Investing in a Platinum IRA: What It Is, How It Works, Benefits
Investing in platinum through a self-directed Individual Retirement Account (IRA) allows you to hold this rare industrial metal within your retirement portfolio. Gold IRA Planners breaks what to know about Platinum IRAs, how they work, and why platinum's limited supply and growing demand make it a unique asset to consider in diversification.
What is a Platinum IRA?
A Platinum IRA is a self-directed IRA capable of holding physical platinum coins and bars in IRS-approved storage, offering the same tax advantages as Traditional or Roth IRAs.
Platinum is less common than gold or silver and plays a key role in automotive and clean energy technologies. These factors makes it a distinctive IRA asset for investors seeking exposure to a metal with industrial relevance and limited supply.
Why Invest Platinum in an IRA?
Platinum in a self-directed IRA provides exposure to a metal with constrained global supply, and high industrial use. Its unique combination of rarity and demand diversification makes it an asset often considered by investors looking to hold real-world materials with a growing strategic economic importance.
Platinum's Rarity
Platinum is significantly rarer than gold or silver, with annual global mine output concentrated primarily in South Africa and Russia. This supply concentration produces geopolitical and labor-related volatility, which can impact the price of platinum. Since its so rare, investors may consider Platinum in an IRA for its unique characteristics as an asset.
Industrial Demand
Platinum is used heavily in automotive catalytic converters like diesel engines and is expanding into hydrogen fuel cell technologies. As countries expand decarbonization strategies, platinum ends up playing a growing role in energy transition components like electrolyzers. These industrial applications provide ongoing demand for platinum's value as a physical asset.
How Does a Platinum IRA Work?
A Platinum IRA allows you to hold physical platinum bars or coins in a self-directed retirement account. An IRS-approved custodian will manage the storage of the purchased platinum with a secure depository. You can fund the account through a Platinum IRA rollover, transfer, or annual contribution, then purchase IRS-approved platinum from a trusted dealer.
Only IRA-allowed platinum products with a minimum purity of 99.95% (.9995) are permitted. The metals are stored in a secure, IRS-approved depository under your IRA's name. This process is similar to a silver-backed IRA or other precious metal, just depends which products you pick to buy.
How to Set up a Platinum IRA
To open a Platinum IRA, you'll first open a self-directed IRA to hold platinum. Next, fund the account through an eligible rollover or transfer. Once funded, you can purchase qualifying platinum coins and bars which will be shipped directly to an approved depository. The Platinum IRA Company you open the account with will guide you through selecting metals and establishing the account.
Before Opening a Platinum IRA, Plan Your Investment With Gold IRA Planners
Before opening a physical Platinum IRA, make sure you are planning how exactly you are going to invest. Gold IRA Planners makes it easy planning a Gold IRA in platinum and other precious metals with our guides and resources, readily available online and in premium eBook PDFs.