Silver has been used as a currency for over a thousand years and is one of the most in-demand precious metals for industrial use. Silver is a shiny metal that is easy on the eyes, while also being resistant so it can withstand impacts to a certain extent. It won’t tarnish or corrode easily, making it a superb store of value over long periods of time. It has the highest electrical and thermal conductivity of all metals, and the lowest contact resistance while still remaining malleable and easy to manipulate.
Due to the abundant natural qualities possessed by silver, this precious metal is widely used in many products and industries including but not limited to: batteries, dentistry, medicine, photography, nuclear reactors, photovoltaic energy (solar energy), microchips, water purification, and in auto parts like the catalytic converter.
Silver is a precious metal that can also be used as a form of investment. Many investors and precious metal enthusiasts turn to silver as a portfolio diversifier as they believe it to be a safe haven asset during times of economic uncertainty.
In the United States, silver is one of the precious metals that can be used to fund a retirement plan, along with gold, platinum, and palladium. US citizens can use bullion coins, bars, or rounds to fund their individual retirement account.
Below, you will find an introductory explanation of Silver IRAs, which products could be used to fund them, and how to set up an account for yourself.
What is a Silver IRA?
A Silver IRA is a self-directed retirement account in which an individual chooses to fund with silver versus more traditional means such as stocks and bonds. IRA stands for individual retirement account and unlike a conventional IRA, self-directed accounts are a variation of an IRA in which the holder manages the assets themselves. This means they can resort to a wider range of investments to fund their account, including precious metals and real estate. This also means that the diligence of research and decision making lies on the hands of the IRA holder themselves.
Types of Bullion IRAs
A self-directed IRA, or SDIRA, can be either a traditional IRA or a Roth IRA.
Traditional IRAs are funded using pre-tax income. The investment grows free of capital gains or dividend income taxes until the moment it is withdrawn upon retirement age (currently 59.5 years).
On the other hand, a Roth IRA can be funded with after-tax income, meaning the earnings in the account will be tax-free and will remain that way after the holder decides to withdraw it upon retiring.
The key difference between the two types of retirement account is the moment when the IRA holder pays taxes. With a traditional IRA, taxes are due with the action of withdrawing after retirement. With a Roth IRA, taxes are paid prior to the funding of the account.
What are the benefits of a Silver IRA?
As mentioned above, investing in physical silver bullion could have many benefits. Long-term projections suggest silver prices could remain high. Much like gold, it tends to perform well during a bear market. The reason is that investors seek out silver, among other precious metals, as a tangible asset that is easy to liquidate and could be a hedge against market volatility, inflation, and fiat currency devaluation.
Silver has historically been used as currency or the backing of currency, even in the US until the ending of the silver standard. Many believe silver could still be used for currency as a last resort in case of a widespread economic collapse.
Furthermore, individuals can make good use of the tax advantages cited in the previous section to build a diverse portfolio, aiming for financial stability and the actual ability to rest in their retirement years.
Finally, all 50 american states provide some extent of protection against garnishment in IRAs. Business owners and self-employed individuals will frequently hold IRAs in order to maintain their retirement savings creditor exempt.
Click here to learn more about Gold IRAs protection statutes from the 50 states.
Which precious metals products are IRA approved?
The department responsible for establishing the rules on using precious metals in IRAs is the IRS (Internal Revenue Service). The IRS states that a silver bullion product must be of .999 or greater purity in order for it to be eligible for use in an IRA. For gold the minimum purity is .995 whereas platinum and palladium bullion both must have a minimum purity of .9995.
Pre-1965 90% silver coins are one example of silver bullion not approved for silver IRAs.
SD Bullion offers a variety of silver coins and silver bars that could be used to fund a retirement account. This page compiles products from our inventory that are IRA approved.
Popular IRA-approved Silver Bullion
Many 99.9% pure silver bars from private mints are popular among investors when it comes to Silver IRAs. Those include silver bars from international manufacturers, such as PAMP Suisse or Valcambi Suisse, but bars from domestic mints such as Scottsdale Mint and Sunshine Mint are very popular as well.
Nonetheless, silver bullion coins are typically the most popular choice by investors. They are issued and minted by a sovereign government, meaning they are legal tender within their country of issuing and carry a face value.
The following is a list of the most popular products among our customers for IRA purposes:
- Royal Canadian Mint Silver Bar
- Perth Mint Silver Bar
- Scottsdale Mint Silver Bar
- Sunshine Mint Silver Bar
- PAMP Suisse Silver Bar
- Valcambi Suisse Silver Bar
How to set up a Silver IRA?
If you wish to set up and fund an IRA with silver, you should know that you will not be able retain physical possession of the metals yourself. Silver Bullion IRAs require a qualified IRA Custodian or IRA Trustee to hold the physical precious metals for you.
You can learn more about how to start your own precious metals retirement account on our Gold & Silver IRA page. You will also find a list of recommended IRA custodians to research and choose from.
The final step is choosing a trusted precious metals dealer. SD Bullion is in the business for over 8 years earning an A+ rating from the Better Business Bureau and we pride ourselves on our more than 50,000 positive customer reviews. For more help or information regarding Silver backed IRAs, you can contact our customer support team at 1(800)294-8732, via email at email@example.com, or through live web chat. We are available to assist you Monday through Thursday from 8AM to 6 PM ET, and Friday from 8AM to 5PM ET.