You often hear about adding gold to your IRA but can I hold physical silver in my IRA? In recent years investors have been very inclined to invest in silver due to it’s massive upward potential.
Short answer: Yes. You can have physical gold in your IRA.
There is more to it though than to just buy some silver and put it in your IRA.
We will be discussing how it works to add physical silver to your IRA. What limitations you might have and how easy it is to do.
By the end of this post you will have enough knowledge to start the process of putting some of your retirement savings into physical silver.
Why should you have silver in your IRA?
Let’s quickly answer this question first.
Silver has been seen as money and a true store of wealth for thousands of years. Just like gold have. Silver have all of the great features that makes gold such an attractive investment.
It’s seen as a safe haven in rough economic times. When markets fail people tend to start purchasing precious metals in order to protect their wealth. If you think that the current system of debt is unsustainable and that you see rough economic times ahead then precious metals investing is the right thing for you.
During the stock market crash of 2008 people lost $2 TRILLION of retirement savings. This happened almost over a day. A new stock market crash is imminent and make sure that you place some of your savings into safe assets like gold and silver.
Besides the safety and the hedge against inflation that both gold and silver gives you there is a huge potential for higher profits with silver.
Now why would I say that?
Almost all electronics have silver in them. Silver is a great electrical conductor which is why all your phones, computers, cameras, solar panels, and everything else you can think of have silver in them.
Because we create so many electronics each year there is a huge demand for silver and this demand just keeps getting bigger.
The supply of silver can not keep up to this increasing demand. There is only so much silver in the earth and we can’t create more than we can mine each year.
What usually happens to a product that there is a huge demand for but a limited supply of?
The price goes up!
When a lot of people want something and there is not a lot of that product they will bid the price through the roof. This will, and is, happening to silver today.
If you think we will create more electronics in the future than we do today then you think that the demand for silver will increase.
If you want to know more about the difference, have a look at the gold vs. silver for investment post.
Unfortunately most retirement accounts only allow paper silver and you should stay away from that.
Most retirement accounts today like a 401(k), 403(b), 457(b), TSP and traditional IRAs do not allow you to have physical silver in your retirement account. The majority of people have one of these IRA account types.
These retirement accounts allow you to hold paper silver instead. This is a huge difference though because paper silver is traded just like a stock and it doesn’t give you all the security that you’re after when investing in physical precious metals.
What we mean with paper silver is often an Exchange Traded Fund (ETF). An example of this would be the SLV that’s trading on the COMEX platform.
Basically this means that you buy “stock” in a fund (SLV in this example) that supposedly store physical silver in their vaults. Then whenever you want you can take physical delivery of silver by selling your “stock” in the fund.
It has been proven over and over again that these funds don’t have enough physical silver in their vaults to cover all the stock they sell. If something would happen to the silver market and a lot of investors in these funds want to take physical delivery of their silver there just aren’t enough in the vaults.
A lot of people that thought they owned silver will be standing without any.
Investing in paper precious metals is not in line with how you should invest in precious metals. Like the title says: you want physical silver in your retirement account.
How can I hold physical silver in my IRA then?
Like we were talking about above you can’t have physical silver in any of the popular IRAs. What you need to do is to start a self-directed IRA.
A self-directed IRA works pretty much the same as all the other IRAs when it comes to taxes and other rules. There is one major thing that is different though.
With a self-directed IRA more trust is put on you to decide what investments you want to make for your retirement account. On all the regular IRAs you’re limited to invest in stocks, bonds and mutual funds.
With a self-directed IRA you can invest in other vehicles such as real-estate, gold, silver, oil, horses and intellectual property just to name a few.
This allows you to better diversify your retirement account. The reason you have to start a new account in order to do these investments is to give your consent that you are going to invest in non-conventional investment vehicles.
Once you have opened up your new self-directed IRA account you can transfer all, or part, of the funds in your current IRA. As soon as the funds are transferred you can purchase physical silver with it.
Does this sound complicated to you? Good, because it is. To do this yourself would not be an easy task and there are ways that you can save a lot of money in taxes if you do it correctly.
The best thing is that this is nothing that you have to do yourself. A good precious metals dealer will help you with all the paper works and guide you through the process.
After we have talked about what silver you can add to your IRA I will show you a way how you can get the process started today without doing anything yourself. You will have to sign two papers and then pick metals. Obviously you will be guided through the whole process with an individual support person.
Does that sound interesting? Great, let’s see what type of silver is allowed in your IRA first.
What type of silver bullion can I have in my IRA?
The silver that you are allowed to own in your self-directed IRA has to fulfill two requirements:
- It must be official currency of a recognized public entity.
- The silver must be of at least 0.995 percent purity.
What this means in easier terms is that the silver must come from some type of government entity and has to be viewed as legal tender.
The purity must be of at least 99.5% meaning that the bullion bar or coin has to contain that much silver and not be a mix of a lot of other metals.
Some example of silver coins and bullion that you can own in your self-directed IRA are:
- American Silver Eagle Coins
- Canadian Silver Maple Leaf Coins
- Australian Silver Kookaburra coins
- Chinese Silver Panda coins
- Austrian Silver Philharmonic Coins
- Mexican Libertad coins
- Silver Bars and Rounds that are produced by an approved refinery or national government mint.
Do not fall for this common scam!
A common scam that a lot of people fall for when they are adding precious metals to their retirement savings is to buy rare collector coins, often called numismatic coins.
There are dealers out there that try to sell you these “rare” coins. The only reason why is because they can add a big markup to the price.
I have heard a lot of horror stories of people thinking that they bought valuable rare coins but it turned out to be completely false. That way they paid maybe double the price for their silver.
Only purchase bullion and coins that are close to the current market price for that day. With a reputable dealer this will never be a problem.
How to get the process started today by almost doing nothing yourself.
As we were talking about before you should not do all of the paper work yourself if you’re not 100% sure about what you’re doing. And even then, why not let someone else do the heavy lifting for you?
I have been reviewing precious metals IRA companies for a while now and when it comes to helping people to add precious metals in their retirement savings account there is no one like Regal Assets.
Regal Assets have been in the precious metals business since 2003 and has received 0 complaints since then!
This is very unusual and when you look at all the other companies they have some good and some bad reviews. Try to search the Internet for yourself and you will see that there is only good reviews for Regal Assets.
They have been featured in Forbes Investment Guide and were ranked number 20 on Inc. 500 by Inc. Magazine in financial services.
They have also been featured on a lot of big networks like Reuters, MarketWatch, Bloomberg, Smart Money and a lot of other ones.
What sold me, and a lot of other reviewers, on Regal Assets is the fact that their support staff isn’t pushy at all. They truly try to help you and understand that this is a big decision for you.
You can call them up and get answers to all of your questions without having to buy anything. If you do decide to follow through with adding precious metals to your IRA they will do all the paper work for you and guide you all the way.
You will get a personal support staff member that will update you on every thing and someone that you can call whenever you want.
To get started today I would recommend that you read the full review of Regal Assets or download their free precious metals rollover guide to learn more about how it works. Or why not both?
Please leave any questions that you have in the comment section below and I will do my best to help you.
I hope we have answered the question: can I gold physical silver in my IRA and that you now know a lot more about adding precious metals to your IRA.