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Silver IRA Investing

Silver IRAs are individual retirement accounts that hold physical silver to benefit the account’s owner. Silver IRAs function just like regular IRAs, except instead of the account holding paper assets, bars or physical bullion coins are held. There are four common reasons people buy Silva IRAs. They are the increased silver usage all around the world, silver is affordable and tangible, it has excellent growth potential and owning and managing Silver IRAs is easy. Silver IRA investing is a safe and simple way for people to build their retirement wealth.

Silver IRA Benefits

Investing in Silver IRAs is the perfect choice for people interested in putting away as much money as possible so they can really enjoy their retirement years Identifying and building up as many sources of income that funds their retirement account is a wise move. Plus, Silver IRA investing offers a wide range of very important and helpful benefits for retirees and people preparing for retirement. Some of the reasons a Silver IRA is a good choice include:

1. Increased Silver Usage
2. Excellent Growth Potential
3. Easy To Own And Manage
4. Diversifies The Investment Portfolio
5. Protection Against The Dollar’s Declining Value
6. A Good Alternative To Investing In Low-Yield CDs And Savings Accounts
7. A Hedge Against Economic Volatility

1. Increased Silver Usage

Investors shouldn’t be surprised silver usage soaring as global supplies are slipping. There is a large and growing industrial demand for silver. Its very high conductivity makes silver useful in a wide variety of technologies. Cell phones, computers, tablets and a wide range of high tech gadgets all have silver in them. And as markets for these technologies continue to grow around the world, so will the demand for the silver that is used in them And with the supply of silver lagging behind the demand for it, industry analysts anticipate the price of silver will rise for decades.

2. Excellent Growth Potential

Even though the value of silver has continued to grow steadily over the past 100 years, the precious metal is still affordable and under valued. Precious metals industry experts say the price of silver has excellent potential for significant growth. Although over the last decade silver’s value has grown considerably, analysts predict more big gains are ahead in the coming years as demand increases and the supply of silver remains the same or diminishes. Between late May and August 2019, the price of silver rose from $14.61 per ounce to $18.20 per ounce. With so many popular communications and computing technologies and a host of other manufacturing and production processes using silver, chances are great its price will continue to rise.

3. Easy To Own And Manage

Owning and managing silver is easy. This makes investing in Silver IRAs very attractive for people building their retirement nest eggs. They don’t have to take possession of the silver bars and coins themselves. They can simply invest in a trust that purchases and holds substantial amounts of silver bullion in a vault or mint insured against damage or loss. This makes owning Silver IRAs secure and convenient. The silver bullion is periodically inspected and audited annually. Liquidating silver is fast and easy and there’s always a lucrative market for it.

4. Diversifies The Investment Portfolio

It can be a huge mistake for people to put all of the retirement money into paper assets. Should the stock market experience an unexpected major jolt, which history shows can happen without warning at any time, it can wipe out all their retirement savings. Investing in Silver IRAs can help to protect a portion of people’s retirement savings from the stock market’s volatility. Financial experts recommend people allocate between 5% and 20% of their portfolio to silver and other precious metals. An investment in Silver IRAs require minimal effort for it to remain profitable. It’s a smart investment options which can make a retiree’s life easier.

5. Protection Against The Dollar’s Declining Value

Each year the dollar’s value is eroded a little more. The purchasing power of people who make the dollar of a major part of their retirement investment accounts erodes right along with it. Making investments in Silver IRAs a part of your retirement account building strategy can help to preserve the spending power of your retirement account for the future. Over time, the value of any currency tends to fall. Over the last 100 years, the value of the American dollar has shrunk about 90%. During that same time period, the value of silver has increased tenfold.

6. A Good Alternative To Investing In Low-Yield CDs And Savings Accounts

Many people building their retirement account investment strategy like the low risk associated with putting their money into savings accounts, CDs and other types of similar liquid asset accounts. However, these types of financial vehicles don’t provide very substantial returns. Investing in Silver IRAs offers a very attractive, lucrative, alternative. Silver IRAs, while very safe, have a much higher growth potential than standard CDs and traditional savings accounts and can add a great deal to a person’s retirement account.

7. A Hedge Against Economic Volatility And Inflation

Silver IRAs can provide retirement accounts with an effective hedge against the forces of inflation and economic volatility. Silver generally holds or increases its value over time, while the value of currency tends to fall and the currency becomes devalued as time passes. One of the world’s most traded precious metals, there is always a market for silver. In times of financial or economic crisis, Silver IRAs can act as a hedge that counters inflation because of its unique characteristics and many personal and industrial uses. It’s been an accepted medium of exchange thousands of years.

