May 20, 2024

From an Asteroid to a Precious Metal: Investing in Palladium with a Gold IRA

Written By: Daniel Gleich

Key Points 

  • A Gold IRA or Precious Metals IRA can succeed in further diversifying your retirement portfolio, thereby possibly safeguarding your retirement savings.
  • Palladium is one of the four Self-Directed IRA (SDIRA) allowable precious metals. Just like gold, silver, and platinum, the palladium you invest in must meet certain fineness requirements as regulated by the IRS.
  • Containing multiple purposes, palladium is a prominent precious metal that is quintessential to everyday life.
An asteroid soars across the sky, signaling Pallas, the second-discovered asteroid in which the precious metal Palladium took its name.

Palladium is an eponymous metal, named after the second discovered asteroid, Pallas.  This particular asteroid possessed a mineral composition and was given the namesake of the Greek goddess, Pallas Athena. Embracing this knowledge, we now know that what lies behind Palladium is an infinite, rich history. As one of the four allowable precious within a Self-Directed IRA (SDIRA), investing in palladium with a Gold IRA holds the potential for materializing a secure, generally profitable, and galactic retirement. 

If you’re searching for an innovative alternative investment opportunity, precious metals may be the asset that best suits your ambitions. Gold IRAs make an exceptional vehicle for preparing for your retirement. Let’s stargaze and chase this comet: 

Palladium, Gold IRAs, and Universal Functions

A family takes a joyous road trip across the country, thanks to palladium which serves as a catalytic converter.

While this shiny, silvery-white metal may not be as widely discussed as silver and gold, it undoubtedly is a necessity for things we use in our everyday life. Palladium is a major component in catalytic converters in vehicles. This is because palladium is powerful – hydrogen diffuses through palladium, which allows for 90% of the harmful gases in automobile exhaust to be converted and purified.   

Palladium is also a material used in dental fillings and crowns, blood sugar testing strips, aircraft spark plugs, and is prevalent in watches and other forms of jewelry. Ceramic capacitors used in cellphones and laptops also contain this rare earth metal. With ample amounts of ways to be utilized, it’s likely that palladium is an investment that will persistently maintain value. 

The Finite Details of Gold IRAs

Self-directed investments with a Gold IRA are subject to IRS rules and regulations and must adhere to a set of guidelines. There are certain qualities palladium investments must hold to be accepted into the Precious Metals IRA scope. Primarily, all appropriate palladia must meet the fineness requirement of 99.95% purity. Furthermore, a Gold IRA only permits bullion coins, and bars, rounds, and coins that have been produced by a certified and accredited manufacturer or have a national government mint while simultaneously meeting the fineness requirements.

An accredited manufacturer displays a bar of palladium that meets the fineness requirements necessary to be accepted by a Gold IRA.

Prior to purchasing palladium, it’s considered best practice to get a full assessment of your anticipated precious metal to verify that it’s suitable for a Gold IRA.

Possession and Storage

An approved depository is shown, depicting that a trusted custodian would use a facility such as this for the storage of your precious metal in a Gold IRA.

After the McNulty v. Commissioner court case, a mandate was issued that the safest approach to storing your IRA owned precious metals is at an approved depository. These accepted facilities are encased with high-level security, insurance, and vault specifications. Your appointed custodian will generally have a particular depository they work through.  

Malleable Investing Miracles: The Boosted Gold IRA

A Gold IRA grants investors opportunities that aren’t available to holders of standard brokerage accounts. In fact, standard accounts typically limit your investing to Wall Street products such as stocks, bonds, and mutual funds. With a Gold IRA, you’re able to invest beyond Wall Street in alternative assets that are independent of the stock market’s general volatility. This is exceptionally beneficial as it will diversify your retirement portfolio, which can aid in mitigating risk. Beyond precious metals, you can also invest in other asset classes like real estate or startups

A hand stops Jenga blocks from continuing their domino-like fall, indicating that by investing with a Gold IRA, you can hedge against inflation and stand a chance against the ever-changing currents of the stock market.

Since precious metals and the stock market have an inverse relationship, investing in palladium can possibly hedge against inflation. Typically, if the value of the stock market decreases, the worth of palladium improves. Moreover, palladium is a tangible asset, which serves almost like a safety net for investors. Since it’s essentially a raw material, the chance of it reaching a zero-dollar value is lowered exponentially. Combine this with the limited supply of precious metals circulating and its general global appeal, and you’ve found yourself an investment with immense potential to withstand the test of time. 

Adapt Your Investment Vehicle to Your Style

A pen and checkbook lying on a desk, informing investors that through a Self-Directed IRA or Gold IRA, you can upgrade your account to acquire checkbook control so you can make investments in real time.

Gold IRAs enhance your investing experience by permitting the funds to accumulate in a tax-advantaged account. You as the investor are allowed to create a Self-Directed Traditional Gold IRA (tax-deferred), or a Self-Directed Roth Gold IRA (tax-free), which indicates the way in which you receive your advantage. In conjunction, Gold IRAs can provide you with an even higher degree of hands-on-investing if that’s your fancy.

A Quick Reference Guide of Gold IRA infographic, giving a brief overview of the bullet points you should know about investing in palladium.

Conclusion: Gold IRAs Bring the Perfect Combo of Metallic Chemical Elements

Rare with a limited quantity, precious metals such as palladium render exquisite alternative assets for Self-Directed IRAs. Through a Gold IRA, you can magnify your retirement portfolio by potentially safeguarding it against economic circumstances including the stock market’s fluctuations. As with any precious metal, it’s considered best practice to review all its stats, and learn more about your custodian’s means of storage. 

The periodic table of elements lies flat, with the square for palladium standing upright.

Want to give your investments some earthy composition? Our Self-Directed IRA Specialists are readily available to answer any of your questions regarding precious metals or any other asset class that’s sparked your intrigue. Schedule a free discovery call today!

Disclaimer: All of the information contained on our website is a general discussion for informational purposes only. Madison Trust Company does not provide legal, tax or investment advice. Nothing of the foregoing, or of any other written, electronic, or oral statement or communication by Madison Trust Company or its representatives, is intended to be, or may be relayed as, legal, tax, investment advice, statements, opinions, or predictions. Prior to making any investment decisions, please consult with the appropriate legal, tax, and investment professionals for advice.

Got Questions?

Speak with a Self-Directed IRA Specialist.
Blog Pages Right Side Contact Form (#11)

You've got questions? We've got answers.

Fill out our form below, and a Self-Directed IRA Specialist will answer all of your questions. 
All Pages Bottom Contact Form
Corporate Headquarters:
Madison Trust Company
401 East 8th Street • Suite 200
Sioux Falls, SD 57103
Mailing Address:
Madison Administration Company
One Paragon Drive • Suite 275
Montvale, NJ 07645
Monday - Thursday: 9:00AM - 6:00PM EST
Friday: 10:00AM - 4:00PM EST
Saturday/Sunday: Closed
(800) 721-4900
[email protected]
F: 845-947-1212