Platinum in a Gold IRA - is it undervalued or a trap?

Steven Mitchell

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Platinum in a Gold IRA - is it undervalued or a trap?

steven_mitchell🏆Advanced (250-500k)

about 2 months ago

Key Takeaways

•Been seeing a lot of chatter lately, even offline, about platinum and its potential as an investment.
•Specifically, wondering if anyone here has gone with platinum in their self-directed Gold IRA.
•I’ve been almost exclusively gold and silver since I opened my account three years ago – got about $380k in there, mostly physical.

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Been seeing a lot of chatter lately, even offline, about platinum and its potential as an investment. Specifically, wondering if anyone here has gone with platinum in their self-directed Gold IRA. I’ve been almost exclusively gold and silver since I opened my account three years ago – got about $380k in there, mostly physical.

My background is manufacturing here in Cleveland, and I’ve always been drawn to hard assets. Gold and silver just make sense to me; they’re tangible, have intrinsic value, and feel like a real hedge against inflation and all the printing going on. But platinum… it’s a bit different. I know it’s got industrial demand, especially with catalysts, but that also makes it more cyclical, right? It's currently trading well below gold, which historically hasn't always been the case. Is this an opportunity, or is it reflecting a permanent shift in demand?

I’m thinking about potentially diversifying a small portion, maybe 5-10% of my precious metals holdings, into platinum if the sentiment is strong enough. It feels like gold has had a solid run, and while I’m not selling, I’m always looking for undervalued assets. What are the major considerations here for an IRA? Are the premiums comparable? I know liquidity can be a concern with platinum sometimes, but for an IRA holding, that's less of an immediate worry.

Anyone got some real-world experience? Or strong opinions one way or the other? Is this current price dip a real chance to pick up something undervalued for the long haul, or am I just looking at shiny object syndrome?

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5 comments

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Best Answer▲ 10 upvotes

catherine_bell🏆Advanced (250-500k)

Totally agree with you on the increasing platinum chatter! I've been seeing it everywhere too, not just online. For me, I actually diversified into platinum in my SDIRA about a year and a half ago. Didn't go crazy, but put about 15% of my precious metals holdings into it. Honestly, no regrets so far. It hasn't boomed or anything, but it's held its own and adds a bit more balance to my portfolio beyond just gold and silver.

Comments (5)

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

Totally get where you're coming from with the platinum question. I actually dabbled a bit in platinum in my IRA a few years back, maybe 2019 or so? I'd read a bunch of stuff suggesting it was super undervalued compared to gold at the time. Honestly, it was a pretty small allocation and I ended up selling it when gold started its big run. Didn't make a huge profit, but didn't lose anything either. It felt more like a speculative play than a core holding for me, but it's interesting to see the chatter picking up again!

janet_cook📊Growing (50-100k)•about 2 months ago

Interesting question! When you say "chatter lately, even offline," what kind of chatter are you hearing? Is it mostly about industrial demand, or specific geopolitical factors, or something else entirely?

betty_king📊Growing (50-100k)•about 2 months ago

Interesting thought process, given the recent platinum buzz. While I totally get the appeal of diversification and "getting in early" on something potentially undervalued, I'm a bit more cautious when it comes to IRAs specifically.

My take is that for a *retirement* account, especially one focused on precious metals for stability, I'd stick to the tried and true. Gold and silver have a long, undeniable history as stores of value and haven't seen the wild swings platinum has. Platinum's industrial demand often makes it a bit more volatile, which might not be ideal for something you're hoping will be a rock-solid foundation for your golden years. Just something to consider!

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

Hey, interesting question! Platinum *does* have some unique industrial demand that gold doesn't, which can make it an intriguing option. One thing I'd definitely recommend looking into is the spread on platinum vs. gold/silver with your custodian. Sometimes the buy/sell premium can be a bit wider for platinum, which can eat into your returns.

You might find this article on diversification within precious metals IRAs helpful: https://www.investopedia.com/gold-ira-5079149 It touches on platinum and palladium too, not just the usual suspects. Good luck with your research!