It’s likely you’re familiar with the merits of owning gold, both inside and outside an individual retirement account (IRA), even if you don’t own gold yourself. However, when it comes to platinum, fewer people understand the important role it can play, especially in a well-diversified IRA. According to Trevor Raymond, director of research at the World Platinum Investment Council, platinum has “performed well against other asset classes over a long period and has proven itself to be a good store of value with a strong set of diversifying properties.”
Of course, as with other select precious metals, platinum coins and bars must meet certain requirements to be considered “IRA-eligible platinum” by the Internal Revenue Service (IRS). Some of those factors include a minimum fineness of 0.9995, and the platinum must have been produced by an accredited refiner, assayer, manufacturer, or government mint.
Read on to discover what qualifies as IRA-eligible platinum, what types of IRA platinum bullion coins and bars exist, and the potential benefits of turning cash-backed paper assets into a platinum IRA.
What Is a Platinum IRA?
A platinum IRA—just like a gold, silver, or mixed precious metals IRA—is a self-directed individual retirement account that allows you to turn your cash into physical platinum. Held by a custodian, this account allows you to reap the same tax benefits as other IRAs while also experiencing the time-tested advantages of owning physical precious metal assets.
It’s important to note that you’ll need a self-directed IRA (SDIRA) to directly purchase precious metals, such as platinum, within your IRA. Traditional IRAs typically house only stocks, bonds, mutual funds, and other relatively common assets. With an SDIRA, your options are expanded to alternative assets, allowing you to save for retirement on a tax-advantaged basis while choosing from a much wider list of where your money can be allocated.
With an SDIRA, you can choose to put your money into precious metals, such as platinum, silver, palladium, and gold. Generally speaking, precious metals, especially gold, have historically performed well during seasons of economic turmoil and geopolitical instability.
Discover how easy it is to take charge of your retirement with our free Precious Metals IRA Information Kit.
What Qualifies as IRA-Approved Platinum?
In order to quality as IRA-approved platinum, platinum coins, bars, and rounds must meet the following minimum precious metals requirements set by the IRS, using the Internal Revenue Code:
- They must have a minimum fineness of 0.9995.
- They must be produced by a national government mint or accredited refiner, assayer, or manufacturer.
- Proof coins must be encapsulated in complete, original mint packaging; be in excellent condition; and include a certificate of authenticity.
- Small bullion bars, other than 50-ounce platinum, must be manufactured to exact weight specifications.
- Non-proof (bullion) coins must be in brilliant uncirculated condition and free from damage.
Want to know more about the rules surrounding other precious metal IRAs? Explore six essential gold IRA guidelines to know now.
U.S. Money Reserve’s IRA-approved platinum products
As a trusted and leading distributor of government-issued and IRA-eligible platinum and other precious metals, U.S. Money Reserve offers a variety of popular products, including:
- American Eagle Bullion coins
- Australian Koala coins
- Canadian Maple Leaf coins
- Certain 0.9995 minimum fineness and higher bars
Discover U.S. Money Reserve’s full range of IRA-approved precious metals.
What Types of Platinum Cannot Be Included in an IRA?
Some types of platinum aren’t IRA-eligible and can’t be added to your IRA. These include:
- Platinum that doesn’t meet the minimum purity standard of 0.9995 fineness
- Platinum that doesn’t come from an approved government mint or accredited refiner, assayer, or manufacturer
- Any rare, collector, or commemorative platinum coins. For example, popular bullion coins not IRA-approved include:
- China Platinum Panda
- Somalia Platinum Elephant
- Switzerland Platinum Shooting Thaler
- Cook Islands Platinum Coins
- Tong Seoul Olympics Proof Coins
At U.S. Money Reserve, we strongly believe that the best decisions for your portfolio begin with having the right information. If you’re starting out on your precious metals IRA journey, it can be important to work with an experienced and trustworthy team to help set you up for success in retirement. Get started with our free Precious Metals IRA Information Kit.
What Are the Potential Benefits of a Platinum IRA?
There are several potential benefits of platinum IRAs. For many Americans, platinum is used as a recession hedge alongside gold and silver. This means the precious metal can help diversify your portfolio, adding an additional level of risk protection. Also, because of platinum’s inertness, it’s an extremely durable precious metal, meaning it can last lifetimes as a part of a financial legacy. And as part of a precious metals IRA, platinum must be kept in an IRS-approved secure location, so it’s unlikely that any platinum within your IRA will be lost, damaged, or destroyed.
4 Benefits Of Buying and Owning Platinum
Considering expanding your precious metals IRA to include platinum, palladium, silver, or gold? Find out more about your IRA-approved options now.
Historical Performance of Platinum
While platinum doesn’t have a history of private ownership as long as gold’s, it is considered a strong symbol of wealth and quality. That’s largely because of its industrial applications, such as its use in the automotive industry. It’s also one of the rarest metals in the world. Like other precious metals and commodities in general, platinum sees its purchase price for coins and bars increase when demand is high and supply is limited.
As shown in the chart below, while the price of platinum can fluctuate, it has more than doubled over the last 30 years, from around $390/oz. in April 1991 to today’s price of around $890/oz. (as of 8/23/2022).
Platinum price chart (measured from April 1, 1991, to August 23, 2022)
For the most up-to-date price of platinum, explore our platinum price chart now.
How to Add Precious Metals to your Self-Directed IRA
According to Paul Wilson, CEO of the World Platinum Investment Council, platinum is sought after as a hard asset during periods of peak global risk “because of its deep discount to gold and palladium, and due to its significant short- and long-term demand growth potential.” Adding precious metals to your SDIRA, such as IRA-approved platinum coins, may be an appealing option for diversifying your retirement portfolio, depending on your unique financial situation and goals.
If you’re thinking about adding platinum, gold, and other precious metals to your SDIRA, it’s vital that you partner with a trusted distributor who understands the sometimes-complex nature of IRA-approved precious metals.
U.S. Money Reserve is America’s Gold Authority®—but our offerings don’t stop there. In addition to gold, we also offer government-issued silver, platinum, and palladium. If you’re interested in learning more, request a free Precious Metals IRA Information Kit or call 855-889-5111 to inquire about your options today.