The silver IRA is experiencing unexpected demand. While the demand may be unexpected, it is definitely justified. The underlying asset has been wrongly ignored by a large number of investors. While the typical investments have withered and let inflation steal away the significance of their gains, silver has performed spectacularly.
If you are looking to achieve a certain quality of life during your retirement, then you should shift the focus of your funds from the typical stock indexes and pick up as much silver as you can right now. A silver IRA could provide the most solid foundation possible for your retirement.
What’s So Great About an IRA?
If you do not have an IRA already, you need to begin speaking with custodians. These are the business entities that oversee individual retirement accounts (IRAs). Each custodian may have different regulations surrounding their accounts. Each of them also has to follow legalities put in place by the IRS.
An IRA can benefit you in several ways. Anyone can set aside money and invest it in the stock market like IRA custodians do with your contributions. However, only an IRA can offer you varying tax advantages.
For example, the Traditional IRA set up permits you to contribute $5,000 per year. These funds are not taxed because they are not considered income by the IRS. This gives you the pleasure of avoiding taxes now and only paying taxes on what you withdraw when you retire.
The Advantages of a Silver IRA During Inflation
As great as an IRA is, many investors have been disappointed by the performance of their underlying investments in the last decade. The problem is inflation. More complacent investors may be thrilled to see that the stock market is way up over its lows in 2009. However, when you take inflation into account, you can see that many stock indexes are not keeping pace with the devaluation of the US dollar.
There are, though, some investments that have outpaced inflation and the stock market as a whole. Silver is one of them. More than that, silver has even outperformed most of the other top performers.
This is hard for some people to hear and believe. Nevertheless, the numbers prove the point. Silver was worth just $4 an ounce in 2001. Since then, it has climbed steadily until values have reached above $32 at present. That is an 800% performance.
With silver investments in your IRA, you know that your wealth is safe. While others complacently watch the wealth erode as they rely on stocks, you can rest assured that you have seen the real silver lining in the inflation cloud. The only real question on your mind should involve which silver investments to make with your IRA contributions.
Possible Silver Investments
There are numerous ways to invest in silver with your IRA. Not long ago, any precious metal investments were limited to silver and gold American Eagle coins that the US Mint produces every year. Now, IRAs are permitted to offer their clients a wide range of silver investments, including both physical silver and less direct investments in this precious metal.
• Physical Silver
Silver can be purchased in two primary forms: bars and coins. Some people prefer coins because they are very liquid on the market. Others favor bars for their efficiency.
If you want to buy silver coins with your IRA funds, then your best option may be the American Silver Eagle. The US Mint strikes these millions of these coins in one-ounce size every year. They are respected around the world for their physical integrity and their value. While they sell at a price well above spot value, they are treasured because it is so easy to convert them into cash whenever necessary since there is always an interested buyer.
Silver bars are larger than coins and require more money to acquire. They are also not as liquid as coins. However, they sell much closer to the spot price of silver because there is little design involved in their production. As investments, they are efficient because of this quality.
The major drawback to buying physical silver is the need to maintain and store these assets. Once you make a purchase, there may be numerous additional fees for shipping the silver. There will always be fees for maintenance and storage. These obviously detract from any possible gains and also erode your investment.
• Silver Stocks
This is why some investors prefer to invest in silver mining companies. A business stock can advance even if the underlying asset is stagnant or in retreat. Yet the stock is still responsive to surges in silver value.
• Silver ETFs
The most popular silver investment right now may the ETF. Jim Rogers, an internationally-known commodities investor, swears by them. These funds allow you to buy and sell their shares as easily as if they were stocks. Yet their value is tied directly the value of their silver assets.
How to Get a Silver IRA
If these investments sound exciting to you, it is time to contact a precious metals IRA custodian. Review the presentations for their accounts and find one that will offer you as many options as possible for the least amount of fees. If you already have an IRA, ask your custodian about these investments. It is easy to switch custodians with an IRA transfer when you learn that your present custodian cannot offer what you need.
A silver IRA offers you one of the few investment possibilities that stands a chance against inflation and market turmoil. It is never too late to switch the focus of your IRA funds. This option remains open no matter how close you are to retiring.