Diversification is defined by Wikipedia as: “The process of allocating capital in a way that reduces the exposure to any one particular asset or risk. A common path towards diversification is to reduce risk or volatility by investing in a variety of assets.”
While the definition elaborates further, we think you get the point…
As big believers in the merits of diversification, we believe that gold and silver can potentially reduce overall portfolio volatility and should be included in any long-term investment plan.
Just as you may consider diversifying stocks and bonds with other assets such as precious metals and real estate, wouldn’t it also make sense to diversify even further by holding various types of precious metals?
We think so…
While gold and silver may be the most widely held and recognized of the precious metals, other precious metals such as platinum can potentially add value and diversification to your holdings.
What exactly is Platinum Anyway?
Platinum is widely regarded as one of the most precious of the precious metals. Since its discovery in the mid-1700s, platinum has been found to have significant anti-corrosion properties making it very useful in many areas of industry. Among other areas, platinum is used for catalytic converters, dentistry equipment, jewelry, electrical contacts, lab equipment and thermometers.
Platinum is one of the rarer elements on earth. The largest deposits of platinum are in South Africa and Canada. Due to its rarity, only a few hundred tons of platinum are produced annually. Given its widespread scope of uses and limited supply, platinum is quite valuable and it sees a steady flow of demand.
Can I Buy and Hold Platinum in My IRA?
Absolutely. Certain types of platinum can be purchased and held within an IRA account. There are, however, some strict guidelines as to the type of platinum and its purity. Platinum bars and coins of .9995 fineness are eligible for inclusion in an IRA account. Eligible platinum coins include Australian Koalas, Canadian Maple Leafs, American Eagles and platinum Nobles. Platinum bars also must have been produced by a Government Mint or a refiner/assayer that is approved by Comex or Nymex.
Why Should I Consider Adding Platinum to My IRA?
Adding platinum bars or coins to your precious metals portfolio can add further diversification and may potentially smooth portfolio volatility. There are times when platinum may outperform gold and times when platinum may underperform gold. The same could be said for silver and even palladium. Platinum is in demand, has limited supply and is considered rare. These qualities may make platinum highly appealing for long-term investors. Like gold, platinum prices may also be influenced by economic conditions, monetary policy, physical demand, currency markets and overall investor sentiment.
While most likely think of gold and silver when it comes to establishing a precious metals IRA account, platinum can certainly play a key role in protecting your wealth as well.
We encourage you to speak with one of our account executives today. Our precious metals professionals can answer any questions you may have about investing in physical platinum and can help you set up a precious metals IRA account to save for your financial future. Call us today at 1-800-341-8584.