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 took another familiar form a while back. The American Eagle coin, a prominent “brand” in the precious metals community, was made available to palladium investors on September 25, 2017. The inaugural Palladium American Eagle featured one ounce of 99.95% fine palladium, thus meeting 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). 

It’s worth noting that the palladium market has exhibited a higher degree of volatility than those of gold and silver. However, unlike stocks or mutual funds, physical assets tend to consistently bear value as investments, commodities, and sometimes even as currency. Traded shares, on the other hand, will always carry the risk of becoming worthless.

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 our Precious Metals Asset Team at pmat@ndtco.com or 877-742-1270 (Ext. 185).

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