Palladium IRA storage fees got me thinking - anyone else

Ronald Morris

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Palladium IRA storage fees got me thinking - anyone else

ronald_morris👑Elite (1m-5m)

about 2 months ago

Key Takeaways

•The storage fees for Palladium are making me pause though.
•I understand it's part of the deal, but I'm trying to get a clear picture of what's considered reasonable.
•I'm seeing quotes ranging from 0.08% to sometimes reaching 0.15% annually of the asset value for segregated storage.

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I've been kicking the tires on adding some Palladium to my IRA, specifically looking at a move from my traditional brokerage into a self-directed Gold IRA that would hold Palladium. The whole tax-advantaged growth thing for precious metals is a no-brainer for me, especially with the market volatility we've seen since my retirement from the Navy. My current portfolio is sitting comfortably between $2M and $3M, mostly in a diversified mix of equities and bonds, but I've been wanting to increase my allocation to physical assets for a while now. The storage fees for Palladium are making me pause though. I understand it's part of the deal, but I'm trying to get a clear picture of what's considered reasonable.

My existing Gold IRA, which holds a decent chunk of physical gold and some silver, has fairly transparent fees, but Palladium seems to have a bit more variability. I'm seeing quotes ranging from 0.08% to sometimes reaching 0.15% annually of the asset value for segregated storage. For context, if I'm looking to put, say, $200k into Palladium, that's anywhere from $160 to $300 a year just for storage. It's not a dealbreaker, but it makes me wonder how much of that long-term appreciation gets eaten up, especially if we see another decade of modest gains. Anyone here dealing with similar numbers for their Palladium IRA? What's your experience been with different custodians for Palladium specifically?

It also brought up a broader point about long-term returns. While I appreciate the stability and hedge against inflation that precious metals offer, I'm always doing my due diligence. I found a neat little tool recently, the Gold vs Stocks Comparison, and it's been pretty eye-opening to look at the last 10 years. Even with the storage fees, the performance of precious metals, particularly gold, has held its own and often outpaced certain market segments during downturns. I'm particularly interested in hearing from folks who have actively managed a Palladium IRA for a while. What are your post-fee net returns looking like? And for my fellow retirees in Virginia Beach, any local insights on custodians or dealers that offer competitive rates for Palladium storage?

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4 comments

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Best Answer▲ 9 upvotes

jennifer_martinez💰Established (100-250k)

Hey, I hear you on the storage fees. They can definitely add up, especially with palladium. One thing that helped me when I was looking into precious metals in my IRA was really digging into the fee structures of different custodians. Some have tiered fees, others flat rates, and a few even have discounts for larger holdings. It's not always obvious from their front-page info.

You might want to check out a site like Investopedia's Gold IRA reviews. They often break down fee structures pretty well for various providers, which can save you a ton of time comparing apples to oranges. Good luck with your research!

Comments (4)

steven_mitchell🏆Advanced (250-500k)Real Investor✓ Verified•about 2 months ago

Yeah, I feel you on the storage fees. I actually went through a similar thought process a few years back with silver. I was looking at a sizeable chunk for my IRA, and when I crunched the numbers on storage vs. the potential gains and the capital gains tax savings, it just didn't quite add up *for me* at that specific time. Ended up just sticking with a diversified stock portfolio for that portion instead. Still keep an eye on precious metals, though!

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

Interesting thought process, OP. When you say "traditional brokerage," are we talking about holding equity ETFs that track precious metals, or are you actually holding physical metal through them, perhaps in some kind of vaulted arrangement? Just curious about the current setup you're comparing against.

mark_adams👑Elite (1m-5m)Real Investor•about 2 months ago

Totally get the appeal of tax-advantaged growth for metals, but honestly, "no-brainer" feels a bit strong, especially when you factor in those storage fees you mentioned. For stocks, you're paying a practically non-existent expense ratio on an ETF, or zero for direct stock holdings with most brokers. With physical metals, even in an IRA, those fees can eat into your gains way more than people anticipate. Have you actually run the numbers on how much of your potential upside those fees gobble up over 10-20 years compared to an equivalent stock or ETF investment?