This is a standard problem in university physics, which I studied at university in depth. With higher concepts like angular momentum, it is fairly straightforward to explain the motion.
However, one of my students (who is below uni level) recently asked me a basic question about the system, and I was embarassed to realise that I didn't have a good answer for him.
We know that if you analyse any part of the system separately, the forces on the centre of mass must be in the same direction as the acceleration of the centre of mass. Let's just take the wheel itself (not the rod). There is a centripetal force, supplied by the rod, and the weight of the wheel. But in order for the wheel to only precess, and not fall, there must be an upwards force balancing out the weight of the wheel. What provides that force?
There is only one possible answer, given that the wheel is only in contact with the rod, and that is that the rod somehow provides an upwards force as well as a centripetal force. Is this correct?
This is what I told my student, and he then asked how that can work. It is not a well formed question, but I nevertheless am in search of a better explanation for this specific part of the problem.