Platinum
Platinum is a dense, silvery-white precious metal that has been used and traded for centuries. It is unusual in that it is both an IRS-approved precious metal for retirement accounts and a critical industrial input, a dual nature that has historically given its price a different rhythm from gold.
Historical context
Platinum was worked by pre-Columbian peoples in South America and was identified as a distinct element by European scientists in the 18th century. Since then it has been used in fine jewelry, laboratory equipment, and a widening range of industrial applications.
Its long history as a rare, workable metal is part of why some investors consider it alongside gold and silver when thinking about precious-metals exposure.
How it has behaved across market conditions
Because roughly half of platinum demand has historically come from industry, particularly automotive catalytic converters, its price has often tracked the industrial and automotive cycle more closely than gold does.
During some inflationary periods, precious metals broadly have risen, but platinum has also, at different times, traded both above and below the price of gold depending on industrial demand. This dual nature is often viewed as a form of diversification within a metals allocation.
Supply and demand drivers
Platinum mine supply is heavily concentrated in South Africa, with additional output from Russia and Zimbabwe, so disruptions in those regions have historically moved the market.
On the demand side, the largest drivers are catalytic converters (especially in diesel engines), jewelry, chemical and petroleum refining, and emerging hydrogen fuel-cell technology.
IRS eligibility for a precious-metals IRA
To be held in a self-directed precious-metals IRA, platinum must meet the IRS minimum fineness of .9995 and be produced by an approved mint or refiner, then stored with an IRS-approved custodian and depository.
Eligibility rules are set by the IRS and can change over time.
Educational information only. This guide is for general educational purposes and is not financial, tax, or investment advice, nor a recommendation to buy or sell any metal or security. Precious-metals investing involves risk, including possible loss of principal, and prices can be volatile. Past performance does not indicate future results. IRS eligibility and fineness rules can change, verify current rules and consult a licensed professional about your situation.
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Precious vs. Industrial Metals Cheat Sheet
A one-page, plain-English breakdown of how gold, silver, platinum, and palladium differ from base metals like copper and bronze, including which are IRS-approved for IRAs.
- ✓ Precious vs. base metals, side by side
- ✓ Which metals are IRS-approved (and the fineness rules)
- ✓ What historically drives each metal's price