More Americans are currently retiring or planning to retire later in life than ever before. If you're in a younger generation or aren't quite at that point in your life yet, retirement may not always be on your mind, but it will be a critical part of your goals in a few years.
IRA silver investments can help you retire comfortably with the funds needed to sustain a quality lifestyle. Read on to learn the ins and outs of precious metal IRAs, what makes silver bullion an IRA-eligible investment, and how you can choose the right metals to fit your needs.
A Run-Down on Precious Metal IRAs
An individual retirement account (IRA) is a tax-advantaged investment system. IRAs help people store money and assets until they retire without being taxed on them. Once they do, they can retrieve cash, liquidate assets, and fund a happy and relaxing retirement.
A precious metal IRA is a specific self-directed IRA type. You purchase precious metals and add them to your retirement account. Over time, they will likely grow in value, so you can redeem them for a higher price than you initially paid upon your retirement.
A precious metal IRA has the same contribution limits as traditional IRA plans. You will need to choose a custodian to hold the precious metals in a storage facility in addition to a company that manages your IRA. You cannot store them at home.
At this point, you get to choose the type of metals to invest in. Your custodian will buy these metals on your behalf and store them in an account separate from the other precious metals you invest in. They're segregated because IRS regulations apply to them in a way that they don't apply to your other assets.
A knowledgeable and experienced custodian can guide you through this process. Your main task is to choose what precious metals to invest in.
Silver is one of the best.
What Is IRA-Approved Silver?
When you put silver bullion into your retirement accounts, it must meet certain IRA regulations.
Purity is extremely important for those looking to add silver to their retirement plan. IRA-eligible silver products must be at least 99.9% pure.
It's also important that silver going into a retirement account has the appropriate certification to gain status as one of the IRA allowable precious metals. The national government mint or another government-sponsored organization must accredit the manufacturer or refiner producing the metal. Some companies that can accredit producers include ISO 9000, NYMEX, COMEX, LME, and LMBA.
If you are working with small bullion silver bars, they must be manufactured to weight specifications under 1000 ounces. Bullion coins that do not have numismatic value also need to be in mint condition. If they have been circulated or damaged, they are not IRA-eligible.
Proof coins that have collector/numismatic value can also qualify for an IRA. However, it needs to be in its original mint packaging and remain untouched and uncirculated. It also needs to include a certificate of authenticity in order to be valid.
Why a Precious Metal IRA?
Precious metal IRAs are long-term investment strategies. This is partly because they let you diversify your retirement portfolio and retain a hedge against other investments failing. Precious metal markets tend to move in the opposite direction of stock market prices, which gives you a cushion if some of your stock investments go bust.
This is partly because precious metals are a tangible investment. When inflation happens and the dollar loses value, people seek out gold and silver because they have intrinsic value.
This value isn't assigned by a government or bank. It exists because the metal is useful, rare, beautiful, or necessary for industrial applications. The intrinsic worth can't be removed.
So, a precious metal IRA is a hedge against inflation. You protect your portfolio with a tangible asset.
You'll also get tax benefits when you use IRA-eligible silver and gold as a retirement investment. Those in certain tax brackets can claim contributions as tax-deductible. You'll also generally get the same tax benefits as those with conventional IRAs.
Precious metal IRAs are also popular because they're self-directed, so you're the one in control of your assets. You do need a custodian, but you can still take complete control of your retirement account by choosing the metals that your custodian buys for you. You also aren't restricted to traditional assets, so you can have a more diverse portfolio and better asset mix.
Why Invest in Silver?
Gold makes a great IRA investment because it holds value in the same way that silver does. However, it's a much higher upfront investment. You could pay $2000 for an ounce of gold and $24 for that same quantity of silver.
Gold isn't a realistic investment for a lot of people, and you don't want to strain yourself unnecessarily when saving for retirement. If you want to play things safe with a low upfront investment, silver is an excellent choice.
Silver also is in extremely high demand right now. It has applications in a wide range of industries including manufacturing, construction, and automotive markets. Because it can be melted down to make machine parts and components, it's extremely useful and you're sure to find buyers in the future.
Besides, there are a wide number of silver options available, so you will have the opportunity to build the perfect retirement portfolio to fit your needs.
The Value of Silver
Saying that silver never loses its intrinsic value is a bold claim, but it's true. In fact, it accrues additional value over time. You can sell it for more than you purchase it for.
As of late 2023, silver is worth about $23.49 per ounce. This is over a dollar more than it was worth last month and two dollars higher than one year ago.
Historically, silver has shown an incline in value over time. The market is volatile in the short term, and there are dips and fluctuations frequently. However, as the years pass, you're likely to sell your metal for more money in a decade or two.
Just make sure that you constantly monitor the market for the right time to sell. Look into expert market projections and perform your own research so you can make well-informed decisions. Sell when the value is at a peak so you can turn the highest possible profit.
Examples of IRA-Eligible Silver Products
There are many types of silver products that qualify as IRA-allowable precious metals. American Eagles, Canadian Maple Leafs, and Australian Kangaroo coins are all eligible. Brittania coins, Lunar Dragon rounds, and other collectibles also qualify.
You can also invest in silver bullion bars. They're fairly inexpensive because they lack numismatic value, but they are still valuable because of the silver's intrinsic worth. As the prices of silver increase, so will the worth of your bullion bars.
Note that some of these are currently in stock online while others are not. If you want something that's not currently available, ask the US Gold Bureau to send you a text or email when it's back in stock. Until then, there are a ton of other alternatives you're sure to love.
When shopping for retirement-oriented precious metals, look for the "IRA ELIGIBLE" note on the product page. This small checkmark symbol means that the item is pre-vetted and certified as one that meets all IRA requirements.
Select a Reputable Retailer for Your Precious Metal Investment
Once you know what you're planning to purchase, it's time to choose a reputable precious metals dealer. This is the best possible way to avoid scams. If you work with someone who knows what they're doing and has a lot of experience, you can trust their reputation and authenticity.
Make sure to read online reviews to learn more about the retailer you plan to purchase from. Learn about prices, product quality, and certification. This will let you make a more confident purchasing decision.
See IRA Documentation
Before purchasing silver, it's reasonable to ask the dealer for specifications and certification. You want to make an informed buying choice, and this is a great way to feel sure that you're getting a good deal.
The United States Gold Bureau transparently lists specifications for each product online. You can see the purity, mint, refinery, coin type, year, weight, and more. However, we're also happy to tell you more about prospective pieces before you purchase them so that you can feel looped in and excited about your IRA silver purchase.
Purchase IRA Silver Investments Today
Creating a precious metals IRA is a great way to save for your retirement. It diversifies your assets, gives you a reliable hedge against inflation, and is easy to begin purchasing online. Now that you know some reasons to buy IRA silver, it's time to begin shopping for your best great investment.
At the United States Gold Bureau, we're committed to helping you choose the perfect IRA-eligible precious metals for your savings. Contact us to learn more about our offerings and purchase quality silver bullion or coins at an affordable price.