What Is A Silver IRA?

A silver IRA is just like the individual retirement account that you may already have, except that it is self-directed. This allows you to own physical silver bars and coins—as well as paper investments—inside of your IRA. Precious metals IRAs are a popular option for investors just like you who want to build a portfolio of physical silver safely, securely, and hassle-free inside of a silver IRA.   

At Advantage Gold, we focus on reducing the friction so you can focus on what matters: your financial health. 

How is a Silver IRA Different From a Conventional IRA? 

You may already be familiar with a conventional IRA. A conventional IRA allows you to own paper investment products—typically stocks, bonds, and treasury notes—on a tax-deferred or after-tax basis. Unlike conventional IRAs, self-directed IRAs allow you to pick and choose specific assets to own in your IRA. 

As a self-directed retirement account, a silver IRA gives you more choices including physical assets such as real, physical silver bars and coins. Silver IRA customers typically want to acquire a tangible asset—something that they can reach out and touch if they ever feel the need—while safely storing it in the best vaults in the world. They also want to use the funds already allocated for tax deferred investing to do so. A silver IRA is the go-to method that satisfies those needs.  

Of course, you can still own all the paper assets that you want in your Advantage Gold Silver IRA. You maintain full control over your portfolio while having the peace of mind of knowing that your silver bars and silver coins, the world’s oldest currency, are the anchor of your investments.  

Types of Silver IRA Accounts

Much like with gold IRAs, investors have three specific types of silver IRA accounts to choose from: traditional, Roth, and Simplified Employee Pension (SEP) IRAs: 

• Traditional IRAs feature tax-deductible contributions, but investors must pay taxes upon withdrawal when they retire. 
• Roth IRAs allow investors to contribute after-tax dollars, which makes those retirement withdrawals tax-free. 
• SEP IRAs allow self-employed workers to save for retirement while also enjoying tax-deductible contributions. 

Not all IRA custodians allow all types of precious metals IRAs. Research your chosen company’s options before you select one.  

Benefits of a Silver IRA

People often ask about the benefits of a Silver IRA. While the answer varies according to an individual’s needs, some benefits of a Silver IRA are universal. 

Physical silver ownership within an IRA allows you to: 

• Own an in-demand, generally undervalued precious metal in its physical form. 
• Add true diversification to your portfolio. 
• Help protect your wealth from runaway inflation. 

Demand for Silver is High

Thanks to its multiple industrial and commercial uses, such as in technology and jewelry, demand for silver has continued to outpace availability. This has resulted in manufacturing delays, processing chip shortages, and product availability. Even the U.S. Mint isn’t immune, ceasing production of coins for a spell. This has resulted in dramatic price increases. 

Silver is Generally Undervalued

We believe that as the industrial uses for silver continue to expand, demand will far outpace the supply. Silver prices may test their all-time highs in the near future, especially as solar panels (which need silver to operate) become more popular and 5G technology expands. 

Silver Can Help Diversify Your Portfolio

Unlike traditional stocks and bonds that pertain to healthcare, utilities, and technology, physical precious metals ownership reduces the exposure to the liability of a failing stock market. It’s a tangible asset that is not directly tied to stock performance. 

Silver Can Help Protect Your Wealth From Inflation

Silver IRAs can help protect your assets from runaway inflation. It’s a physical hedge against these pressures. Most of the products in high demand rely on silver, like cars, solar panels, and electronics. It’s also globally recognized and valued. 

Disadvantages of a Silver IRA

Even though a silver IRA has plenty of benefits, you may want to consider the following potential risks as you plan your investment strategy: 

• Lack of liquidity: As a physical asset, silver may not be as easily converted into cash as other assets, like stocks or bonds. 
• Storage and insurance costs: Physical silver must be stored in an IRS-approved depository, which may incur additional costs. You must also typically purchase insurance to protect against loss or theft. 
• Fluctuating market prices: The price of silver can be volatile and subject to different influences like the global economy, supply and demand, and investor sentiment. 
• Risk of fraud or counterfeiting: There’s always a risk of counterfeiting when dealing with physical assets. 
• Lack of dividends: Unlike stocks, silver doesn’t generate investment income like dividends. 
• Limited appreciation potential: While silver is a great hedge against inflation, its appreciation potential may be limited compared with other investments. 
• Tax implications: IRAs offer tax advantages, but you may be subject to fees or tax implications if you don’t follow the rules. Taking possession of your silver prior to turning 59 ½ can lead to penalties. 

How to Invest a Silver IRA

If you know a silver IRA makes sense for you, it’s time to move funds into that IRA. While you can use cash to fund your IRA, it may not make the most sense because those dollars have already been taxed. Instead, consider other options, like a rollover. 

Can I Rollover an Existing Account into a Silver IRA?

One of the best ways to fund a silver IRA is to perform a rollover from an existing IRA. A Silver IRA rollover is tax-free and penalty-free. The custodian will transfer your assets. For example, if you have $50,000 in your existing account, you will have $50,000 in your newly rolled-over account. You will then be able to pick and choose how you would like the funds invested.  

Once you roll your existing IRA funds into the silver IRA, you have 60 days to complete the process. Failure to do so leads to a 10% penalty for early withdrawal. 

What Types of Silver Can Be in My Silver IRA?

Your Silver IRA rollover allows you to own physical silver, including bars and coins. Once you open the account, your personal account executive will walk you through the benefits of each silver coin and silver bar. Not all silver is eligible, however. IRS regulations dictate the following guidelines: 

• All silver must be 99.9% pure (no junk silver allowed). 
• Bars and rounds must be produced by approved mints and within exact weight limits. 
• Coins must be in mint condition and accompanied by certificates of authenticity and original packaging. 

Even with these rules in place, investors have several available options for inclusion in their silver IRA. IRS-approved silver coins that you can purchase today include: 

• Canadian Moose Silver Bullion Coins 
• Canadian Great-Horned Owl Silver Bullion Coins 
• Canadian Woodland Caribou Silver Bullion Coins 
• Wolverine Silver Bullion Coins 
• American Silver Eagle Proof Coins 
• Austrian Silver Philharmonic Coins 
• American Silver Eagle Bullion Coins 

If you have questions about IRA-eligible silver coins or bars, your custodian and Advantage Gold account representative can help answer them. 

Open your Silver IRA with Advantage Gold today

Advantage Gold is the industry leader and highest-rated silver IRA company in the business. Our process is simple: We will do most of the work for you, and you will quickly and effortlessly own physical silver bars and silver coins inside of your silver IRA.  

Contact us today, and an account executive will contact you to answer your questions and walk you through the process. You may also call us with any questions. We look forward to serving and welcoming you to the Advantage Gold family.