Key Takeaways
- 1Platinum is 30x rarer than gold, offering high growth potential.
- 2It is a critical industrial metal (auto catalysts), meaning demand is tied to the economy.
- 3You can hold platinum in the same self-directed IRA as gold and silver.
- 4IRS purity requirement for platinum is very high: .9995 fine.
- 5Platinum is often more volatile than gold, making it better for growth than stability.
- 6American Platinum Eagles are the most popular choice for IRAs.
When people think of precious metals, they think of gold and silver. But Platinum—often called "the rich man's gold"—offers a unique investment opportunity that combines the scarcity of precious metals with the utility of industrial commodities.
Why Platinum?
Platinum is incredibly rare. All the platinum ever mined would fit into your living room. In contrast, all the gold would fill three Olympic-sized swimming pools.
The Bull Case for Platinum
Platinum is primarily an industrial metal, used heavily in:
- Automotive catalytic converters (reduces emissions)
- Jewelry (high durability)
- Electronics and medical devices
The Supply Crunch: Most platinum comes from South Africa and Russia. Geopolitical instability in these regions can cut off supply overnight, leading to explosive price growth.
Platinum vs. Gold
| Feature | Gold | Platinum |
|---|---|---|
| Primary Use | Monetary / Investment | Industrial / Auto |
| Economic Sensitivity | Counter-cyclical (Safe Haven) | Pro-cyclical (Grows with Economy) |
| Volatility | Low/Moderate | High |
IRS Rules for Platinum
The IRS is stricter with platinum than gold. To be eligible for an IRA, platinum coins and bars must be .9995 fineness (99.95% pure).
Approved Platinum Investments
Common IRS-approved choices include:
- American Platinum Eagle Coins
- Canadian Platinum Maple Leaf Coins
- Australian Platinum Koala/Platypus Coins
- Isle of Man Noble Coins
- PAMP Suisse Platinum Bars
The Risks
Because platinum is an industrial metal, it suffers during recessions when car manufacturing slows down. Gold tends to perform better during recessions. Therefore, platinum should be viewed as a growth play within a precious metals portfolio, not just a safety play.
Add Platinum to Your Portfolio
Find a Gold IRA company that offers a wide selection of IRS-approved platinum coins and bars.
Find a Platinum DealerPlatinum IRA FAQs
Why is platinum sometimes cheaper than gold?
Historically, platinum traded at a premium to gold. However, it is heavily dependent on the automotive industry (catalytic converters). When auto demand drops, platinum drops. Gold is a monetary metal, so it holds value better during economic slowdowns.
Is platinum a good retirement investment?
It can be an excellent diversifier. Because it is so rare and vital to industry, supply shocks can cause massive price spikes. However, it is more volatile than gold, so it should be a smaller percentage of your portfolio (e.g., 5-10%).
Can I add platinum to my existing Gold IRA?
Yes. A 'Gold IRA' is just a marketing term for a self-directed Precious Metals IRA. You can hold gold, silver, platinum, and palladium in the exact same account simultaneously.
Written By
Thomas Richardson
Thomas is a former wealth manager with 20+ years of experience. He founded Rich Dad Retirement to expose the flaws of traditional "paper asset" retirement planning and educate Americans on the stability of physical precious metals.