Gold bars and coins, and indeed online bullion accounts, can also be held in the UK as part of a Self-Invested Personal Pension (SIPP), a government-approved personal pension scheme that groups or ‘wraps’ assets, allowing tax rebates on contributions, subject to certain limits and conditions concerning accessibility. A SIPP allows an individual to make investment choices from the full range of investments approved by Her Majesty’s Revenue and Customs and can give private investors a greater choice of investments to include in a portfolio than personal pension schemes. Shares in platinum ETFs can be held in both an IRA and a SIPP.
Long-term savers in the UK can also include platinum ETF shares in an Individual Savings Account (ISA) another useful tool for retirement planning alongside pensions, also with tax advantages. The Japanese equivalent, the NISA account, is a ‘wrapper’ that has tax benefits (with a given annual limit), that can include platinum ETF holdings too.
Also in Japan, Platinum Accumulation Plans (PAPs) have been available to investors since the early 1980s, enabling individuals to pay a monthly amount into an account in order to purchase platinum, a core part of their retirement savings.
As an investment asset, platinum is similar to gold in as much as it has a low correlation with other financial assets, particularly bonds, making it a valuable tool for portfolio diversification and risk management. It also has some value as a hedge against inflation and currency risk.
Platinum has traditionally traded at a premium to gold - prized as it is for its greater rarity and diverse industrial uses. At present – one of only a handful of times in a generation – the platinum price is currently below that of gold, offering buyers an attractive entry point into platinum.