What is a Silver IRA?

Last Updated on February 7, 2023 by George

Disclaimer: If you use products or services based on our expert recommendations, we may receive a commission from the links in this post. Please take some time to read our Advertising Disclosure for more information.

A physical silver IRA is an individual retirement account in which the investor holds physical silver bullion instead of paper assets.

Physical silver IRAs are better than traditional paper asset IRAs in some ways, such as protecting you from inflation and currency devaluation.

Before we get started:

We know how hard it is to choose a business you can trust with your hard-earned money. So, we will give you as much helpful and informative information as possible so you can make the right choice.

We made a list of the investment companies we like best, so it would be easy for you to compare them and choose the one that fits your needs best.

Most IRAs invest in stocks, bonds, and other paper assets, but a physical silver IRA lets people invest in one of the oldest and most valuable forms of money.

Silver has been used as money for a long time, and its value has held up very well. Silver is returning as an investment as more people learn about its benefits.

Since a physical silver IRA is a real asset, it is not affected by changes like paper assets.

This means that investors’ retirement savings will be much more stable, and they won’t have to worry about losing their nest egg in a sudden market crash.

A silver IRA is another excellent way to protect yourself from inflation. Over time, the value of paper currencies tends to decrease because the government keeps printing more money, which lowers the value of each unit.

This is called “inflation,” If investors aren’t careful, it can eat away at their savings.

On the other hand, as inflation rises, silver tends to get more valuable. This is because there is only so much silver in the world, and it can’t be made more like paper money can.

As inflation increases, the worth of silver protects retirement savings from the effects of inflation.

A physical silver IRA is also a great way to protect yourself from the value of money going down. Paper currencies tend to lose value over time because governments print more money, diluting their currencies’ value.

This is called the “devaluation of the currency.” If an investor isn’t careful, it can wipe out their retirement savings.

A physical silver IRA is a great way to protect yourself from a drop in the currency’s value. Silver is priced in dollars, so even if the dollar value goes down, the price of silver won’t change.

That means currency devaluation won’t hurt retirement savings, even if things get terrible.

How To Open a Physical Silver IRA

A silver IRA is an excellent way to put your money to work. One of the oldest and most valuable forms of money. There are a few different ways to start an IRA with physical silver, and rolling over existing retirement accounts into a silver IRA is one option.

Setting up a new account and buying silver directly is another choice. The process is pretty easy if an investor wants to move money from an old retirement account to a new one.

They need to tell their current custodian that they want to move their money into a silver IRA. The custodian will take care of the rest, and there shouldn’t be any tax consequences or penalties.

Once they find a dealer, they can buy silver and give it to their custodian directly. When the silver gets to the custodian, it will be stored safely and covered in case it gets lost or stolen.

Investors can get their hands on the silver anytime or leave it alone and let its value rise over time.

Common Silver IRA Companies

Investors can set up and take care of a physical silver IRA with the help of some companies. Before choosing a company to work with, they need to research because not all dealers are the same.

Before making a choice, they must read reviews and compare prices. Some popular options are:

Company Equity Trust

Equity Trust Company is one of the most well-known companies that offer self-directed retirement accounts. They give investors a lot of different choices, such as precious metals. The business has been around since 1974, and its main office is in Ohio.

Regal Assets

Regal Assets is a well-known and popular gold and silver dealer in the United States. The company has many options for metals that can be put in an IRA, including physical silver.

Most orders are sent out within 24 hours, and all purchases come with free storage and insurance.

Gold Silver

The company was started in 2005 to give people a way to invest in precious metals without dealing with the high costs and trouble of a traditional dealer. Gold Silver has many metals that can be put in an IRA, including physical silver.

All purchases are backed by a 100% satisfaction guarantee, and the company ships all orders for free.

International Goldline

Goldline International is one of the largest and most well-known dealers of precious metals in the United States. The company sells a wide range of metals that can be put in an IRA, such as physical silver.

A price lock guarantee backs Goldline ships and stores all orders for free and all purchases. Goldline has helped people buy more than $5 billion worth of precious metals since 1960.

JM Bullion

JM Bullion is a dealer in precious metals that sells gold, silver, platinum, and palladium, which can be put in an IRA. All orders can be stored and shipped for free. The Better Business Bureau has given the company an A+ grade.

JM Bullion puts customer service as a top priority, and their website has a live chat option. It works with mints and distributors worldwide to ensure its customers get the best prices on precious metals.

Why You Should Consider a Physical Silver IRA

There are many good things about a physical silver IRA, but here are just a few reasons to add it to your retirement portfolio.

Silver is a real asset that can be held in the hands of investors, and this is a real thing, unlike stocks or mutual funds, which are just pieces of paper. When investors are worried about a possible financial system collapse, holding physical silver gives them peace of mind.

