Platinum is a rare industrial precious metal that has the international currency symbol of XPT. According to recent estimations, platinum is around 30 times rarer than gold but despite that fact it is often overlooked by investors in favor of the more popular gold and silver.
Platinum has many industrial uses, especially in the automobile industry. It’s used to manufacture catalytic converters for vehicles that run on gas and reduce the emission of harmful toxins into the atmosphere. It is very popular in the jewelry industry as well. Platinum is extremely resistant to corrosion and tarnish (which makes it a “noble metal”) yet it remains malleable, so it’s easy to manipulate and shape.
Many investors consider platinum bullion a sensible hard asset in which to invest. In fact, experts suggest that any investment portfolio could benefit from having 5% to 10% allocated to the hard assets class.
Finally, platinum is one of the four primary precious metals allowed by the IRS to be used to fund a self-directed individual retirement account. Many countries issue platinum bullion coins as a form of investment. Likewise, private mints across the world produce platinum bars. If the IRS requirements are met, those platinum products can be used in a Platinum IRA.
This page is exclusively dedicated to IRA approved platinum bullion products. Keep reading to learn more about Platinum IRAs.
What is a Platinum IRA?
A Platinum IRA is a self-directed retirement account. That means the account holders themselves have control over the assets and are responsible for doing their own due diligence and research. Moreover, a Platinum IRA is an account in which the holder decides to use platinum as a way of funding it.
A self-directed retirement account, unlike a conventional IRA, has a broader spectrum of options you can choose from to fund it. Conventional IRAs are limited to bonds, stocks, certificates of deposit, mutual funds and ETFs (exchange-traded funds). With a self-directed IRA, or SDIRA, US citizens can resort to real estate, precious metals, mortgages and private equities, to name a few examples.
Types of Bullion IRAs
A SDIRA, or self-directed individual retirement account, is usually a variation of either traditional IRA or a Roth IRA.
Both deposits and earnings in a traditional IRA are tax-deferred. That means the investment grows free of dividend or capital gains taxes. However, once the individual reaches retirement age (currently at 59.5 years), withdrawals from the account will be tax levied.
A Roth IRA, on the other hand, is funded with after-tax income. That means both the earnings within the account and the withdrawal will be tax-deferred.
The moment in which the account holder pays taxes is the main difference between the two types of account. With a traditional IRA, taxes are paid upon withdrawal at retirement age, whereas with a Roth IRA, taxes are paid before the asset is used to fund the account.
What are the benefits of a Platinum IRA?
As we have mentioned before, platinum is one of the most common forms of investing in physical precious metals. It’s a highly resistant tangible asset that can be a great store of value for generations to come.
Another reason why investors turn to platinum is because many see it as a safe haven against fiat currency devaluation and market speculation. Much like gold and silver, it tends to perform well in an economic downturn.
Given these reasons, platinum could make for a sensible choice when funding your IRA. Many experts suggest it is a long-term investment that could even outperform stocks in the long run, though this is purely speculation.
All 50 States in the US provide some extent of creditor exemption from IRAs. The US is a highly litigious country. Business owners and self-employed people could benefit from the security that a precious metal IRA provides.
We wrote a post on our blog explaining more about precious metals IRA protection statutes in the 50 States. Click here to learn more about it.
What products are IRA approved precious metals?
The IRS creates the rules defining what bullion products can fund a retirement account. Regarding precious metals, the rules are pretty strict. Both platinum and palladium require a purity level of .9995 or higher. The criteria is slightly lower for gold and silver being .995 or higher for gold, and .999 or higher for silver.
Some examples of notable products that are non-approved are 90% silver coins, pre-1933 gold coins and the South African official gold bullion coins, such as the Gold Krugerrand..
SD Bullion offers a variety of platinum coins and platinum bars that meet the IRS rules. The products above on this page are all IRA approved.
Popular IRA-approved Platinum Bullion
Platinum bullion coins are among the most popular products when it comes to Platinum IRAs. The reason is that they are issued and backed by a sovereign government, meaning they carry a face value and are considered legal tender in the country that issued them.
Besides coins, platinum bars from highly regarded private mints are usually a safe choice as well. Some of the most notable manufacturers include PAMP Suisse and Valcambi Suisse. Below we list out some of the most popular platinum bullion products investors use to fund their IRAs.
- PAMP Suisse Platinum Bars
- Valcambi Suisse Platinum Bars
How to set up a Platinum IRA?
IRS rules stipulate the IRA holder cannot retain possession of the bullion they are allocating to their retirement account. They need an IRA Custodian or IRA Trustee to hold the metals on the investor’s behalf.
You can visit our Gold & Silver IRA page to learn more and see a list of recommended precious metals IRA custodians to research and choose from. Once your account is set up with one of them, talk to the Administrator to allocate part of your funds into platinum or other precious metals of your choosing.
Finally, you will have to choose a trusted precious metals dealer. On this step, consider us here at SD Bullion. Our business has been in operation for over 8 years earning an A+ rating from the Better Business Bureau and we have more than 50,000 positive reviews from our customers. Contact our support service today at 1(800)294-8732 or through our live web chat feature in case you need any assistance setting up your precious metals IRA account or choosing IRA approved bullion products. We are available from Mondays to Thursdays, from 8 am to 6 pm ET, and on Fridays, from 8 am to 5 pm ET.