Silver IRA is a precious metal IRA popular among investors who have a lower budget. It is a great option as it provides tax benefits and long-term security similar to a Gold IRA, at a reasonable rate. But finding reliable IRA-approved silver coins and bars is not an easy task. You cannot use just any kind of silver in your IRA, the IRS (Internal Revenue Service) has specific guidelines and rules which must be followed. There are strict standards for the purity and storage of the silver used in an IRA. Many popular silver coins and bars are not eligible for an IRA as they don’t meet the minimum standards set.
Purity Grade Requirements For IRA-Approved Silver
Similar to IRA Approved Gold, the IRS has set strict rules & standards for what kind of silver metal can be used in an IRA. There are major tax benefits you can receive from holding such retirement accounts, generating tax-free wealth is simply amazing. The following rules have been laid down by the IRS for silver in an IRA:
1) The silver must be stored in an approved depository. The IRA holder (aka the investor) cannot store the silver for their IRA at any other place except for an IRA-certified depository. Most of the bullion dealers will offer you storage facilities at moderate fees, so this is mostly a non-issue.
2) All the silver bullion products, coins, and bars must have a purity grade of 0.999 or higher, anything less would make it ineligible for an IRA. These are strict quality standards set by the IRS and must be followed.
3) A custodian is to be appointed as the trustee of the IRA. Investors usually chose from industry-leading brokers and dealers who are partnered with the best of the best custodians. They help you open your account without any hiccups.
Commonly Asked Questions
1)How Do Silver IRA Plans Work?
Ans) You invest in a silver IRA through a self-directed IRA, you just need to have the cash available with a valid IRA. The best IRA companies simplify the process of setting up a silver IRA, increasing its convenience exponentially.
2) What Is Meant By IRA Eligible Silver?
Ans) You need 0.999 purity-grade silver for it to be eligible for a retirement account. There are specific standards set by the IRS. You can check out IRS publications 590-A & 590-B to learn more.
3) Is Silver IRA Better Than Gold IRA
Ans) If you are tight on funds but still want the tax benefits and long-term returns of a trustworthy precious metal, then a silver IRA is a better option than gold.
Why You Should Consider Adding Silver to Your Precious Metals IRA
While providing similar security as gold, silver is considerably affordable. I strongly recommend people with tight budgets go for a Silver IRA instead of a gold because of its reach. Although you cannot keep your IRA-eligible silver in your house, you still own the physical silver. That silver will be stored in an IRA-approved storage unit.
Just like gold, silver is a great tangible asset. Unlike stocks, cryptocurrency, and alt. coins, you can physically keep silver. It has also been a great investment for long-term investors, from 2000 to 2020, the silver price has risen more than 474%.
IRA-Eligible Silver Coins
Just like any other precious metal bullion coinage, silver products are also backed by the government, giving them massive popularity. They are struck by sovereign mints like the United States Mint, the Royal Mint of England, the Royal Canadian Mint, and the Austrian Mint. While all these coins have unique and striking designs, they all have similar weight and purity.
Below is the list of popular silver bullion coins which can be used in an IRA:
Silver Morgan Dollar: It’s the most popular coin in America. It has a mass of 26.73g and features a reeded edge. The coin has 90% Silver and 10% Copper.
American Silver Eagle: This is the official silver bullion coin of the USA. It has a mass of 31.1 g and contains 99.99% silver content.
Silver Peace Dollar: These are the predecessors to the Morgan Dollars. Their mass is 26.730g and a thickness of 2.40 mm. It’s 90% Silver and 10% Copper.
Austrian Silver Vienna Philharmonic: This coin is popular among European investors. It weighs around 31.103 grams and contains 1 ounce of pure silver.
Australian Silver Lunar: This coin comes in 12 different designs inspired by the Chinese calendar. They were updated annually by the Perth Mint. It weighs 31.3 grams and has 99.99% pure silver.
Australian Silver Koala: While new, the Australian Silver Koala has gained massive popularity due to its unique design. It weighs 31.1 grams and contains 99.99% of pure silver.
Canadian Silver Maple Leaf: It is arguably the most recognizable precious metal coin in the world. It has a face value of 5 Canadian dollars and a purity grade of .9999.
South Africa Silver Krugerrand: These coins are minted in a proof finish and feature Paul Krugerrand on the front and a springbok antelope on the back. It has a purity grade of .999 and weighs 31.1 grams.
