Palladium in the IRA - is it a wise move right now?

Michelle Collins

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Palladium in the IRA - is it a wise move right now?

michelle_collins🏆Advanced (250-500k)

about 2 months ago

Key Takeaways

•Been doing a deep dive into my portfolio lately, specifically looking at diversifying my precious metals holdings within my IRA.
•Currently, I've got a decent chunk in gold and silver, probably around $350k combined.
•On the supply side, Russia being a major producer adds another layer of geopolitical risk I'm trying to factor in.

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Been doing a deep dive into my portfolio lately, specifically looking at diversifying my precious metals holdings within my IRA. Currently, I've got a decent chunk in gold and silver, probably around $350k combined. I’m thinking about adding palladium to the mix, and honestly, the thought makes me a little nervous given its volatility, but also intrigued for the same reason. I’m a professor here in Richmond, and my research typically trends towards risk assessment, so I'm trying to apply some of that rigor to my own finances.

My initial research shows the industrial demand for palladium, especially in catalytic converters, is pretty compelling, but then there's the whole EV push potentially dampening that. On the supply side, Russia being a major producer adds another layer of geopolitical risk I'm trying to factor in. I'm torn between thinking it's a solid diversification play in the precious metals space, especially as a hedge against inflation, and worrying about getting in at the wrong time. I'm not looking to move mountains, maybe a 5-10% allocation of my precious metals, which would be in the realm of $15k-$30k.

Anyone here have direct experience with palladium in their IRA? What's your take on its performance over the last few years? I'm particularly interested in hearing from folks who've held it through the ups and downs. Did you find the storage costs and premiums comparable to gold/silver, or is there anything specific I should be aware of on that front? Any red flags I might be overlooking from a long-term perspective?

I feel like I've read every Bloomberg and Kitco analysis available, but sometimes the real-world experiences from this community are far more valuable than another econometric model. Would love to hear some diverse opinions on whether it's truly worth it for a long-term hold in a retirement account.

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6 comments

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Best Answer▲ 16 upvotes

elizabeth_johnson💰Established (100-250k)

Palladium’s wild ride this past year makes me super wary for IRA inclusion. I dumped my small palladium allocation back in April after it dipped hard – just too volatile for something I want holding long-term value in a retirement account. Stick with gold and silver; the premium on palladium feels like a trap right now.

Comments (6)

frank_rivera💎Premium (500k-1m)Real Investor•about 2 months ago

Dude, I was in a similar boat like six months ago! Had my gold and silver, felt good about it, but then palladium kept popping up. Ended up putting a small percentage in, probably around 5% of my overall metals. So far, no regrets. It's not the superstar performer everyone raves about, but it's been a steady eddy and adds a nice little extra layer of diversification to the "oh crap" plan. Definitely worth looking into the historical performance and your own risk tolerance.

susan_clark💰Established (100-250k)Real Investor•about 2 months ago

Interesting thought! Diversifying beyond just gold and silver makes sense. You mentioned a "decent chunk" in gold and silver, but I'm curious, what's the approximate percentage breakdown between those two currently?

carol_carter💰Established (100-250k)Real Investor•about 2 months ago

It's interesting you're looking at palladium right now. While diversification is always a good idea, palladium has had a pretty wild ride lately, and its industrial demand is heavily tied to the auto industry, which is seeing a big shift towards EVs. With your existing gold and silver, you've already got a solid base of monetary metals.

I'd personally consider if the current volatility and future demand uncertainties of palladium make it the *wisest* addition compared to perhaps bolstering your gold/silver position further or exploring other less volatile options. Just something to chew on when making such a significant move.

donald_nelson💎Premium (500k-1m)Real Investor✓ Verified•about 2 months ago

I've diversified into palladium before, but these days I'm really scrutinizing the industrial demand side before making any big moves. With so much uncertainty in the auto sector, especially with the EV transition, it feels like a higher risk play than usual right now for me personally. I'm focusing my *new* IRA contributions more on gold and silver, given the current macro environment.

patricia_miller📊Growing (50-100k)✓ Verified•about 2 months ago

Honestly, palladium is a tricky one right now. I've got a decent chunk in gold, maybe 80k or so, and I've dabbled in platinum but palladium feels like it's at a crossroads. The EV push could seriously crater demand long-term, even with industrial uses. I’m staying out until there's clearer market direction. I don't see the same stability as gold.