Why A Silver IRA Is A Good Hedge Against Inflation

There are a number of reasons why a Silver IRA is a good hedge against inflation. Silver’s elemental properties makes it ideal for a wide range of industrial applications. This helps to increase Silver IRAs value as an outstanding investment vehicle that’s not as subject to the vagaries of inflation because of the steady demand for the metal. Silver has been used as currency and a medium of exchange for thousands of years because of its unique and rare characteristics. That keeps the value of Silver IRAs high and rising even as inflation ravages the value of currencies, stocks and other investment vehicles.

Consistently High And Varied Industrial Demand

Silver’s very high and varied industrial demand means the value of Silver IRAs continue to grow even when inflation leads to sluggish markets for other commodities and slows economic growth. With silver’s use in an increasing array of high-tech products soaring, Silver IRAs’ role as a stable investment vehicle makes it almost inflation-proof. And with silver’s relatively limited availability, the value of Silver IRAs is expected to continue to rise for the foreseeable future. Plus, new industrial uses for silver are being discovered almost daily while silver production companies are having a challenging time keeping up with demand.

A Silver IRA’s Value Rises With Inflation

Simply put, inflation and silver’s value move together. As inflation rises, so does silver’s value. Therefore, a Silver IRA can be part of an excellent protection plan people preparing for retirement can put in place in order to help to secure their financial future. They can invest in Silver IRAs with confidence knowing that soaring rates of inflation will actually increase the size of their retirement nest egg. And with inflation constantly on the rise, there are few, if any, investments that provide a more stable and lucrative hedge against it than owning Silver IRAs.

A Weakening US Dollar

The US dollar was the world’s most popular currency for many years. However, that isn’t the case anymore. China, Russia and several other countries are working diligently to minimize the amount of US currency they hold because of the dollar’s weakening value. As more countries eschew the US dollar, its value and potency decreases. The value of silver and other precious is growing as the value of the US dollar drops. People worldwide see silver and other precious metals as an investment that will hold their value as the US dollar plummets. This makes Silver IRAs a safer investment as inflation and falling demand batters and shrinks the value of the US dollar.

Unending Trade Wars

Many experts in international trade and investment see trade wars are doing harm to the US economy. The stock market is fluctuating wildly and many people’s retirement accounts are in serious peril because they invested heavily in stocks. The price of the many imported goods Americans buy every day are rising and the value of the companies in which many retirement accounts invested are falling as international competitors begin to dominate. But quietly, the price of silver has been rising consistently. And it has been consistently fattening the retirement accounts of people who bought Silver IRAs even as inflation devalues other investment vehicles.

Rising Prices Of Consumer Goods

Tariffs on the imported consumer products like clothing, footwear, laptops, cellphones and video game consoles is having an inflationary effect on the US economy. Rising prices caused by tariffs is a frightening sign for people whose retirement accounts are inextricably tied to investments in American companies and the stock market. But for people who protected their retirement accounts by making wise investments in Silver IRAs, rising prices and an unstable stock market does not have a negative impact on their retirement nest egg. It may actually help it.

Preserve And Protect Your Retirement Funds

There is no longer any mystery why a Silver IRA is a good hedge against inflation. The only question is are you a savvy enough investor to preserve and protect your retirement funds and your financial future by purchasing Silver IRAs now and watching their value and the size of your retirement nest egg, grow. The longer you wait to take action, the less benefit you will enjoy from silver’s growth in value. For people who want to build a retirement strategy designed to weather the dollar’s eroding value, rising inflation, geopolitical uncertainty and other signs of tough and worsening economic times, now is the right time to put a portion of your retirement funds into lucrative Silver IRAs.

How To Open A Silver IRA

Opening a Silver IRA is easy. And it offers all the same benefits of owning a traditional IRA. It can be self-directed, funded with pretax dollars, grow tax free and taxes are only due when withdrawals are made after retirement. Even if the silver is sold, as long as the money remains in the Silver IRA, it’s not taxed. The contribution limits can be as high as $6,500 annually for people over 50. Silver IRAs are also a great alternative to investing in low-yield CDs and savings accounts. All you have to do is follow a few simple steps and you can protect a portion of your retirement nest egg with a Silver IRA.

Five Simple Steps

All it takes is 5 simple steps for someone to open and set up a Silver IRA account. Those steps are:

1. Select A Precious Metals Firm
2. Determine Your Investment Strategy
3. Funding The Account
4. Decide If To Rollover Other Eligible Accounts
5. Choose Your Silver IRA Investments

Most people can complete the process in a matter of minutes. A number of people find the step that takes the longest is identifying a precious metals firm with which they comfortable and confident enough to open their Silver IRA account there. Once you have chosen what you feel is the best precious metals firm, the rest of the process is a breeze.

1. Select A Precious Metals Firm

This may be the most important step when it comes to opening your Silver IRA account. It is essential that you do your due diligence. You should consider the firm’s track record, the number of years they have been in business, the amount and type of experience they have with Silver IRAs and whether they specialize in setting up and managing Silver IRAs. The right firm will be able to provide you with the information and guidance you need in order to select the Silver IRA that is best suited for your specific retirement goals, needs and desires. The right firm can make opening a Silver IRA account fast, simple, easy and very lucrative.