Silver’s price has been much more volatile than gold’s in the past, which could give you a better return. Over the past ten years, the cost of silver has done much better than the stock market.

This is because silver is a valuable metal used in industry, so its price is affected by economic factors and market sentiment. Silver is an industrial and precious metal that you can use for both practical and investment purposes.

It is a way to protect yourself from inflation and economic instability. Even if the economy fell apart, silver would still be worth something as a trade item. Also, many people think we are in a “bull market” for silver, so the price will likely keep going up.

Silver is a limited resource; there is only so much silver to find. In the world, it is mined slower than other metals like gold, which makes silver more valuable as an investment because it is rare than gold.

Few new silver deposits are likely to be found, so the price will likely keep going up over time.

Silver is suitable for your taxes. Silver that can be used in an IRA doesn’t have to pay capital gains taxes, which makes it a better tax-wise investment than stocks or mutual funds.

With tax-advantaged accounts like IRAs, investors can put off paying taxes on their investment gains or even not pay them at all.

Ways To Invest In a Silver IRA

Through an IRA, there are several ways to buy real silver. Most people purchase coins or bars of silver and store them in a depository.

American Eagle, Canadian Maple Leaf, and Austrian Philharmonic coins are some of the most popular silver coins to buy as investments. You can also buy silver rounds, which are not legal coins because a private mint makes them.

A silver pool account is another way to put money into real silver. Investors can put their money together in a silver pool account and buy silver bullion at a lower price.

The problem with this method is that investors need to own the silver, so they can’t take it into their hands. Investors can also buy futures for silver. With these contracts, investors can buy silver in the future at a specific price.

Investors put up a margin, a small percentage of the total contract value, and then they can buy or sell silver at the future price. This method is more advanced and works best for investors with a lot of experience.

The bad thing about this method is that it is precarious and based on guesswork. Silver futures are only an excellent long-term investment for some people.

You could also buy EFTs that own silver bullion. The iShares Silver Trust is the most well-known silver ETF (SLV). This fund is backed by the U.S. government and holds actual silver bullion.

The problem with this investment is that it’s not as volatile as other precious metals, which means it doesn’t have the same potential for returns.

ProShares Ultra Silver (AGQ) is a leveraged ETF that invests in physical silver bullion and is made to track the daily changes in silver prices twice. This fund is best for investors with a lot of experience who are okay with taking on more risk.

Investors should know that leveraged ETFs are reset every day, which means they can lose money even if silver prices go up in the long run.

Do Banks Offer Physical Silver IRAs?

No, banks don’t offer physical silver IRAs, and most don’t provide them to the public either. They don’t show it because silver prices change more often than other metals, which puts the bank at a higher risk.

Also, banks tend to like more liquid investments, which means you can sell them faster. Silver isn’t as easy to market as stocks or mutual funds, so banks aren’t as interested in it.

Setting up a silver IRA at a bank is just like setting up any other IRA, and you’ll need to open an account and put money or investments into it.

Once you have money in your account, you can buy coins or bars of silver and store them in a depository. When you set up your IRA at a bank, you don’t have as many investment options as you would at other places.

What Happens if an Investor Decides to Sell Their Physical Silver?

Any time an investor can decide to sell their real silver, either sell it back to the place where they set up their IRA or sell it on the open market.

If an investor wants to sell on the open market, they must find a buyer willing to pay the current market price for silver.

The problem with trading on the open market is that it can take a while to find a buyer, and the price you sell it for might be less than what it’s worth on the market.

Investors who want to sell their physical silver back to the institution can do so at the current market price.

The problem with this choice is that the investor will only be able to benefit from a price growth that might happen over time.

Fees Associated with a Physical Silver IRA

Depending on the bank and the type of account, the fees for a physical silver IRA can be different. Some institutions may charge a fee yearly, while others may only charge a one-time payment to get things started.

There may also be different costs for storage and shipping. Here are some of the most common fees that investors should know about:

Annual fee: Some institutions charge this fee to keep the IRA account in good shape and do other administrative work. The annual fees range from $75 to $200.

Application fee: Some places will charge you this fee to open an IRA account. This fee is usually around $50, but it can go up to $100.

Costs for storage and shipping: Precious metals are kept in a safe place called a depository. Most of the time, the place that holds the account will charge fees for storage and shipping.

These fees can differ for different account sizes and types of precious metals.

Cost of silver metals: An investor must buy the coins or bars of silver that are kept in the account. The price of silver can change based on how much it is going for on the market.

Final Thoughts – What is A Silver IRA?

When someone is ready to retire, a physical silver IRA can give them peace of mind that their savings are safe from inflation and currency devaluation.

With a physical silver IRA, they can be sure that their savings for retirement are in good hands.

Also, by adding precious metals to their portfolios, they can protect themselves from the possible losses that come with the stock market’s volatility.

Scroll to Top