The IRA or Individual Retirement Account is a popular choice for smart investors planning for their retirement. Investors who look for an extra sense of security often choose to invest in gold, silver or other precious metals rather than cash or stocks for their retirement account. All of these options are far more secure, but if you are looking for long-term appreciation and stability, silver IRA is likely the best choice for you.
The Basics of Silver IRA
Silver IRA is basically the same as the typical individual retirement account. However, instead of paper assets, investors use gold or silver coins or bars, also called gold and silver bullion.
Their precious metals are kept in a secure depository at the bank or a private company like Silver Bullion until the investor’s retirement. The investor can then choose to liquidate the bullion or have it shipped to their address.
The value of your IRA can grow depending on the price of silver. Unlike stocks, silver is far more secure as it cannot declare bankruptcy or go out of business like companies often do without warning.
Why Choose Silver?
While other precious metals are a viable choice, silver has an advantage over other option for several reasons. However, the most important ones are listed below.
It is in High Demand
Silver is used for everything from jewelry to technology, in items such as flat-screen TVs, cell phones and medical instruments. Therefore, this precious metal is constantly in high demand, a trend that is not likely to change for years to come.
It is Stable
The price of pure silver per ounce has been on a steady rise over the years. Therefore, silver is a great investment choice if you are looking for long-term profit. The price of silver has grown almost ten times between 2001 and 2011. The supply of silver is finite and the scarcer it becomes, the higher its price will grow.
It will not lose Its Value
Even the best share of stocks can lose value due to bankruptcy or other internal struggles within the company. Silver does not struggle with the same issue. Even the shares of a legendary watch maker such as the Fossil Group are not immune to decrease in value, as the company stocks went down 20% in 2016 according to US News. With silver or any other precious metal, you won’t have to worry about such a downfall.
You are in Control
A lot of company-sponsored retirement plans aren’t very flexible in terms of how they are invested. The only thing investors do is tell the brokers at what age they plan their retirement, and the brokers create a scheme on their own accord. With a silver IRA, you are more in charge of managing your retirement plan.
Additional Considerations
The IRA rules are the same as with the traditional IRA, such as annual contribution limits. Finally, rollovers are sometimes allowed from other funds, such as existing IRAs.
Investors should know that only 99.99% pure silver can be placed in the IRA. Also, any silver added to the retirement plan must be under the supervision of a custodian. This means that any silver bullion you keep at home does not count towards your IRA, only the silver you keep at the designated storage deposit.