. Is this just me getting FOMO from seeing its price spike and drop, or is there a genuine long-term play here for an IRA?
I'm wrestling with whether to allocate even a small percentage – say, 5-10% of my precious metals IRA – into palladium. The idea of further diversifying within my precious metals segment is appealing, but not if it introduces more volatility than it mitigates. For those of you who have taken the plunge with palladium in your IRA, what's been your experience? Are you seeing it act as a true diversifier and hedge, or is it more speculative in your opinion? What kind of percentages are we talking about for your allocations?