How To Buy Silver with IRA Money

How To Buy Silver with IRA Money

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Retirement planning takes time for individual investors to develop a strategy that works best for them and involves investing in different types of assets. However, when an investor starts saving for retirement when they are young, they are generally in a better financial position when they retire.

People frequently use an IRA to increase and diversify their retirement portfolios and take advantage of the many tax benefits. Most investors purchase equities like stocks and bonds in an IRA but can also buy precious metals like silver.

There are many reasons why investors should add silver to their retirement portfolio. We will discuss how a silver IRA works and the benefits of including silver in an investment portfolio.

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Buying Silver with Retirement Savings

Many investors are considering investing in precious metals like silver. This asset is becoming increasingly popular for many reasons, including being a solid hedge against inflation. In addition, buying silver with your IRA money may be a smart way to diversify your portfolio and avoid losing money in volatile markets.

Coin - American Silver Eagle 1 Ounce
Buying Silver for Retirement Savings

A self-directed IRA is the best way to invest in silver for retirement. A self-directed IRA offers investors more flexibility and enables them to manage their accounts as they see fit. They are free to invest in various assets prohibited in a conventional IRA.

For example, standard IRA owners cannot invest in silver, but a self-directed IRA owner can. In addition, self-directed IRA owners can in real estate, commodities, debt notes, and other assets. 

There are several reasons why silver makes a great investment for a self-directed IRA. These reasons include the following:

Hedge Against Inflation

Silver is a solid hedge against inflation due to its scarcity and high inherent value. Therefore, an asset like silver that increases in value during inflationary times can help balance portfolio losses. The country is experiencing the highest inflation rate since the early 1980s, which makes it a great time to invest in silver.

High Demand and Usage

There are many beneficial uses for silver. Jewelry, mirrors, automobiles, batteries, smartphones, and electronics all have silver. Silver will never be irrelevant because it is prevalent in so many products that people use every day.

Silver investments have a promising future because of their extensive usage. Silver is a reasonably safe investment even though its value will not soar like speculative investments. However, investors will not need to be concerned about the value of silver declining to zero.

Long-Term Growth

Historically, silver has grown strongly during tumultuous times. As a result of its enormous supply, silver is currently trading at low levels, which makes it affordable for many investors regardless of their budget.

However, due to supply constraints resulting from more societies and businesses using silver, investors can purchase silver at a good price and generate long-term growth.


A diversified portfolio can help protect investors from varying economic circumstances. For example, when the economy is uncertain, growth stocks generally decline while silver prices soar.

Diversifying an investment portfolio across equities, real estate, precious metals, and other assets can reduce risk and increase the chance of a portfolio growing in value.


It is simple to find a buyer for silver because of its great demand. Investors can keep silver coins, bars, and bullion and sell them later. It is easy to find a silver exchange, pawn shop, jeweler, or some other business that will purchase silver and other precious metals by searching online.

Key Facts About Buying Silver

A self-directed IRA enables investors to purchase silver and benefit from generous tax breaks. However, before using retirement funds to buy silver, investors need to be aware of a few key facts:

Learn About the Different Types of IRAs

Investors can choose from several types of IRAs, but the most common are the Traditional and Roth IRAs. Investors can use the Traditional or Roth IRA to invest in stocks and mutual funds. Contributions to a Traditional IRA are tax-deductible, but distributions are taxed.

In contrast, contributions to a Roth IRA are not tax deductible, but distributions are not taxed. Unfortunately, neither IRA allows people to invest in silver.

Investors need a self-directed Traditional or Roth IRA to invest in silver. An independent custodian supervises silver investments, and the retirement account offers the same tax benefits as conventional IRAs. Investors must decide if they want to pay taxes now or later.  The most popular way to buy silver with IRA money is by converting 401k funds in process called a silver IRA rollover.  

Other self-directed IRAs include the following:

  • Solo 401(K)
  • Inherited IRA

Find a Reputable Dealer

 The next step is to find a reputable precious metal dealer once the investor decides on the type of self-directed IRA they want. Dealers can impact an investor's profits, so the investor needs to check out a dealer's online reviews before making a silver purchase.

