Precious Metals
While gold may make the headlines any time precious metals begin to rise in price, silver can sometimes be the better performer. Many have become aware of that in recent years, which is one reason silver demand has exploded tremendously during the recent economic uncertainty.
More and more individuals are turning to silver to protect the value of their assets, build their wealth during times of financial turmoil, and protect their portfolios against the possibility of stock market crashes and economic crises.
But many who are just becoming aware of precious metals and the role they can play in protecting their retirement savings may not fully understand how they can buy silver coins and silver bars to safeguard their wealth.
Did you know that you can roll over or transfer existing assets from tax-advantaged retirement accounts into an asset that holds physical silver coins and bars?
Did you know that those rollovers and transfers can occur tax-free, allowing you to lock in gains from your existing assets and benefit from future gains in the silver price?
And did you know that the process to do that can start with something as simple as a phone call to trusted partners who have helped people just like you protect their wealth with silver?
Keep reading to find out how owning physical silver coins and silver bars can benefit your retirement savings.
If you’re not already familiar with the benefits of owning silver, here are five of the top reasons to do so.
Silver is, first and foremost, a tangible asset. Whereas stocks are an holding in a part of a company, and bonds are a promise to pay, silver is something that you can hold in the palm of your hand.
That tangible property makes it appealing to a great many. Stocks can lose their value completely if companies go out of business.
Bonds can become worthless if their issuers default. But silver can’t default or go out of business. It just sits there maintaining its purchasing power and growing in value over the long term.
Silver is also affordable, especially when compared to gold. Many precious metal owners like to look at the gold to silver price ratio, or the relationship between gold prices and silver prices.
Historically, this ratio has hovered between around 40:1 and 60:1 in recent decades. But currently that ratio is over 80:1, and it has been as high as over 100:1.
That could indicate that silver is undervalued relative to gold, and that it could be a good opportunity to buy silver.
Because the gold to silver price ratio fluctuates but tends to return to historical averages, the ratio returning to a 50:1 or lower ratio would mean that individuals could make big gains in the future by purchasing silver today.
Like gold, many buy silver to hedge against the possibility of a financial crisis or even a full collapse of the monetary system. And many individuals hold at least some silver themselves to use as money in an emergency situation.
Because silver is less valuable than gold, it is far more practical to use for smaller everyday purchases, and thus plays an important role for those protecting themselves against the possibility of financial collapse.
You wouldn’t know it from all the headlines that gold gets, but silver often outperforms gold, especially during precious metals bull markets. Gold has gained about 15% so far this year, while silver has gained 17%.
That isn’t unusual, as during the last major bull market, silver gained 481% from November 2008 to September 2011, versus gold’s gain of 268%.
Perhaps more importantly for potential silver owners, the upside potential for silver could be even greater than that for gold. Since half of silver demand comes from industry, industrial demand plays a great role in silver’s price moves.
And because silver is playing a greater role in industry today, with demand for silver set to increase, the silver price could rise significantly in the coming years.
Silver is perhaps the most important metal used in the production of solar panels, and as demand for solar panels and green energy increases, silver’s industrial use will increase.
Estimates for the growth and demand of solar energy show that solar may account for more than 40% of all new power generation by 2030. In any case, demand for silver should grow significantly over the next decade, which should benefit silver owners.
Silver coins have been minted for thousands of years, and have served as the backbone of everyday commerce from the Roman Empire to the Spanish Empire to the United States. But not all silver coins are necessarily ideal for wealth preservation.
Those looking to buy silver coins through a silver IRA, for instance, will find that they aren’t allowed to buy silver coins that are considered collectibles. So if you thought you could start a silver IRA and buy Morgan silver dollars and US junk silver, you’re out of luck.
Silver IRAs are only allowed to acquire coins with a minimum fineness of .999 (99.9% silver), rendering many classic silver coins ineligible for IRA holdings. Thankfully, there are still dozens, if not hundreds, of IRA-eligible silver coins available on the market today.
With so many different producers and designs to choose from, silver IRA owners can have their pick from many high-quality specimens. Goldco works directly with mints around the world to provide our customers with 100% authentic IRA-eligible silver coins.
Many individuals who start out buying silver may gravitate towards buying silver bars. Silver bars are available in a wide range of sizes, from 1 gram to 1000 ounces.
Some of the most popular sizes include those in the 5-ounce to 100-ounce range. They offer the ability to purchase large quantities of silver while still not being as expensive as gold.
And because each bar is relatively affordable to purchase, it can make it easier to sell too when it comes time to take a distribution from your silver IRA.
The largest silver bars are often purchased by silver users such as those involved in industrial use of silver. They’re looking to minimize cost per ounce and minimize transportation and storage costs.
Most people look to smaller bars, and with so many sizes to choose from, there’s a silver bar to serve every need. Contact a Goldco representative to learn more about the types of silver bars available to you.
If you’re looking to buy silver coins and bars, an increasingly popular method of doing so is through a silver IRA. A silver IRA allows you to roll over or transfer assets from an existing tax-advantaged retirement account such as a 401(k), 403(b), TSP, IRA, or similar account into a silver IRA.
Your silver IRA then maintains the same tax advantages as any other IRA account, but holds physical silver coins and bars that are stored at a depository. When you decide to take a distribution of IRA assets, such as a required minimum distribution (RMD), you can take it in silver or in cash.
All it takes to start the process of opening a silver IRA is a call to Goldco to learn more about how silver can benefit your goals. The experts at Goldco have helped thousands of people just like you buy silver coins and silver bars, whether for a silver IRA or for a direct cash purchase of silver to store at home.
Goldco’s experts can answer any questions you have about the silver purchase process, whether it’s about how to start a silver IRA, rolling over funds from your existing retirement accounts into a silver IRA, or how the process of purchasing and taking delivery of silver coins and bars works.
If you have retirement assets that you want to protect against possible loss from a stock market crash or bond market collapse, don’t wait any longer to get the ball rolling. Call Goldco today to find out how owning silver can help secure your financial future.
This article was originally published in December 2020 and was updated in July 2024.
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Free Precious Metals Guide
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DISCLAIMER: This site is general in nature and not tailored to the specific goals of any individual. All investments carry risk. Some of those risks associated with precious metals include the following: prices may rise and fall, which means the value of your metals may go up or down over time and you may sell for more or less than you paid. Past performance does not guarantee future results. Goldco cannot guarantee, assure, or promise future market movement, prices, or profits. Even though Goldco and its representatives are precious metals specialists, we are not licensed financial advisors and do not give financial advice. Additionally, Goldco cannot provide tax or legal advice and will not advise as to the tax or legal consequences of purchasing or selling precious metals or opening a Precious Metals IRA. Individuals should consult with their investment, legal or tax professionals for such services.
