Precious Metals IRA Guide: Gold, Silver, Platinum and Palladium

What a Precious Metals IRA Is

A Precious Metals IRA is a self-directed IRA (SDIRA) that holds physical precious metals rather than conventional assets like stocks, bonds, or mutual funds. The IRS permits four metals in these accounts: gold, silver, platinum, and palladium — provided each meets specific purity requirements under IRC Section 408(m)(3).

The account follows all the same contribution limits, distribution rules, tax treatment, and RMD requirements as a conventional IRA. What differs is the asset held, the type of custodian required, and the need for physical storage at an approved depository.

The Four Eligible Precious Metals: IRS Requirements

Gold in a Precious Metals IRA

Gold is the most common precious metal held in self-directed IRAs and the most widely researched. It has a long history as a store of value, a large and liquid global market, and relatively high value density (less physical space per dollar compared to silver). For educational detail on gold IRA eligibility, see our IRA Eligible Gold guide.

Silver in a Precious Metals IRA

Silver is the second most commonly researched precious metal for IRAs. It is less expensive per ounce than gold, making it accessible in smaller dollar amounts. However, silver is more volatile in price, requires more physical storage space per dollar of value, and has significant industrial demand that gold largely does not have. See our Gold vs Silver comparison.

Platinum in a Precious Metals IRA

Platinum is eligible for self-directed IRAs at 0.9995 fineness. It is much rarer than gold or silver, with the majority of global production concentrated in South Africa and Russia. Platinum has significant industrial applications — particularly in catalytic converters for automobiles — making its price sensitive to automotive industry trends and environmental regulations. Platinum can trade above or below gold's price depending on supply and demand conditions.

Palladium in a Precious Metals IRA

Palladium is also eligible at 0.9995 fineness. Like platinum, palladium is used extensively in catalytic converters and has a small, concentrated supply. Palladium is among the most volatile of the four eligible metals. Its price has experienced dramatic swings tied to automotive production forecasts, supply disruptions, and substitution risk (if platinum replaces palladium in catalysts).

Palladium is rarely the primary holding in a precious metals IRA and is generally discussed as a speculative allocation within a broader precious metals strategy.

Custodian Requirements for Precious Metals IRAs

All four metals require the same infrastructure: an IRS-approved specialized custodian and storage at an approved depository. The custodian administers the account, handles IRS reporting, and executes purchases through approved dealers. Standard brokerage IRA custodians do not offer these services.

When evaluating custodians for a precious metals IRA, request:

• Written fee schedule (all fees, not just headline rates)
• List of supported metals and approved products
• List of depositories they work with and their insurance details
• Process and timeline for distributions
• Their regulatory standing

Fees for a Precious Metals IRA

All precious metals IRAs carry fees that conventional IRAs do not:

• Account setup fee (one-time)
• Annual custodian administration fee
• Storage fee at the depository (annual; varies by metal weight/volume)
• Transaction fees when buying or selling metals
• Dealer premiums above spot price when purchasing

These fees apply regardless of metal price performance. For a full discussion, see our Gold IRA Fees guide.

Risks of Precious Metals IRAs

• Market price risk: All four metals can decline significantly in value.
• Concentration risk: Heavy allocation to precious metals reduces diversification.
• Liquidity risk: Physical metals are slower to liquidate than stocks or bonds.
• Fee drag: Annual fees reduce net returns regardless of price performance.
• Custodian/dealer risk: Not all providers operate with integrity — due diligence matters.

Key Takeaways

• Precious Metals IRAs can hold gold, silver, platinum, and palladium — all meeting specific IRS purity standards.
• A specialized custodian and approved depository are required for all four metals.
• All four metals carry price volatility; none guarantees positive returns.
• Fees apply at multiple layers; model total costs before committing.
• IRA contribution limits and distribution rules are identical to other IRAs.
• Consult a qualified financial professional before opening a precious metals IRA.