These testimonials reveal the legitimacy and reasonableness of the dealer. The dealer should also have a website that offers plenty of information for their customers, including inventory information, numismatic services, investing information, and other services.

Find a Reputable Custodian

Custodians manage investor holdings in the capacity of brokers. They monitor investor assets and inform them of any changes to IRS legislation. The IRS mandates that investors work with a custodian for a self-directed IRA.

In addition, the IRS has guidelines, investment minimums, and other requirements that they place on custodians. Therefore, investors should only work with reputable custodians who can provide information about expanding their portfolio.

The first step when shopping for a custodian is to check their licensing and registration. A license and registration will ensure investors are dealing with a reputable company. Next, investors should review their listings with the Better Business Bureau.

The BBB can be a helpful resource in determining if the company is worth being a custodian for an investor. In addition, an investor should look for a custodian that has been in business for a long time. This experience can help ensure an investor is dealing with a company that understands the need of investors.

IRA custodians are not required to provide investors with financial advice. However, they should be more than willing to answer questions about investing in self-directed IRAs. They may also provide investors with educational materials, blog posts, podcasts, and webinars to help investors understand their retirement goals and the IRA rules.

Fees and Restrictions

When an investor buys silver with their self-directed IRA, it is important to understand the fees and restrictions that govern this type of investment to avoid being liable for penalties and paying excessive fees.

Most importantly, investors must ensure their silver is stored in a properly regulated third-party storage facility to protect it from theft and fraud. However, these facilities also charge a storage fee. 

A self-directed silver IRA has a few additional costs compared to a typical retirement account. Here are a few fees that an investor can expect when using a self-directed IRA to invest in silver:

  • A mandatory one-time self-directed IRA setup fee
  • Transaction fees
  • Custodian and storage fees
  • Early withdrawal fee

Conventional and self-directed IRAs have early withdrawal penalties with tax liabilities.

For example, an investor can be hit with a tax penalty and withdrawal fees if they withdraw some or all their assets in a conventional or self-directed IRA before they turn 59½. Knowing these fees, fines, and tax implications can help investors save money and maximize their returns. 


Silver is not something an investor may want to keep in their home. Theft and robbery are huge concerns for many people. Precious metal storage facilities are where silver investors frequently keep their assets.

These storage facilities must follow IRS regulations to remain in business. The key is to find a storage facility that meets the IRS's requirements and can handle precious metals for investors. Investors should look for a storage facility that has BBB accreditation or belongs to a precious metal association or organization. 

Self-directed IRA owners must put their silver in the depository after finding a workable solution. They should only keep silver in a storage facility that is safe, guaranteed, and offers insurance protection if the silver is stolen.

There are storage fees, and different storage facilities charge varying rates. Investors will need to compare prices to get a good deal. Investors will be surprised to find that some low-priced storage facilities offer many of the same benefits as high-priced ones. 

Buying Silver with a Self-Directed IRA

Buying silver with self-directed IRA money can be a smart way to diversify a portfolio and avoid losing money in volatile markets. Once an investor finds a reputable dealer, they can purchase silver with self-directed IRA money.

Many dealers specialize in buying and selling various precious metals, including gold, silver, platinum, and palladium. As a result, they can help investors choose the right products to buy. In addition, dealers often work with reputable custodians and storage facilities to refer the investor to these businesses without obligation.

Once everything is in place, the investor can start to place orders for silver. They can purchase products like American Eagle Bullion Coins, Austrian Philharmonic coins, and Canadian Maple Leaf Coins or buy bars that meet IRS standards for purity.

The IRS may not approve some silver products, so the investor needs to check with their IRA custodian to ensure they buy products that meet their account requirements.

Related Reading: Understanding IRA Approved Silver Bars and Coins

A self-directed IRA is an excellent choice for those who wish to invest in precious metals. This type of IRA lets investors control their investments and allows them to purchase other types of assets.

Final Thoughts

Investors should do their homework when buying silver with their self-directed IRA funds.

They should also choose a reputable company that will deliver the highest quality service and pricing. To help them avoid losing hard-earned retirement savings.

Remember to read out list of the Top Silver & Gold Companies.

>> Click HERE to read our Best Precious Metals IRA Companies list <<


Get a FREE Silver & Gold Information Kit from our #1 recommendation, by clicking the button below:

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