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CommoditiesFinancial PlaningPrecious MetalsSavings

Platinum as a Precious Metal IRA Investment


Physical Platinum IRAs are a type of individual retirement account. It belongs to a group of individual retirement accounts known as precious metal IRAs. These types of IRAs are self-directed, as in the owner of makes important investment decisions regarding their own retirement account. They allow you to place money in them every year and the tax is deferred until you start withdrawing money out.

The 2008 crash of the housing and stock markets put a lot of uncertainty into the air. People who relied on either the equity in their home or their stock portfolio as their retirement plan paid a huge cost for doing so. Due to this, precious metal IRAs such as a physical Platinum IRA have been steadily gaining in popularity. People who invest with these types of accounts get peace of mind knowing that there is a tangible asset backing their financial future. Hearing all the speculative moves the Wall Street tycoons make can make you uneasy. Experts agree it is often best to have more control over your financial future and physical platinum IRAs give you just that.

Why Invest In Physical Platinum?

Platinum has never been worthless and likely never will due to it being an industrial metal and available in finite amounts. Nearly 50 percent of platinum sold is used in automobiles. Also, about 25 percent of platinum currently sold is used in other non-automotive industrial uses such as making electrodes, anticancer drugs and even certain types of turbine engines. This assures investors that platinum isn’t going anywhere anytime soon.  Platinum can also be combined with your gold investments and silver investments.

Today, Platinum is worth nearly four times as much as it was worth 20 years ago in 1993. It has generally been on a slow and steady increase for quite a long time. This experts believe makes for an ideal investment opportunity. Retirement investors don’t want a volatile investment opportunity that may or may not blow up in their face. A slow and steady rate of return is usually preferred for this kind of long term use.  Contact a precious metals expert that is able to help you get started with your investments.
Most people worry about their retirement due to the instability of the economy. If you have an IRA, you have probably heard that it can be protected by use of platinum. But what is a platinum backed IRA? To start with, following the recent collapse of the economy, many IRA owners have started re-examining the viability of investing in bonds, stocks and mutual funds as has been the case traditionally. People are after stability but these markets are very unstable. In order to safeguard their retirement savings, they are backing their gold IRAs by investing in precious metals like platinum, gold, silver and palladium.

Platinum backed IRA, as the name suggests, is an IRA that is backed with platinum. Like other precious metals, its value is hardly affected by any economic crisis and the resultant effects. This means the value of your retirement savings is not affected even if the economy runs into a crisis. It holds its value in spite of inflation and devaluation. Backing an IRA with platinum is one of the best ways to make it to mitigate potential risks.

Two of the biggest risks facing retirement savers are instability in the financial markets and inflation. If the recent Global Financial Crisis has taught investors anything, it is that the risk associated with the stock market is not to be underestimated. Inflation is also another worrying concern as central banks worldwide continue to print money in order to kick start sluggish economies.

How Does A Platinum Backed IRA Work?

It is no surprise that investors are looking for other ways to protect their retirement savings. One of the ways that they are doing this is to use precious metal backed IRAs. An IRA or Individual Retirement Account is vehicle that investors can use to save for retirement in a tax efficient way. Generally any gains are not taxed until the investments are accessed after retirement. IRAs can be composed of whatever investments the holder selects including mutual funds, stocks, REITs, bonds and of course certain types of precious metals.

Up until 1997 if you wanted to establish a precious metals IRA it could only hold gold or silver eagles. However that year saw the introduction of platinum onto the list of metals which can be held in an IRA. The type of metals which can be held be an IRA are still limited, which speaks to the perceived stability and inherent value of platinum as investment.

In order for platinum backed IRA to be established the bullion needs to be held by a third party. This is typically either a custodian or a trust company. The trust company will charge fees for the service of holding and protecting the platinum in its vaults. The platinum must continue to be held in the vaults for the life of the IRA. It is also important to note that in order for platinum to be held in an IRA it must be 99.5% pure.

Whether you are concerned about the risks associated with stocks, bonds and real estate or you simply think that Platinum will make for a good investment, you should take a careful look at platinum backed IRAs. The tax advantages of doing so are significant.

Are Platinum Backed IRAs Safe?

Platinum is available in medical equipments, automobile parts and computer machines. It is a major element in green technologies for autos comprising catalytic converters because of its capability to withstand rust and extreme temperatures.

It has been drawing a great deal of interest. The platinum has retained purchasing power regardless of financial conditions. Maybe you have thought at some point, are platinum backed IRAs safe? Based on latest activities on the globe economies over the past few years, platinum backed IRAs have gained reliability and popularity among many investors. Investing in precious metal like platinum is a trend to protection and an asylum of security.

Normally, purchasing platinum precious metal is at all times safe investment since it is buying a natural resource that is prepared and it has many and varied applications. Platinum is used in several fields of human ventures, hence you can be guaranteed that buying it is a secure, sure and intelligent investment.

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