How to Invest in a Silver IRA

A silver IRA allows you to diversify your retirement portfolio by investing in physical silver. Silver is often more accessible than gold, making it an attractive option for many investors. With a silver IRA, you get the same tax advantages as a traditional or Roth IRA while benefiting from silver’s ability to hedge against inflation.

To invest in a silver IRA, you’ll need to choose a custodian specializing in precious metal IRAs, fund your account, and then purchase IRS-approved silver coins or bars. Here’s a look at the process, the best companies to work with, and the benefits of silver as a long-term investment.

What is a silver IRA?

A silver IRA is a self-directed retirement account that gives you more control over your investments. Unlike a traditional IRA, you’re not limited to stocks, bonds, or mutual funds. As of 2024, the IRS still requires self-directed silver IRAs to comply with rules and regulations regarding asset management and storing precious metals. 

The silver bullion purchased to invest in a silver IRA needs to be 99.9% pure and sourced from an approved mint or manufacturer. Rare or collectible coins aren’t allowed even if they meet the purity requirements. 

IRS rules still require a custodian to manage your account and the silver must be stored at an approved depository.

Why invest in a silver IRA? 

Inflation and market volatility have been two of the biggest concerns for investors in 2024. Silver, a tangible asset, hedges against inflation, making a silver IRA an excellent choice if you want to preserve the value of your retirement account. 

Historically, silver prices have increased during economic downturns or when the value of fiat—government-issued currency—declines.

Industries like biotech, computer electronics, and solar energy rely on silver for its conductive properties. Demand for silver could increase in the coming years as more emerging technologies come into the market. 

Add on the tax benefits of an IRA, and you will have the makings of a profitable long-term investment. 

Silver vs. gold

From an IRA standpoint, silver and gold are basically the same type of account. They both provide tax advantages for investing in a physical precious metal. If both metals offer diversification and inflation protection, then why choose silver?  

Silver is more accessible because of its price per ounce compared to gold. Also, the demand for silver in industries like renewable energy offers more growth potential than gold. Silver does, however, tend to be more volatile while gold is widely seen as a safe haven for long-term value. 

Silver IRA vs. other IRAs

On the surface, traditional and Roth IRAs that hold stocks and bonds differ from silver IRAs because of the types of assets a silver IRA holds. 

A deeper dive reveals more differences in terms of investment goals and risk: 

• Traditional IRA stocks and bonds provide long-term growth potential and are easier to liquidate.
• Silver is more volatile and harder to liquidate. 

Silver can help you diversify and hedge against inflation. Silver’s industrial demand is also rising, but it may not match the consistent growth and stability of bonds. Here is a comparison for a closer look. 

Condition	Silver IRA	Traditional/Roth IRA (stocks/bonds)
Performance	Volatile, potential for growth	Consistent, long-term growth
Liquidity	Hard to sell	Easy to trade
Tax Benefits	Same as traditional/Roth IRAs	Tax-deferred or tax-free
Inflation	Hedge against inflation	Limited to market conditions
Risk	High risk	Moderate risk

Is a silver IRA a good investment?

A silver IRA can be a good investment in 2024 if you want a physical asset that’s not tied to any one currency. Like all investments, there’s no guarantee what the future will hold. Here’s what you should know:

• Silver has an intrinsic value that will remain even in a market crash.
• Silver is a hedge against inflation and currency fluctuations.
• Like other commodities, it is influenced by market trends and global economic conditions. 
• Investors are attracted to silver for long-term diversification.
• It is experiencing a rise in industrial demand.
• Silver prices are volatile.
• Selling silver isn’t as straightforward as cashing out stocks and bonds. 

As with any investment, do your own research and consult with a professional for personalized advice. You must fully understand the risks and benefits of a silver IRA before deciding if it’s right for you.  

If you’re deciding between a traditional and a Roth silver IRA for retirement savings, important factors to consider include your current tax bracket and expected future tax bracket. You can review your taxable income now and estimated taxable future (retirement or semi retirement) income. A good rule of thumb is to contribute to a Roth IRA now if you expect your taxable income to be higher in the future. If you expect your taxable income to be less in the future, contribute to a traditional IRA now. You can also open both for tax diversification and contribute to both. Anyone can contribute to a traditional IRA regardless of the amount of earned income and modified adjusted gross income (MAGI). However, for a Roth IRA, if an individual’s MAGI is greater than $161,000, they can’t contribute to a Roth IRA. For those married and filing jointly, if their MAGI is greater than $240,000, they can’t contribute to a Roth IRA. If this is the case, I still recommend contributing to a traditional pretax IRA.

