Palladium in a Self-Directed IRA

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Despite the IRA eligibility of platinum and palladium, gold and silver remain particularly popular among precious metals IRA investors. Meanwhile, the somewhat forgotten metals—especially palladium—have flown under the radar as viable assets in self-directed IRAs.

There’s already a marketplace for palladium bullion products, but the metal will soon take another familiar form. The American Eagle coin, a prominent and relatively trusted “brand” in the precious metals community, will be made available to palladium investors on September 25, 2017 as announced by the United States Mint. The first ever Palladium American Eagle will feature one ounce of .9995 fine palladium (no fractional coins just yet) and will therefore meet the minimum purity requirement for IRA eligibility.

Like gold and silver, palladium derives a fair share of its value from industrial applications. The chemical element is used to manufacture catalytic converters for automobiles, dental fillings, and jewelry (a gold-palladium alloy can produce quality white gold). As of this publication, the spot value of palladium was sitting at about $915.00 per ounce. When compared to the $375.00-per-ounce value of 2007 and the $700.00-per-ounce value of 2012, palladium has shown to perform well over the years. Successful long-term assets characterize a strong financial strategy, so the overall growth of palladium during the last decade may warrant consideration from IRA investors.

It’s worth noting that the palladium market has exhibited a higher degree of volatility than those of gold and silver. After reaching $900.00 per ounce in 2015, palladium fell to $500.00 in 2016 before rebounding to the current price. The correction was just as swift as the drop, but those may have been tense months for anyone who monitored palladium prices on a daily basis. In this regard, palladium mirrors the main securities indices by sustaining periodic drop-offs while advancing in the long run. However, unlike stocks or mutual funds, physical assets tend to consistently bear value as investments, commodities, and sometimes even as currency. Publicly traded shares, on the other hand, will always carry the risk of becoming as worthless as the paper they’re printed on.

As with any investment approach, diversifying one’s portfolio can go a long way toward promoting financial success down the road. The incorporation of alternative investment options like precious metals—with palladium as a seldom considered but perfectly valid option—can help self-directed investors achieve this. For more information about investing in precious metals with your self-directed retirement plan, please don’t hesitate to contact New Direction IRA.

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