Thoughts on Palladium for inflation protection?

Andrew Roberts

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Thoughts on Palladium for inflation protection?

andrew_roberts👑Elite (1m-5m)

about 2 months ago

Key Takeaways

•Been a gold guy for decades now, substantial part of the portfolio, especially in my IRA.
•I'm talking a high seven-figure allocation to precious metals total, over half of that in gold.
•It's served me extremely well.

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Been a gold guy for decades now, substantial part of the portfolio, especially in my IRA. I'm talking a high seven-figure allocation to precious metals total, over half of that in gold. Retirement's comfortable down here in Palm Beach, but I'm always looking at how to keep it that way, especially with all the chatter about inflation these days. My initial foray into metals was purely gold and some silver back in '08 when things looked shaky, primarily for inflation protection and wealth preservation. It's served me extremely well.

Lately, though, I've been looking a lot more closely at palladium. I've got a decent chunk of physical platinum, but palladium’s performance, particularly post-COVID, has been really stellar. I understand the industrial demand aspect being a huge driver, especially with automotive catalysts. My concern, or rather, my analytical challenge, is whether that industrial demand makes it a better inflation hedge than gold, or potentially introduces too much volatility when the auto market eventually slows or shifts significantly (think EVs). Gold feels like the ultimate safe haven, less tied to specific industrial cycles.

My current Gold IRA provider does offer palladium, and I've been contemplating a small (for me, so still a substantial dollar amount) allocation within my self-directed IRA – maybe high six figures, pulling from some of my more aggressive growth plays that I'm keen to de-risk slightly. The thought is to diversify my "inflation-proof" bucket beyond just gold and silver. Has anyone here had significant experience holding palladium long-term within an IRA, specifically for inflation protection rather than pure speculative growth? What are your thoughts on its role as a hedge compared to gold in the current climate?

Appreciate any insights folks have. Always good to hear differing perspectives.

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12 comments

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david_brown💎Premium (500k-1m)

I've been following this topic closely and really appreciate the insights here.

Comments (12)

laura_sanchez💰Established (100-250k)Real Investor✓ Verified•about 2 months ago

Totally get where you're coming from. I was in a similar boat a few years back, heavy into gold and silver, but started looking at palladium. Didn't go as deep as you're probably considering, but I did dabble a bit. It’s been… interesting.

My thinking was less about a direct replacement for gold for inflation and more about diversification within the precious metals basket, especially with its industrial demand. Keen to see what others here have to say on it as a primary inflation hedge though.

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

Totally get wanting to diversify your precious metals holdings, especially with that kind of portfolio. You mention "high seven-figure allocation to precious metals total" and "over half of that in gold."

When you say "over half of that in gold," what's the breakdown of the *other* half currently? Is it mostly silver, or do you have some platinum in there already you're looking to build on?

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

Interesting thought, but I'm not entirely convinced palladium's the play for *inflation* protection, at least not in the same league as gold. Sure, it has industrial demand, which can be a double-edged sword. If the economy tanks, that demand could dry up faster than gold's safe-haven appeal. Gold's track record for preserving purchasing power over centuries is pretty hard to beat, whereas palladium feels a bit more volatile and tied to specific industrial cycles. Just my two cents, but sticking with a larger gold allocation feels like a safer bet for that specific goal.

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

Hey, that's a smart move always looking to diversify! While palladium has definitely seen some wild swings, it’s worth noting its industrial demand is a huge factor.

For anyone else curious, here's a pretty digestible article from the World Platinum Investment Council (they cover palladium too) that breaks down some of the supply/demand dynamics and how that can affect its price as an investment: https://www.platinuminvestment.com/platinum-group-metals/palladium. Could be helpful for getting a broader perspective!