Investing in a Palladium IRA: What It Is, How It Works, Benefits
A Palladium IRA lets you invest in physical palladium through a self-directed retirement account, benefiting from tax-deferred growth in a retirement account. Gold IRA Planners explains what Palladium IRAs are, how they work, and what makes them stand out as an investment option in an IRA compared to other precious metals.
What is a Palladium IRA?
A Palladium IRA is a self-directed IRA that allows for the purchase of physical palladium, benefiting from the tax advantages of an IRA. Palladium IRAs provide a way to hold this precious metal in a self-directed IRA with IRS-approved palladium products.
Why Invest Palladium in an IRA?
Palladium in IRAs allows retirement investors access to this metal with its continuous supply challenges and concentrated industrial demand. Its primary use in emission-reducing auto technologies and emerging electronics makes it a performance-based physical asset that behaves differently than gold or silver.
Supply Deficits
Palladium has faced consistent global supply deficits due to its limited mining sources where most is in in Russia and South Africa, as well as its heavy reliance on recycled catalytic materials. This constrained supply environment has made palladium historically more volatile and responsive to external events, especially in the face of trade disruptions or production slowdowns.
Growing Demand for Catalysts
Over 80% of palladium demand stems from its use in catalytic converters for gasoline vehicles. As emission standards tighten worldwide, automakers continue to rely on palladium to meet compliance. This growing demand impacts the prices of palladium investments in IRAs.
How Does a Palladium IRA Work?
A Palladium IRA is a type of self-directed IRA that allows you to hold physical palladium bars or coins in a retirement account. To set one up, you can fund it through a rollover, transfer, or annual contribution. The IRA-eligible palladium must meet the IRS-required purity of 99.95% (.9995) and be stored in an IRS-approved depository. An IRS-approved custodian coordinates the purchase and secure storage of your palladium. Palladium is purchased through a trusted dealer or Palladium IRA company.
How to Set up a Palladium IRA
To set up a Palladium IRA you'll do the same steps a Gold IRA has: First choose a Palladium IRA company, then fund the account, next purchase palladium, then decide on storage, finally managing it each year. The company you choose to open a self-directed IRA with will help you through the process, ensuring you meet all IRS rules and requirements. The company can help you set the account up with other metals too like a silver backed IRA account or Platinum IRA.
Before Opening a Palladium IRA, Plan Your Investment With Gold IRA Planners
Before opening a new Palladium IRA and investing in physical palladium bullion, make sure you are planning your investment ahead. Gold IRA Planners helps you get prepared for your investment in physical precious metals like palladium, and holding them in a self-directed IRA.