Platinum IRAs: Pros and Cons

Investing in an IRA can be a great way to prepare for retirement, but it’s important to understand the different types of IRAs available. Platinum IRAs are some of the most popular and have become increasingly accessible as technology makes investing easier than ever before. But what exactly is a platinum IRA? And what benefits – if any – does it offer compared to other investment options? In this article, we investigate both sides of the debate and explore the pros and cons of investing in a platinum IRA.

Before getting into the specifics about gold-backed investments, let’s look at how IRAs work generally speaking. An Individual Retirement Account (IRA) is simply an account that you open with an approved financial institution or brokerage firm. This type of account allows you to save money on a tax-deferred basis until you reach age 59½ when withdrawals from your account may begin without penalty. There are several different kinds of accounts with varying rules associated with each one, so it’s important to do your research before deciding which kind works best for your needs.

Platinum IRAs are one type of retirement account where investors put their money towards buying physical precious metals such as silver, gold, palladium and/or platinum instead of stocks or bonds. The underlying idea here is that these materials will hold their value over time while providing protection against inflation and market volatility. Sounds good right? Not necessarily! Let’s take a closer look at all the details behind investing in a platinum IRA so you can decide whether its worth considering or not.

Overview Of Investment Option

Investing in a Platinum IRA is an attractive option for many individuals looking to diversify their retirement portfolios. It offers potential benefits, such as tax breaks and a more secure form of savings than traditional investments. However, before jumping on the bandwagon, it’s important to consider the pros and cons associated with this type of investing. To hit the nail on the head, let’s take a closer look at what a Platinum IRA is and how it works.

A Platinum IRA is basically a specialized type of Individual Retirement Account (IRA) that allows you to invest in physical gold or platinum bullion instead of stocks or bonds. Since these metals are viewed as tangible assets, they can offer investors greater safety compared to other types of investments which may be subject to market volatility. Additionally, because gold and platinum have historically held their value over time, they tend to provide better protection against inflation than other forms of investment vehicles. As far as taxes go, gains from investing in precious metals within an IRA account are exempt from capital gains taxes until withdrawn.

In summary, investing in a Platinum IRA provides several advantages when building your portfolio but also comes with some drawbacks that should be taken into consideration before making any decisions. Potential investors should research all available options thoroughly and consult an experienced financial advisor if needed in order to make informed choices about their retirement plans.

Advantages And Disadvantages

Platinum IRAs are a great way to invest your retirement savings and take advantage of tax benefits. However, they have both advantages and disadvantages that need to be weighed before deciding if this type of investment is right for you.


  • Tax Benefits: Platinum IRAs can offer significant tax savings due to their lack of income taxes on contributions, as well as potential deferral of capital gains or other profits until withdrawal.
  • Flexibility: This form of investing allows investors to choose from a wide variety of investments such as stocks, bonds, mutual funds, ETFs, commodities and more.
  • Portfolio Management: Depending on the provider chosen, some platinum IRA accounts may come with professional portfolio management services included in the fee structure.
  • Diversification: By utilizing multiple types of investments within one account, investors may be able to diversify their portfolios while reducing overall risk levels.
  • Simplicity: Opening an account is relatively easy and many providers have streamlined processes that make it straightforward even for novice investors.


  • Fees & Expenses: Many providers charge hefty fees for trading and maintaining the account which can reduce returns over time. Additionally, commissions and other expenses associated with buying and selling individual securities will add up quickly so it’s important to read all disclosures thoroughly prior to signing up for any account.
  • Limited Access To Physical Assets: Some providers do not allow direct access to physical assets like precious metals or real estate which limits investor choice when building out a portfolio.
  • Liquidity Issues: Most platinum IRA accounts come with high minimum deposit requirements along with long holding periods before funds are available for withdrawal which could create liquidity issues down the road.
  • Risk Of Losses And Fraudulent Activity : As with any type of investing there is always the possibility of losses due to market fluctuations or fraudulent activity by third parties so caution must always be taken when making decisions about where money should be invested.
  • Low Returns On Cash Investments : Because most cash investments pay lower interest rates than other asset classes in a platinum IRA, it may not be worth putting too much money into these types of investments unless absolutely necessary.

Eligibility Requirements

The theory of whether anyone can utilize a platinum IRA is false. In order to be eligible, individuals must have an adjusted gross income at or below certain limits. Those with incomes over the limit are not able to contribute directly into a Roth IRA. Generally, these income limits range from $139,000 – $199,000 for individual filers and between $206,000 – $319,000 for joint filers in 2019.

When it comes to contributions allowed each year, the maximum amount that can typically go into any type of IRA account is six thousand dollars per person. However, those fifty-five years and older may add up to seven thousand dollars annually as they’re entitled to a catch-up contribution allowance. It’s important to note that no one is permitted to exceed their taxable compensation when making contributions so if someone earns only four thousand five hundred dollars this tax year then they should not put more than that amount into their retirement plan regardless of age.


Platinum IRAs are an attractive investment option for those seeking to diversify their portfolio and take advantage of the potential tax benefits. While this type of account may be beneficial, investors should consider both the advantages and disadvantages before making a decision.

The first point to note is that platinum IRAs offer higher returns than traditional retirement accounts. This makes them appealing for those looking for greater financial gain in the long run. In addition, these types of accounts have lower fees associated with them, which can help reduce overall costs over time. However, the lack of liquidity can make it difficult to access funds when needed in an emergency situation.

It is also important to understand the eligibility requirements associated with Platinum IRAs prior to investing. These accounts are not available to all individuals; certain criteria must be met including income level and age restrictions. Additionally, there may be other rules or regulations specific to each individual’s situation that will need to be taken into consideration as well.

In sum, understanding the pros and cons related to Platinum IRAs is essential for any investor considering utilizing this form of retirement savings tool. Researching carefully before taking action can ensure that one obtains maximum benefit from such an investment while avoiding any pitfalls associated with it. Ultimately, weighing up all options will allow an informed decision on whether a Platinum IRA is right for one’s own unique circumstances.