How is silver IRA approved?

Silver can only be IRA approved if it’s held through a custodian service, which holds the silver in a depository. The custodian service is often an IRA firm, which is separate from the depository. A depository service works with an IRA firm/broker. The depository holds and verifies the silver, and the IRA firm counts your investment. It sounds complicated, but all it really requires is paying an annual fee to your broker, and an annual fee to your depository of choice (usually no more than $200 a piece), and enjoying the safety of your investments.

Can I have silver and gold in the same IRA?

Yes, you absolutely can. You can have silver, gold, platinum, palladium, cryptocurrency, real estate, and other assets within an IRA as long as it’s self-directed. If you have a traditional IRA, you’re limited to paper assets (stocks, bonds, certificates, etc.) decided upon by a company that holds your IRA. We cover everything you need to know about SDIRAs in this post here so you can know exactly what you’re getting into. Think of your SDIRA as a collection of assets, paper and physical.

Should I avoid silver coins?

You should avoid coins in general when you can. Coins are often seen as collectibles, and just like with gold, silver coins don’t have to adhere to a high finesse. They’re often 91% (or sometimes lower), even if they’re commemorative coins or specially minted coins. This is because the design on the face needs to be molded out of an alloy so the silver (or gold) can retain its shape properly, otherwise it may fleck or chip. Bullion is solid and must follow a finesse of 99.995%, meaning you’re getting it as pure as possible. The remaining percentage is alloy because otherwise, melting pure silver would result in burning or destroying it. Silver coins are literally up to 8.995% less silver than bullion on average, often times for the same amount of money. Avoid coins.

IRA Approved Silver: Eligible Silver for Your IRA

After the 2008 financial crisis that lead to the Great Recession, many Americans started looking for a way to protect their retirement savings against such sudden fluctuations in the market. One popular route is to diversify your retirement savings by investing in precious metals and other alternative assets. Many people invest in gold, though silver also has attractive properties.

But you have to be careful—only certain types of silver bullion are allowed in your IRA. Not just any ol' piece of silver will do. To be used as an investment metal, the coins and bars you purchase must be IRA approved silver.

Because it is less expensive per ounce, silver provides a more affordable entry into precious metal investing. For the same reason, it can also be more convenient to sell if you want to cover a small expense, but don’t want to sell a full ounce of gold.

What Does IRA Approved Silver Mean?

IRA approved silver is silver that meets certain strict IRS requirements. Only IRS endorsed gold and silver can be used in your self-directed precious metals IRA.

Here are the main requirements for IRA approved silver:

The silver coin or bar must be above 0.999% purity.
It must be stored in an IRS-approved depository. The firm handling your precious metal IRA will probably have a preferred depository they use.
The IRA must have a custodian who is appointed trustee. Typically, the company that provides your IRA will be the trustee, and they will have a depository and a list of dealers who they work with and trust.
A silver bar must be manufactured by a COMEX or NYMEX approved assayer/refinery.

What Silver Coins or Bars Are Safe to Invest In?

Here are some popular coins and bars that meet the requirements for IRA eligible silver:

American Silver Eagle: Introduced by the US government in 1986, the Silver Eagle has quickly become an extremely popular way to invest in silver bullion coins.

Silver Morgan Dollar: Despite competition from the Silver Eagle, the most popular silver coin in America remains the Morgan Dollar. Because of the number of them that have been melted down since they were introduced in the mid-1870’s, nobody knows how many are left.

South Africa Silver Krugerand: In 1967, the South African National Mint changed the international precious metal market by introducing a gold coin that was legal tender and came in a standard troy ounce. Fifty years later, in 2017, they introduced a silver equivalent.

Johnson Matthey Silver Bars: Founded in 1817, Johnson Matthey is one of the most trusted brands in silver production.

Royal Canadian Mint Silver Bars: At 99.99% purity, these silver bars are the purest currently available on the market.

Many other coins and bars have been approbated and are safe to invest in, though a majority of the current supply in circulation is not eligible.

Before purchasing a new bar or coin, always do a little research to ensure that it meets all the requirements.

Can I Invest in Collectible Coins?

You are welcome to purchase collectible coins as an investment on their own, but they cannot be included as part of your precious metals IRA. Most collectible coins fall below the minimum purity requirements.

In addition, numismatics, commemoratives, and collector coins often have a sharp markup that won’t translate into any greater value for your investment. Be wary of any dealer that pushes you to buy the following coins:

United Kingdom's Silver Britannia
Great Britain Silver Queen's Beasts
Chinese Silver Panda
South African Pel's Fishing Owl Coin
Isle of Man Silver Angel
French Silver Coins
Silver Swiss Francs
Somalia Silver Elephant Coins
Soviet and Russian Silver Coins
Fiji Great Wave Silver Coins
Cook Islands Silver Bounty Coins
Andorra Silver Coins
Niue Silver Hawksbill Turtle
New Zealand Silver Kiwis

Want to Know More?

Diversifying into silver can protect your retirement savings against inflation and help ensure your wealth descends to your heirs intact.

But it’s important to know the rules and regulations first.

If you want to know more, consider our free gold IRA investment guide, which also includes some excellent advice on investing in silver as part of your precious metals IRA.

Sign up to receive a copy of the guide below to get started and see if starting a precious metals investment is right for you.