A physical Silver IRA Explained
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A physical silver IRA account is an IRS approved program in which investors can own physical silver coins and bars. The physical silver IRA holdings are insured and stored in an IRS approved commercial depository. To facilitate physical silver transactions as a non-taxable event, the IRA custodian works with the precious metal dealer and the commercial depository to facilitate and confirm physical delivery. With the involvement of an IRA custodian, commercial depository, and precious metal dealer, there are multiple checks and balances to ensure the precious metal account holder and their physical silver assets are protected.
Diversification
Physical silver coins can be utilized as an hedge against geo-political uncertainty. Gold and silver coins are used as investment vehicles to protect against fiat currencies and arbitrary government policies.
Physical precious metals have a comparatively low or negative correlation when compared to stocks and paper assets. When the values of paper assets decrease, physical silver will likely rise in value and promote portfolio balance and stability.
Precious metals are not prone to mismanagement or mishandling by corporations or government entities. Precious metals are not subject to government policy changes. For example, when you own a silver Eagle coin, no one can borrow or loan against your silver coin. Physical precious metals are free from the risk associated with debt.
Silver’s Past Performance and Future Projections
Over the past 25 years, silver has gained 450% in value. Currently, silver would need to increase 70% to reach its prior all-time high. Based on the historical gold-silver ratio equation, silver is currently considered more undervalued than gold. Silver is expected to continue to rise in value moving forward. This trend is expected to continue due to inflation, industrial and technological uses, supply and demand fundamentals, and geopolitical tensions. With silver at only $29 per ounce, investors should seriously consider diversifying in this precious metal before it moves any higher.
Offset inflation
Silver coins have a long-standing record of preserving wealth and combating inflation. Unlike paper fiat currencies, silver coins command an actual cost to produce. As fiat currencies have failed throughout history, physical silver has continued to hold or gain value over time. Making ownership of physical silver in an tax-deferred retirement account a winning combination. Governments, central banks, and investors alike own physical silver to offset the risks in paper debt and geoeconomic uncertainty. Silver is considered by many as a premier combatant to protect against inflation. IRS approved retirement accounts are a great way to protect against the erosion of wealth through taxation and physical silver is a great way to protect against the erosion of purchasing power through inflation.
FAQ: Your Key to Understanding!
What are the benefits of a silver IRA?
The ability to protect purchasing power in a tax-sheltered IRS approved program.
Is silver good for an IRA?
Physical silver is a good way to diversify against and combat inflation while taking advantage of the benefits allowed in an IRS approved retirement program.
What does IRA approved silver mean?
The IRS determines the types of silver products that can be allowed in an accredited retirement account.
