When you hear the phrase “Gold IRA” it’s only natural to assume that the only thing you can place in one is gold! The reality is very different though, as a Gold IRA can also contain a number of other precious metals, including platinum. In this short article we’ll take a look at some of the things you need to know about adding platinum to your Gold IRA, so you make decide whether it’s something that will benefit you…
What is Platinum?
Platinum is regarded as one of the most precious metals in the world. Discovered in 1735, it has a remarkable resistance to corrosion – which is one of the reasons it is so sought after. There are many different uses for the metal, however the most common is as a catalyst in chemical reactions. It is also used for laboratory and medical instruments, as well as within jewellery – for many, platinum holds a massive amount of prestige.
The main reason for the high price of platinum has nothing to do with its use though – it is instead due to the fact that it is incredibly rare. It is found in reasonably large quantities in just a handful of places throughout the world, such as South Africa and Canada. Interestingly, platinum is often found in areas that have been hit by a meteorite in the past, as meteorites often contain platinum within them. The Sudbury Basin in Ontario is an example of this.
Are There Any Requirements for Platinum in Gold IRAs?
Like everything else that goes into a Gold IRA, platinum must meet certain standards before it can be included. Rules laid down in the Taxpayer Relief Act of 1997 state that any platinum included within a Gold IRA must have a minimum fineness of 0.9995 in order to be included, plus any platinum bars must have been manufactured by a national government mint or by a refiner/assayer with NYMEX or COMEX approval. Any good Gold IRA company will ensure that these requirements are met should you add platinum to your portfolio.
Why Add Platinum to a Gold IRA?
One of the most important things to do with a Gold IRA is to ensure that it is diverse – i.e. that it contains a number of different elements. If you simply stick to one type of investment, such as gold, you are effectively putting all your eggs in one basket. Therefore, if anything disastrous should happen to the price of gold, your entire IRA will be affected. If you had diversified though, only a percentage of the portfolio would have been hit.
How to Add Platinum to a Gold IRA
Adding platinum to a Gold IRA is very easy, as all Gold IRA companies will offer this metal to their clients. Simply talk to them and decide whether you’d like to purchase bars or coins, and the platinum will be added to your Gold IRA in no time! Don’t forget to also look at other metals too – namely silver and palladium – to see whether they might be a good addition to your Gold IRA as well.