2) Determine Your Investment Strategy

The investment strategy that will make the most sense for you is one that takes into consideration your age, current financial situation, the age at which you would like to retire and your long-term goals. A good precious metals firm will provide you with advisors that can help you to assess your current financial situation, the number of years you have until retirement and your specific retirement goals, recommend the best options and help you to understand the benefits each option offers. They will then work hand in hand with you to help you make a well-informed decision about your Silver IRA investment strategy.

3. Funding The Account

It is possible to use any portion of your existing retirement account to fund your new Silver IRA. Two simple methods can be used to transfer some or all of the money in your current retirement account to fund your Silver IRA. They are tax-free transfers and 60-day rollovers.

Tax-Free Transfers

It’s possible to transfer funds penalty-free and tax-free from a traditional IRA into a Silver IRA at any time. All one has to do is perform a Direct Transfer. With that process you can use a check or bank wire to move money into a Silver IRA from any other type of traditional IRA. People can perform as many Direct Transfers as they want each year. A dedicated IRA specialist can help facilitate these transfers for you. They can help you do a 401(k)rollover or simply transfer some or all of the existing funds in your retirement account. A Silver IRA specialist can show you how to safely transfer the funds without causing a major tax event in your savings account by having the money go from one custodial account to another.

The 60-Day Rollover

Current law enables people to rollover money from 401(a), 401(k), 403(b), 457, annuities, Thrift Savings Plans and other qualified retirement plans into Silver IRAs. Typically, when the value of Silver IRAs’ values are higher, they are most economical and rollovers makes good sense. A person can request their current 401(k) or IRA custodian cut and mail them a check from their retirement account. If they get the check and deposit it into their new Silver IRA within 60 days, The transaction is completely penalty-free and tax-free. To preserve your retirement savings’ tax-deferred status, the same money can only be rolled over once every 12 months.

4. Decide If To Rollover Other Eligible Accounts

It is possible to convert and rollover the funds in a number of other eligible accounts into your Silver IRA. That incudes money stored in paper IRAs and eligible 401(k)s. While the process is simple and easy, you should discuss with your Silver IRA specialist whether rolling over all of your eligible accounts into your Silver IRA is the wisest course of action. They can explain the process and go over the pros and cons of such a decision with you and help you to decide if it is in your best interest to do so or if it is better to keep your retirement account a little more diversified.

5. Choose Your Silver IRA Investments

A Silver IRA functions in the exactly the same way as a traditional IRA does. However, instead of having paper assets, it’s contains physical silver coins or bars. The IRS has several Silver IRA investment options that are permissible. But, only a limited type of silver are allowed according to IRS rules. Types of silver the IRS allows held in IRAs include:

a. American Eagle Silver Coins
b. Canadian Silver Maple Leaf Coins
c. Austrian Philharmonic Silver Coins
d. PAMP Suisse Silver Bars
e. Johnson Matthey Silver Bars

Proof Silver American Eagle Coins is another popular item in Silver IRAs. Minted in limited quantities and having intrinsic value along with the silver content, proof silver coins are designed to be held in an IRA. Unlike a regular coin, which is struck once, proof silver coins are struck 4 times. This gives it a mirror-like surface, a frosted finish and lots more detail and luster. This government issued coin comes in a velvet box and has a certificate attesting to its purity and metal content.

Held In Special Depositories

When your purchase a Silver IRA, the physical silver is held in an IRS-approved depository for you until you reach the retirement age. You can then decide at that time if you want to have your silver shipped directly to you. It can also be sold for cash at any point. As long as you have a Silver IRA, you will receive regular statements on their value and condition. What many people love about owning a Silver IRA is their money in not invested in stocks or mutual funds. Instead you own physical silver bars and coins that while stored in IRS-sanctioned depositories, can be touched and held and even shipped to you if you so desire.

A Great Investment Vehicle

A Silver IRA is a great investment vehicle that offers many excellent benefits and unique advantages. Once they understand how to open a Silver IRA, investors can enjoy certain tax advantages and a useful hedge against inflation and economic instability. Purchasing and funding them is easy. They are extremely liquid and with the value of silver consistently trending upwards, Silver IRAs are a lucrative investment that people can use to diversify their retirement account. For many older Americans, owning Silver IRAs gives them the peace of mind of knowing their retirement nest egg is growing.

Tim Schmidt

A Florida-based Entrepreneur, Author, and Life Hacker, Tim Schmidt decided to take control of his retirement portfolio several years ago by setting up a self-directed IRA. This blog shares his thoughts and opinions on the top of retirement and investments. You can follow his career and travels on his Official Website as well as on his Instagram page.