Platinum in a Retirement Account
Platinum can be held in a self-directed IRA if it is bullion of at least .9995 fineness or an American Platinum Eagle, and it is stored by an approved depository. It is a smaller, thinner market than gold or silver, with supply concentrated in a handful of countries and demand driven largely by industry, so its price can move in ways that have little to do with gold.
The Legal Basis for Holding Platinum
Section 408(m) of the Internal Revenue Code treats collectibles bought by an IRA as distributions, with an exception for gold, silver, platinum, and palladium bullion that meets the minimum fineness a regulated futures exchange requires for delivery. For platinum, that standard is .9995. The same section names the platinum coins issued by the U.S. Mint under 31 U.S.C. 5112(k), meaning the American Platinum Eagle qualifies by statute. The statute is available from Cornell's Legal Information Institute, and we compare all four metals on the IRS purity standards page.
Eligible Platinum Products
Coins most custodians recognize include:
- American Platinum Eagle, struck by the U.S. Mint at .9995 fine
- Canadian Platinum Maple Leaf from the Royal Canadian Mint, .9995
- British Platinum Britannia from the Royal Mint, .9995
- Austrian Platinum Philharmonic from the Austrian Mint, .9995
Platinum bars of .9995 or better from accredited refiners, in sizes such as 1 ounce and 10 ounces, are also commonly accepted. Bars typically arrive sealed with an assay card and serial number. Availability varies more than with gold: some coins are minted irregularly, and dealer inventory can be thin. Our page on platinum coins and bars covers product details for cash buyers as well.
Where Platinum Comes From
The U.S. Geological Survey's platinum-group metals statistics show that mine production is heavily concentrated. South Africa supplies the large majority of the world's newly mined platinum, with Russia a distant second and smaller output from Zimbabwe, Canada, and the United States. In the U.S., production comes mainly from mines in Montana.
Concentrated supply is a double-edged feature. Power shortages, labor disputes, or policy changes in one country can affect world output, which may push prices up. The same concentration means the market can be sensitive to news in ways that are hard to anticipate. Recycling, mainly from spent catalytic converters and jewelry, adds a meaningful secondary supply.
What Platinum Is Used For
Unlike gold, where jewelry and bar-and-coin demand dominate, most platinum goes into industrial uses. USGS identifies key applications including:
- Catalytic converters that reduce vehicle emissions, historically important in diesel engines
- Catalysts in chemical production and petroleum refining
- Glass manufacturing equipment
- Jewelry
- Electronics, medical and dental devices, and fuel cells
Because of that profile, platinum prices may respond to auto production, emissions rules, and shifts in vehicle technology. Substitution matters too: carmakers have at times swapped between platinum and palladium depending on relative prices. The supply side and these shifts are covered in platinum supply and demand.
How Platinum Can Fit in a Metals Account
Some people add a small platinum position for diversification within their precious metals holdings, on the view that its drivers differ from gold's. That diversification can work in both directions. Platinum has gone through long stretches where it traded well above gold and others where it traded well below, and its price has been more volatile than gold's.
A few practical points:
- Spreads: because the market is smaller, the gap between buying and selling prices may be wider than for gold bullion coins.
- Buyback terms: check whether the dealer's written buyback policy covers platinum, and on what basis it prices it.
- Custodian acceptance: most metals custodians handle platinum, but confirm the specific product before buying.
- Storage: platinum is stored at the same approved depositories as gold and silver, under the same rules.
Goldco states that it offers platinum and palladium in addition to gold and silver. If you want to see what it lists, our page on platinum and palladium at Goldco explains what to ask. For platinum's sister metal, see palladium in a retirement account.
Frequently Asked Questions
Is platinum rarer than gold?
Annual mine production of platinum is much smaller than that of gold, according to USGS data. Rarity alone does not set price, though; demand and above-ground stocks matter too.
Can a platinum coin with a numismatic premium go in the account?
Proof American Platinum Eagles fall under the statutory coin exception, but they cost more per ounce than bullion versions. Check with the custodian, and compare the premium to the metal value.
Is platinum priced like gold?
Platinum has its own benchmark prices and trades on futures exchanges such as those operated by CME Group. It is quoted in U.S. dollars per troy ounce, like gold.