What Is IRA Approved Silver? What qualities does it have that make it stand out from other types of silver that can otherwise not be used for investment in an IRA? Today we shall take a look at this interesting topic, in a bid to ensure that you have the right information as you prepare to open your silver IRA, or as you expand your understanding of the precious metal investment industry.
P.S.
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Investing in Non-Traditional Assets
Investing in precious metals presents numerous benefits to an investor, with the main ones being additional diversification as well as growth opportunities. The IRS has made it possible for investors to also add precious metals such as silver to their Individual Retirement Accounts, popularly referred to as IRAs. This, however, does not mean that you can now pick any type of silver and put it in your IRA. The IRS has outlined some requirements for the types of silver that can be put into a silver IRA. Investors are required to adhere to the set requirements, to avoid conflict with the IRS- which as we know is not a good thing to do.
Recall that you can only invest in silver through a self-directed IRA ( SDIRA). An SDIRA works in the same manner as a regular IRA, with the only difference being that it can hold a wider variety of assets. Those who choose to open SDIRAs can, as such, invest in alternative assets such as:
- Real estate
- Promissory notes
- Private equities
- Other precious metals e.g. gold, platinum, and palladium.
What types of silver can be added to an IRA?
Unlike for gold IRAs, Silver coins and bars in an IRA must be 99.9% pure. The only type of silver that the IRS will allow you to use in your IRA for the purpose of building your retirement investment portfolio must also come from specific producers, which include government mints, accredited assayers, or manufacturers. This silver must also meet the fineness requirements which are set at 0.999.
Examples of IRA-approved silver coins:
- Austrian Philharmonic Coins – These coins are viewed as the silver versions of the popular Gold Philharmonic coins. They were introduced to the industry in 2008, and have since then been used by investors to complement the Gold Philharmonic coins.
- Canadian Maple Leaf Coins – These silver coins happen to be on the list of the purest coins in the entire world. With a purity of 0.9999, you can be sure that you are getting genuine silver that can be placed in a silver IRA with no qualms of conscience. These coins are produced by the Mexican government in their mint known as the La Casa de Moneda de México.
- American Eagle Bullion Coins – You can never go wrong with this American classic silver coin, which also happens to be the world’s only silver coin that has the backing of the U.S. government. With its near-perfect silver content and purity, you can be sure that you are holding the right coins in your IRA.
- American Eagle Proof Coins – These coins are presented as a unique set of approved silver coins, which happen to be rarer than other bullion coins.
- Australian Kookaburra Coins – the design of the silver Kookaburra changes each year, just like the gold Kookaburra counterparts. You can purchase these silver coins in one of the denominations they are minted in, which are:
- 1 oz.
- 2 oz.
- 10 oz.1 kg
Besides the above-listed coins, you can also put silver bars into your IRA, and reap the long-term benefits of investing in this precious metal. You only have to check with your IRA service provider that the silver bars are produced by a genuine manufacturer such as the Royal Canadian Mint. Silver bars are a suitable option for investors who are considering large-scale diversification.
Types of Silver that you cannot include in a silver IRA
While a good number of silver products make their way into self-directed IRAs, not all of them are approved. You can, for instance, not use the following products:
- Pre-owned silver
- Certified silver sourced from 3rd party grading services
- Silver jewelry
- Silver that does not meet the set fineness, weight, and purity requirements.
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What do you gain from adding silver to your silver IRA? 
Investors who are creating a balanced portfolio for their retirement years usually add silver to the lineup of their assets, owing to a number of reasons, which include:
- Silver has been around for many years and has found its place in the financial world. Ever since the Romans minted silver coins as early as 3 B.C., we have seen many civilizations use silver in commercial settings as money.
- Silver is a tangible asset, hence differs from paper assets such as stocks, bonds, and ETFs. This means that even if things do not go as planned, you can still access your silver coins or bars, and use them for other purposes.
- Silver has had such impressive growth rates over the years. In the period lasting between 2000 and 2020, for instance, the value of silver rose by over 470%.
- Silver is quite affordable. If you have dreamt of investing in precious metals but haven’t gotten started due to financial constraints, then silver is worth considering. You can own several silver coins for just a few bucks in today’s market.
FAQ (Frequently Asked Questions) about What IRA Approved Silver is
The FAQs below provide important and relevant information about silver IRAs. Please, if you got more questions then simply ask in the comment section below this post and I will make sure to answer it as fast as humanly possible!
Can I put the silver I already own in my IRA?
No. The IRS does not allow investors to use pre-owned silver in their Silver IRA. You have to create a self-directed IRA account and use the retirement investment funds ( from your bank or previous retirement plan), to purchase the IRA-Approved silver. The silver IRA custodians are required by the IRS to see to it that silver IRA account owners follow all the rules, including the one that prevents them from putting their pre-owned silver into their account, regardless of how pure or fine it is.
Where do I purchase IRA Approved Silver?
There are many approved silver dealers that you can contact if you need to purchase IRA-approved silver. You only have to make sure that the dealer you decide to work with is genuine, and has all the required accreditations. Be sure to check the dealer’s reviews on consumer trust sites, to see what other customers are saying about them.
Is IRA Approved silver more expensive?
Not necessarily. You may, of course, expect to pay a premium to acquire the very fine silver products, but most of the IRA-approved silver is very affordable. This is why a significant number of investors simply invest a small percentage of their retirement investment funds on silver and end up with a significantly large amount of it.
How do I know the silver is IRA Approved?
Most IRA Approved products come with certificates that describe the state and qualities of the item. You only need to confirm what the IRS’ standards for silver that can be used in an IRA are so that you purchase the right products. You can also simply decide to work with the silver IRA experts, who are in most cases quite willing to educate their clients on what they can expect when investing. A silver IRA investment guide would also go a long way towards helping you identify the right silver products to use in the IRA.
You might also want to read some of our other posts on precious metals IRA, 401(k) and retirement investments in general, plus more, and other related subjects:
Also read: What is a 401(k) to gold IRA rollover?
OR
What is Numismatic Gold Coins
That will be all for this post on what IRA-approved silver is. My hope is that you now have an idea of the type of silver that you can purchase and put in your IRA, and the types that are off-limits. You do not have to struggle with picking the silver you will use for the purpose of investment when you can simply contact a reliable silver IRA service provider to get all the help you need, and a silver IRA guide. A silver IRA guide should give you more details on the IRA-approved silver, as well as other rules that you can expect when opening your silver IRA.
I wish you well,
Eric, Investor and Team Member at Gold Retired!
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