Why Own Silver?
Silver is utilized in industrial and technological applications such as, cars, computers, cell phones, cameras, jewelry, water purification, medicine, batteries, tableware, and solar energy. Silver is also considered real money and is used as a hedge against fiat currency losses when inflation is present. Like other precious metals, silver is an asset you can own and physically possess. Unlike other commodities, silver will not rot, decay, or corrode over time. Silver is used by investors to store and protect wealth long-term. Physical silver is a debt-free way to diversify and hedge a portfolio. Unlike debt encumbered paper investment assets, no debt is attached to your physical silver holdings. Due to supply and demand fundamentals, silver has never gone to zero in value.
A properly diversified portfolio will include a percentage of precious metals. Silver is a great way to diversify and hedge a portfolio for the long-term.
What Are Precious Metal IRAs?
Precious metal IRAs are self-directed IRAs established solely to store physical gold, silver, platinum, and palladium. A conventional IRA account does not allow you to store physical precious metals. With a self-directed precious metal IRA, you can fully own investment grade bars or coins through a tax deferred account.
Other than owning physical precious metals, everything else functions in the same manner as a conventional IRA program. The contribution limits are the same as conventional IRAs and include the same tax-deferred savings advantage. Below are some points you should consider before opening an IRA for precious metals.
How Does a Precious Metal IRA Work?
Self-Directed Custodian, Depository, and Precious Metal Dealer
For a precious metal self-directed IRA, you need an IRA custodian, commercial depository, and a precious metal dealer.
The role of a custodian is passive in investments. It does not act as a financial advisor or play a part in making decisions. It does not hold any responsibility for an investment’s performance. Its role is limited to the facilitation of investments. Per IRS, a custodian is required to fund investments through an IRA.
The commercial depository physically stores and secures the precious metal holdings. All precious metals are insured through the depository by Lloyd’s of London.
Choosing The Right Precious Metal Dealer
Choosing the right precious metal dealer is paramount. A valid precious metal dealer can help you locate the IRA custodian and depository that will best suit your personal needs. A precious metal dealer should offer transparency by posting their product purchase pricing online. If a precious metal dealer refuses to advertise their product purchase pricing online, it’s to hide their exuberant fees. A competitively priced company will openly advertise their product pricing. If you want to receive more metal for your money, demand online product pricing. Remember, if you must ask what the product price is, you’re talking to the wrong precious metal dealer.
A valid precious metal dealer can also help you purchase or sell precious metals through a 3rd party storage account or with home delivery. Only work with dealers that will guarantee pricing before you are required to satisfy a transaction. Most precious metal dealers will charge a fee to buy and a fee to sell. Some companies offer a fee-free buyback policy. Make sure to confirm what a company will charge to liquidate your precious metals before moving forward with any precious metal dealer.
IRS Guidelines Concerning Purity Requirements and Predated 1933 Silver Numismatic Coins
A self-directed IRA only allows you to store silver with a 99.9% purity as an IRS approved asset. Additionally, all predated 1933 numismatic silver coins are ineligible for ownership in an IRA account. Numismatic coins are rare and collectible coins due to an artistic or historic value, making them attractive investments for collectors. Such coins cannot be held in an IRA.
Contribution Limits
The contribution limit of a precious metal IRA is identical to a conventional IRA account. The same rules apply.
Withdrawal
Lastly, there are two ways in which you can withdraw precious metals from your self-directed IRA. You can either choose to have the metal delivered to you “in-kind” or sell the coins to a precious metal dealer for the current market value and receive the currency equivalency.
Establishing A Silver IRA with Orion Metal Exchange
Simply contact our in-house and full-service IRA department by phone. Within minutes, they can help you establish a precious metal retirement account. Then, our IRA department will contact your current retirement account custodian to request the transfer of your retirement account funds. Once your funds are transferred, you will be able to buy, sell, or exchange gold, silver, platinum, or palladium with a phone call. Our IRA department will then insure and ship the precious metals to your insured IRA depository account. A precious metal IRA allows you the flexibility to buy, sell, and exchange precious metals within your retirement account as a non-taxable event. Orion Metal Exchange offers the services of every legitimate precious metal IRA custodian and depository in the nation, and our IRA department will help you find the best custodian and depository program to suit your personal needs. Every IRA commercial depository we work with is insured by Lloyd’s of London for the value of your precious metal holdings.
FAQ: Your Key to Understanding!
