A precious metals IRA is a self-directed individual retirement account that holds physical gold, silver, platinum, or palladium. It is not a separate kind of account. The tax code treats most metal an IRA buys as a collectible, and a collectible purchase counts as a distribution. Section 408(m)(3) admits two groups of products: certain US coins, and bullion that meets the fineness a futures exchange requires for delivery. The four metals share the account rules. They differ in their records, their volatility, what drives demand, and how easily they sell.
Key takeaways
- Same account, same limits. A precious metals IRA is a self-directed IRA with a custodian, a dealer, and a depository. The 2026 contribution limit is $7,500, or $8,600 at age 50 or older, the same as any IRA.
- Four metals, one statute. Bullion must assay to at least 995 fineness for gold, 999 for silver, and 99.95% for platinum and palladium, and must sit in the trustee’s possession. The statute reaches the Gold, Silver, and Platinum Eagles by cross-reference.
- The records differ. From August 2016 to August 2026, gold returned 9.0% a year after inflation and platinum 1.3%. Over twenty years, platinum lost 0.6% a year in real terms while gold and silver gained.
- Costs change with the metal. Spreads, storage billing, and product acceptance vary by dealer, custodian, and depository. Ask for buy and buyback prices for each product, in writing.
One account, four metals
A precious metals IRA runs on the same structure as any gold IRA: a self-directed account with a custodian holding title, a dealer selling the metal, and a depository storing it. Section 408(m)(1) of the Internal Revenue Code treats an IRA’s purchase of a collectible as a distribution of its cost. Section 408(m)(2) places any metal or gem, and any stamp or coin, in the collectible definition. Two exceptions follow in 408(m)(3). Paragraph (A) admits certain US coins: the gold coins described in 31 U.S.C. 5112(a)(7)–(10), the silver coin in 5112(e), the platinum coin in 5112(k), and coins issued under state law. Paragraph (B) admits gold, silver, platinum, or palladium bullion whose fineness meets or exceeds the minimum a contract market requires for delivery of a regulated futures contract, if the bullion is in the physical possession of the IRA trustee. Contribution limits do not depend on the holdings. For 2026, the IRS allows $7,500 across all of a person’s traditional and Roth IRAs, $8,600 at age 50 or older, or taxable compensation if less. The pages on what a gold IRA is and self-directed gold IRAs cover the account mechanics.
What each metal must meet
The minimums come from CME Group contract specifications for each metal’s futures contract, read on September 24, 2026: gold “shall assay to a minimum of 995 fineness”, silver “shall assay to a minimum of 999 fineness”, platinum “shall be a minimum of 99.95% pure”, and palladium the same.
| Metal | Minimum fineness for bullion | US coin named in 408(m)(3)(A) |
|---|---|---|
| Gold | 995 | American Gold Eagle, 31 U.S.C. 5112(a)(7)–(10) |
| Silver | 999 | American Silver Eagle, 5112(e) |
| Platinum | 99.95% | American Platinum Eagle, 5112(k) |
| Palladium | 99.95% | None; the palladium Eagle, 5112(a)(12), is .9995 fine |
The palladium coin needs its own note. The American Palladium Eagle, a $25 coin of one troy ounce at .9995 fineness under 31 U.S.C. 5112(a)(12), is not named in 408(m)(3)(A). Its route into an IRA is the bullion fineness test in 408(m)(3)(B), which .9995 fineness meets. Confirm with the custodian and the depository that each accepts the coin before buying. The bullion test carries a second condition: physical possession by the trustee. In McNulty v. Commissioner, 157 T.C. No. 10 (2021), the Tax Court held that an IRA owner who took possession of coins the IRA had bought had received a distribution. The product-by-product list of IRA-eligible gold shows which products pass, and the home storage page covers the possession rule in detail.
The record, side by side
A note on method first. The return, volatility, drawdown, and correlation figures here are computed by this site from World Bank Commodity Price Data (the Pink Sheet), monthly average gold, silver, and platinum prices in US dollars per troy ounce, downloaded on September 24, 2026, deflated with the Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (series CUSR0000SA0). “Real” means after inflation. Volatility is the annualized standard deviation of monthly log changes. The price series begin in January 1960. The World Bank set does not include palladium, so no palladium return figures appear on this page.
Figures run to August 2026.
| Gold | Silver | Platinum | |
|---|---|---|---|
| Real growth a year, from August 2016 | 9.0% | 9.2% | 1.3% |
| Real growth a year, from August 2006 | 7.5% | 6.1% | −0.6% |
| Volatility, 1960–2026 | 15.2% | 26.0% | 18.8% |
| Volatility, last 10 years | 12.1% | 26.1% | 23.0% |
| Largest fall in the last 20 years | 39.3%, Sep 2011 to Dec 2015 | 67.0%, Apr 2011 to Dec 2015 | 63.3%, May 2008 to Apr 2020 |
Monthly average anchor prices: in August 2006, gold at $633, silver at $12.20, and platinum at $1,234; in August 2016, gold at $1,340, silver at $19.60, and platinum at $1,122; in August 2026, gold at $4,411, silver at $65.40, and platinum at $1,780.
Platinum’s highest monthly average in the series was $2,434, in January 2026; August 2026 stood 26.9% below it. Platinum last averaged at or above the gold price in December 2014. In August 2026, an ounce of platinum cost 0.40 of an ounce of gold.
