Silver bullion bars

Although silver often gets overlooked by investors compared to gold, both are considered safe investments that are proven to be a hedge against inflation or stock market downtowns.

Mixed History of Silver

During the striking stagflation crisis of 1968-67, silver prices rose by 15.4%, and the bear market during 2007-09 witnessed an appreciation of over 1.2%.

But during some other testing times, such as the dot-com bubble, the 1987 black Monday crash, and the recession of the early 1990s, resulting in significant double-digit depreciation in the white precious metal price.

Let’s take a look at the data to gauge whether investing in a silver tax-deferred retirement account is a smart decision amidst the current economic situation of 2021.

A Brief Overview of Silver IRAs

Investors interested in silver investing can opt for a silver individual retirement account, a type of self-directed IRA, for purchasing silver bullions, ETFs, or other physical and paper-backed silver assets.

There are two primary types of IRAs:

#1 Traditional IRAs: Earnings from this type of investment are tax-deferred till the time you start making withdrawals, and you’ve got the freedom to sell or buy physical assets using the funds stored in the account through a third-party depository.

#2 Roth IRAs: If you wait to withdraw money till you reach the age of 59-60, you aren’t obliged to pay any additional money or taxes at the time of withdrawals. However, you do have to pay tax on current contributions.

IRS regulations state that only silver held by an IRS-approved trustee or third-party custodian is eligible for inclusion in an IRA.

Any silver asset such as bullions held in your possession is ineligibleand will require you to pay capital gain taxes.

Silver: A Better Investment Than Gold?

Analysts are generally optimistic about silver and agree that the precious metal can be deemed to remain a safe bet, with some investment experts estimating that silver is headed for a price ceiling above $32 per ounce.

Technical analysts at CIBC and Yahoo Finance reveal that the peak levels can reach as high as $43.50 per pound.

This means silver investing is expected to retain its bull rush in the coming periods and may provide better results than gold.

In 2020, the average price of gold was reported approximately $1747 per ounce, and it’s estimated to reach over $2150 in 2021, which is roughly a 23% increase.

In contrast, silver is expected to provide a 54% return on investment during the year.

The Bottom Line

Although no investment is risk-free, silver stands out as a safer option in the precious metals market.

It protects your retirement savings by providing a hedge against inflation and is proven to be an excellent diversifier for investors who have a fixed income.

Silver investing provides greater peace of mind than the equities market because the white metal isn’t correlated to shocks in the stock market performance.

In case of economic discrepancies, geopolitical uncertainties, ora market-wide downturn, such as the global economic uncertainty that the world witnessed during 2020 due to the COVID-19 virus, diversifying assets lowers susceptibility to severe losses.

If you’re looking for competitive returns, downside protection from the devaluation of financial assets or currencies, diversifying your investment portfolio with a precious metals IRA account is advised by experts.

But make sure to choose IRS-approved, trusted third-party custodians, such as investment experts at the Orion Metal Exchange.

Whether you want to buy silver bullion coins or are looking to buy silver bullion bars, our experts can serve as reliable IRA custodians and help you manage or set up gold or silver IRA accounts.

As one of the top gold IRA companies, we also have the knowledge and expertise to help you invest in gold to save money and offer secure private vault storage rentals at unmatched rates.

Reach out to us at 1-800-559-0088 for more information regarding investing for a comfortable life after retirement.