Platinum as a hedge - thoughts?

Timothy Reed

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Platinum as a hedge - thoughts?

timothy_reed💎Premium (500k-1m)

about 5 hours ago

Key Takeaways

•Been seeing a lot of chatter lately about platinum and whether it's truly undervalued right now, especially compared to gold.
•My Roth IRA is about 15% in physical gold and a bit more in gold mining stocks – about $100k all told out of my roughly $700k portfolio.
•I'm a big believer in tangible assets, learned that lesson working in dairy our whole lives.

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Been seeing a lot of chatter lately about platinum and whether it's truly undervalued right now, especially compared to gold. My Roth IRA is about 15% in physical gold and a bit more in gold mining stocks – about $100k all told out of my roughly $700k portfolio. I'm a big believer in tangible assets, learned that lesson working in dairy our whole lives. You can touch it, you can see it – that just makes sense to me.

My advisor (he’s good, but sometimes a bit too conservative for my taste) has always steered clear of platinum, saying it’s too volatile and industrial demand makes it a different beast than gold. But man, when I look at the price difference between an ounce of gold and an ounce of platinum right now, it almost feels like a no-brainer. Gold pushing $2300 and platinum somewhere around $900-$1000? That spread feels huge. Are we missing something, or is this a classic "buy low" situation?

I’m not looking to dump all my gold for platinum, no way. But I’ve been thinking of diverting some of my regular contributions, maybe $10k-$20k over the next year, into platinum for some extra diversification. I've always thought of precious metals primarily as a hedge against inflation and economic uncertainty. Does platinum still hold that same kind of hedging power, or is it more of a speculative industrial play now?

Anyone here in a similar boat, or has anyone actually pulled the trigger on a significant platinum allocation in their IRA? What’s your experience been? Is there a particular way you’re buying it – coins, bars, ETFs? Especially for those who’ve been in physical for a while, I’d love to hear your take. Just trying to figure out if this is a smart move or if the market knows something I don't.

4 comments

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Best Answer▲ 10 upvotes

helen_turner💰Established (100-250k)

Interesting thought! Platinum definitely has a unique position with its industrial demand alongside its precious metal status. When considering adding it, don't forget about the spread between buying and selling physical platinum – it can be a bit wider than gold or silver sometimes. Also, make sure the custodian you're using for your Roth IRA actually supports platinum as an eligible asset. Some are more limited than others. Always worth a double-check!

Comments (4)

dorothy_lopez💰Established (100-250k)Real Investor•less than a minute ago

Hey, I've been in a similar boat! About five years ago, I dabbled a bit in platinum for a similar reason – it felt like the overlooked precious metal. Had it as a small hedge, maybe 5% of my precious metals allocation at the time, just to diversify away from gold and silver a little.

It was an interesting ride. Definitely didn't see the same kind of gains as my gold did over that period, but it wasn't a total bust either. Curious to see what others think about its current potential.

donna_rogers🏆Advanced (250-500k)Real Investor•less than a minute ago

Hey, interesting post! When you say "chatter," are you seeing this mostly in financial news/analyst reports, or more in forums and social media discussions? Just curious where the buzz is originating from.

margaret_chen🏆Advanced (250-500k)Real Investor•less than a minute ago

Interesting thought, but I'm not entirely convinced platinum is the best bet for an IRA right now, even if it seems "undervalued." While it has industrial demand, that can also make it more volatile than gold, which is primarily a monetary metal. For a retirement account, stability and a proven track record as a store of value are usually prioritized. Might be worth considering if that industrial link could actually work *against* it in a downturn.