The reading the table supports: over twenty years, platinum lost purchasing power while gold and silver gained, and platinum swung more than gold. Palladium does not appear in the table because the World Bank series does not cover it.
Do the metals diversify each other
A correlation of 1 means two prices always move together; 0 means no relation between them. On monthly price changes from 1960 to 2026, gold and silver correlate at 0.69, gold and platinum at 0.56, and silver and platinum at 0.65. Over the last ten years, the pairs read 0.72 for gold and silver, 0.51 for gold and platinum, and 0.80 for silver and platinum.
Two patterns stand out. Platinum has moved with gold less than silver has. Over the last ten years, platinum has moved more closely with silver than with gold. The gold-versus-silver comparison and the gold-to-silver ratio set the two-metal question out in more detail.
Why platinum and palladium behave differently
The USGS Mineral Commodity Summaries 2026, in its platinum-group metals chapter, describes demand and supply. The leading US use of platinum-group metals is catalytic converters that cut vehicle emissions. Other uses include catalysts for chemical and petroleum refining, dental and medical devices, electronics, glass manufacturing, investment, jewelry, and laboratory equipment. Domestic supply is small: one company, in Montana, mined platinum-group metals in the United States in 2025. Estimated US net import reliance in 2025 was 89% for platinum and 57% for palladium.
The consequence, stated without a forecast: the prices of these two metals rest on industrial, mostly automotive, demand and on a small number of supplying countries. Gold’s price does not rest on industrial demand in the same way.
Costs that change with the metal
No figures appear in this section, because every dealer sets its own prices. A dealer sells above the spot price and buys back below it, and the Commodity Futures Trading Commission’s metals advisory states that each dealer sets its own spread. Thinner markets can mean wider spreads and fewer buyers when it is time to sell. Not every dealer stocks all four metals, and not every custodian or depository accepts each product. Storage is billed on value or on volume, and silver’s bulk costs more to store per dollar of metal; the depository guide and the fees breakdown lay out the cost layers. Before buying, ask each dealer for the buy price and the buyback price of each product, per metal, in writing. The spread and buyback guide explains what to compare.
Taxes and distributions do not depend on the metal
Tax treatment follows the account, not the metal inside it. A distribution of metal in kind is valued at fair market value on the date it leaves the account. Required minimum distributions apply to a traditional precious metals IRA as they do to any traditional IRA. The tax rules page and the RMD and in-kind distribution page cover the mechanics. One failure mode sits in the statute: buying a product that does not meet the exception is treated as a distribution of its cost under 408(m)(1).
Questions before adding a second metal
This is a checklist, not a recommendation. The answers belong to the reader. For the dealer-side questions, see how to compare gold IRA providers.
- What job is each metal meant to do? A second metal needs a reason of its own.
- Could you hold through a 63% fall and twenty years of real loss? Platinum has had both in the last twenty years.
- Does the custodian accept the exact product, and will the depository store it?
- What are the dealer’s buy and buyback prices for that product, in writing?
- How is storage billed: on value or on volume?
The due diligence checklist organizes the verification step by step, and the scams page lists the schemes and the checks that expose them.
Related research
Background on each part of the decision:
- What is a gold IRA?: the account, end to end.
- Self-directed gold IRAs: how self-direction works.
- Gold and silver IRA: the two-metal account.
- IRA-eligible gold: which products pass.
- Home storage gold IRA: the possession rule.
- Gold IRA custodians: who holds title.
- Gold IRA depositories: where metal sits.
- Gold IRA fees: the cost layers.
- Gold IRA spread and buyback: pricing to compare.
- Gold IRA tax rules: treatment by account.
- Gold IRA RMDs and in-kind distributions: taking metal out.
- Gold vs silver: two records, side by side.
- Gold-to-silver ratio: reading the spread between them.
- Gold IRA due diligence checklist: verification before purchase.
- Gold IRA scams: schemes and the checks that expose them.
Frequently asked questions
What is a precious metals IRA?
A self-directed IRA that holds physical gold, silver, platinum, or palladium. Section 408(m)(3) of the Internal Revenue Code admits the metals: named US coins, and bullion that meets the fineness a contract market requires for delivery of a regulated futures contract, in the trustee's physical possession.
Can an IRA hold platinum and palladium?
Yes. Bullion of 99.95% fineness or better qualifies under the statute's bullion test when the trustee holds it. The American Platinum Eagle is named in 408(m)(3)(A). The American Palladium Eagle is not named, but its .9995 fineness meets the bullion test. Confirm the exact product with the custodian and the depository before buying.
Is a precious metals IRA different from a gold IRA?
No. It is the same self-directed account under the same rules, with a wider choice of metal. Contribution limits, tax treatment, and distribution rules are identical.
How much can I put into a precious metals IRA in 2026?
The IRS limit for 2026 is $7,500 across all traditional and Roth IRAs, or $8,600 at age 50 or older, or taxable compensation if less. The limit is the same whatever the IRA holds.
Has platinum kept up with gold?
Not on this site's calculation from World Bank monthly prices. From August 2016 to August 2026, platinum grew 1.3% a year after inflation, against gold's 9.0%. From August 2006, platinum lost 0.6% a year in real terms, against gold's 7.5%.
Can I store precious metals IRA holdings at home?
No. The bullion exception requires the metal to be in the physical possession of the IRA trustee. In McNulty v. Commissioner (2021), the Tax Court held that an IRA owner who took possession of IRA-purchased coins had received a distribution.