Thinking about adding platinum to my precious metals IRA - undervalued or just volatile?

Michelle Collins

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Thinking about adding platinum to my precious metals IRA - undervalued or just volatile?

michelle_collins🏆Advanced (250-500k)

about 1 month ago

Key Takeaways

•As some of you know, I'm pretty heavily weighted in gold through my SDIRA, around $350k of my retirement portfolio is currently in physical gold.
•I'm a bit of a research nerd (comes with the territory as a professor here in Richmond), and I've been doing a deep dive into platinum lately.
•Specifically, whether it's genuinely undervalued right now or if I'm just getting caught up in a "shiny new object" syndrome for my IRA.

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Okay, so I've been wrestling with this for a bit and wanted to get some other perspectives, especially from folks who are deeper into the precious metals space than I am. As some of you know, I'm pretty heavily weighted in gold through my SDIRA, around $350k of my retirement portfolio is currently in physical gold. I'm a bit of a research nerd (comes with the territory as a professor here in Richmond), and I've been doing a deep dive into platinum lately. Specifically, whether it's genuinely undervalued right now or if I'm just getting caught up in a "shiny new object" syndrome for my IRA.

Historically, platinum has often traded at a premium to gold, and we're seeing a pretty significant divergence right now. The gold/platinum ratio is quite high. My initial thought process is that the industrial demand side, particularly with auto catalysts, has taken a hit, but with the push towards greener tech and potential shifts in energy markets, could we see a rebound? There's also the element of its rarity – it's significantly rarer than gold, which intuitively suggests a higher long-term value. I'm looking at this from a several-years-out perspective for my retirement, not trying to day trade it.

My concern, naturally, is volatility. Gold tends to be my reliable bedrock, a hedge against inflation and economic uncertainty. Platinum feels a bit more correlated to industrial cycles. Is the current price dip a fundamental re-evaluation of its role, or a temporary blip that savvy investors should be taking advantage of for their precious metals IRAs? I’m contemplating allocating maybe 10-15% of my current gold holdings to platinum if the argument holds strong enough, which would be a pretty significant chunk of change for me. That's about $35k-50k we're talking about.

Has anyone here added platinum to their Silver IRA (or Gold IRA, obviously) recently? What's been your experience with it? Are there any specific indicators or research points you've found compelling either for or against a strong platinum allocation right now? Or am I just overthinking it and should stick to my tried-and-true gold?

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4 comments

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Best Answer▲ 10 upvotes

joseph_harris📊Growing (50-100k)

Hey, that's a good question about platinum! It definitely has its moments. One thing to keep in mind, beyond its industrial demand, is the above-ground supply dynamics. Platinum is much rarer than gold, but it also gets consumed in industrial applications at a higher rate. This can lead to some interesting supply shocks.

For a really deep dive into the supply/demand picture, you might find the annual Platinum Quarterly report helpful. It breaks down production, industrial use, and investment demand. Could give you some solid data points for your decision!

Comments (4)

gary_stewart📊Growing (50-100k)•about 1 month ago

Totally hear you on this! I went through a similar debate a few years back. Had a good chunk in gold and was looking at platinum, thinking it was seriously undervalued. Ended up dipping my toes in, not with a huge amount, but enough to make it interesting. So far, it's been... well, let's just say it's added some "excitement" to my portfolio. Definitely more volatile than my gold, but I'm still holding out hope it has its moment. Curious to see what others say!

andrew_roberts👑Elite (1m-5m)Real Investor✓ Verified•about 1 month ago

Interesting thought process! I'm curious, when you say "heavily weighted" in gold, what percentage of your total retirement portfolio does that $350k represent? Just trying to get a better feel for your current allocation.

david_brown💎Premium (500k-1m)Real Investor•about 1 month ago

Honestly, I'd say platinum is probably both undervalued and volatile, which is part of the problem. It's got those industrial applications which can make it swing harder than gold based on economic outlook. Are you comfortable with that higher risk/reward profile in a retirement account? Gold feels more like a steady anchor for me personally when it comes to long-term holds.