Erin Kinkade CFP®

Pros and cons of investing in a silver IRA

Before opening a silver IRA, consider whether it makes sense as part of your investment strategy and for your financial goals. Here are the pros and cons.

Pros

• Silver offers a hedge against inflation and is a physical asset that diversifies investments.

• Silver has industrial uses, which could increase in demand and value.

• The value of precious metals isn’t tied to any one country’s currency, making them appealing in times of political upheaval.

• Silver IRAs can also hold gold, platinum, palladium, and other alternative assets.

• Tax benefits include deductions or tax-free distributions in retirement.

Cons

• Silver prices are volatile and may lag behind gold.

• IRA account holders have withdrawal restrictions until age 59½.

• Higher fees for custodians and depositories compared to traditional IRAs.

How do you open a silver IRA account?

Opening a silver IRA in 2024 is slightly more complex than opening a regular IRA. Let’s walk you through the process.

1. Choose your IRA type: Decide between a traditional and a Roth IRA. Depending on your tax preferences, you will either receive upfront deductions or tax-free withdrawals in retirement.
2. Select a custodian: IRS rules require a company like Equity Trust or Strata Trust Company to manage your account.
3. Select a depository: Silver must be stored in IRS-approved depositories like Delaware Depository. If you store your silver at home or in a bank safe-deposit box, the IRS will consider the silver distributed to you, and you will lose all tax benefits.
4. Fund your account: Once you have created your silver IRA, you can roll over some or all of your balance from an IRA, 401(k), or similar retirement plan to your silver IRA. The IRS has a cash deposit limit of $7,000 for people under 50 and $8000 for people over 50 years old.
5. Purchase your silver: You can buy IRA-eligible silver from a reputable silver dealer like American Hartford Gold and have your silver shipped to the depository. Working with companies like American Hartford Gold can streamline the process while receiving guidance on IRS compliance along the way. 

Can I convert my IRA to silver?

If you have an IRA, you can convert the balance of that account to a silver IRA. You’ll need to contact the administrator of your current IRA and instruct them to transfer the funds in your account to your new IRA custodian.

You also have the option to roll over money from a different type of retirement account. For instance, if you have a 401(k) account, you could roll over the balance to your silver IRA. Again, you’d need to contact the administrator of your current plan to start the process.

What are the best silver IRA companies? 

Investing in a silver IRA might seem complicated. But a well-informed choice can pave the way for a secure and lucrative investment in precious metals. This roundup offers a guide to four of the top choices to consider.

American Hartford Gold

Best Overall

4.9 _/5

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Why it’s one of the best

• Up to $5000 in free silver for new accounts
• A+ rating with the Better Business Bureau
• No liquidation fees through their simple buyback policy
• Transparent pricing for IRA-approved silver
• Positive customer reviews that highlight excellent service

American Hartford Gold, based in Los Angeles, has operated since 2015. It provides comprehensive guidance on precious metals investing, silver IRAs and spot prices on its website. The company has specialists available on the phone six days a week to guide you through the entire process.

Priority Gold

Best Price Charts

4.6 _/5

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Why it’s one of the best

• Up to $10,000 in free silver for eligible accounts 
• Up to five years of waived fees for eligible accounts 
• 100% tax free IRA rollover
• Price protection plans a buyback program

Priority Gold’s online resources, price charts and excellent customer service make it an attractive choice for silver IRA investors. The company’s price protection plan and buyback program add a layer of security to your precious metals investment. There are no minimum purchase requirements, so the company is a good choice for someone opening a retirement account for the first time.

FAQ 

Where do I find IRA-approved silver?

To find IRA-approved silver, choose a reputable precious metals dealer, such as the companies listed above. Not all silver is eligible for inclusion in a silver IRA. Look for companies that deal with 99.9% pure silver in forms such as coins or bars that are minted by a national government or a recognized private mint.

What fees do I pay if I invest in a silver IRA?

You can expect to pay several fees when investing in a silver IRA. Common charges include setup fees, annual administration fees, and storage fees. Some providers also charge a purchase fee, liquidation fee, delivery charges or have a minimum purchase amount.

Can I hold silver in my current IRA?

You can’t hold silver in a regular IRA, which is limited to stocks, bonds and mutual funds. To invest in silver, you’d need to open a self-directed IRA which allows you to add precious metals as an asset. 

How we chose the best silver IRA companies

LendEDU evaluates gold dealers to help readers find the best precious metal IRAs and inventories for direct purchase. Our latest analysis reviewed 550 data points from 25 dealers, with 22 data points collected from each. This information is gathered from company websites, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best silver IRA companies