Mexican Silver Libertad: These coins feature a scene from the Mexican Independence Victory Colum. It weights 31.1 grams and contains 1 ounce of pure silver.
Apart from the coins above, there are plenty of others that meet the IRS’ guidelines. If you have a precious metals IRA already and are looking for silver coins, then make sure you’re buying the right ones. I would recommend you avoid collector’s coins, commemoratives, and numismatics, as these are usually overpriced and are not eligible for IRA investing.
IRA-Eligible Silver Bars
We’ve listed the most popular silver bars manufactured by NYMEX or COMEX refinery/assayer and which meet the minimum purity standards of the IRS. Any silver bars which meet these requirements can be deposited in a precious metals IRA.
PAMP Suisse Silver Bar: Each bar of 1 Troy oz contains .999 pure silver. These bars meet the minimum requirements set by the IRS and can be a great addition to your IRA.
Johnson Matthey Silver Bar: It is a highly recognizable name in the silver market. Named after the British conglomerate, the bar is available in a variety of sizes and designs.
A-Mark Silver Bar: A-Mark Precious Metals, Inc processes 90 million ounces of silver every year. The A-Mark Silver Bar is their signature product. Its .999 purity level and 10 oz Troy size make it perfect as an IRA investment.
10 oz Sunshine Silver Bar: Featuring Sunshine Silver Eagle’s logo on its observe, this bar has a simplistic look. Weighs 31.1 grams and contains .999-grade silver.
OPM Silver Bar: Mady by Ohio Precious Metals LLC, these bars arrive in sealed packages and feel premium. They are available in 4 sizes 1 oz, 10 oz, 1 kg, and 100 oz.
Walking Liberty Silver Bar: These bars are quite popular and laid the foundation for other manufacturers with their iconic designs.
RCM Silver Bar: These bars weigh 283.5 grams and contain .9999 fine silver. They have some of the best designs in the market and appeal to investors due to their reliability.
Unapproved Silver IRA Coins & Bars (Avoid For Silver IRA)
The following list consists of silver bullion coins and bars which are ineligible for a precious metals IRA. You need to familiarize yourself with the coins and bars listed below. As pushy salesmen and brokers try to sell collector’s coins and other overpriced products to make a quick buck. If you are looking to invest in silver for IRA, then avoid these. While not inherently bad investments, these bullion products are not IRA-approved.
Great Britain Silver Queen’s Beasts: Provided by none other than the Royal Mint, these are a special 10-year series featuring one royal symbol beast per year. It has a mass of 2 troy oz and contains 99.99% fine silver. These coins are considered collectibles by the IRS and thus, are not IRA-approved.
United Kingdom’s Silver Britannia: This coin features the “Fifth Portrait” of Queen Elizabeth II. It weighs 31.1 grams and is 99.9% silver. The IRS does not deem this coin to be eligible for an IRA.
South African Pel’s Fishing Owl Coin: The Republic of South Africa is the creator of the world’s very first bullion coins in 1967. This coin weighs 33.6 grams and has a purity grade of .925. It does not meet the minimum purity requirement for IRA eligibility and thus cannot be deposited in a precious metals IRA.
Chinese Silver Panda: These coins took the industry by storm. They feature the Chinese Temple of Heaven on the front and an adorable panda on the back. It has 99.9% silver content but they are deemed as collectible by the IRS.
French Silver Coins: This beautiful silver coin contains an inscription of the coin’s denomination at the front. It has a mass of 30 grams and contains 90% silver content.
Isle of Man Silver Angel: In 2016, the Pobjoy Mint celebrated its 15th anniversary of the Isle of Man’s signature Silver Angel coin. The IRS considers this coin as a collectible thus it is not IRA eligible.
Somalia Silver Elephant Coins: This bullion issue contains .999 purity level silver. They have been in production since 2004. The IRS does not permit the usage of this coin in an IRA.
Silver 20 Swiss Francs: This coin takes inspiration from Swiss culture. Each coin is sealed by Swissmint directly and has a guarantee for purity and quality. But it lacks the purity levels of minimum .999 (it is .835), so it is not IRA eligible.
Fiji Great Wave Silver Coins: These coins stand out like a sore thumb. This bullion features The Great Wave Off Kanagawa. It is considered a collectible coin and thus isn’t IRA-approved.
Soviet and Russian Silver Coins: The “observe” of this coin features the Russian coat of arms, while the “reverse” changes to honor the respective Olympic event. These coins have a .900 purity grade and do not meet the minimum standard set by the IRS of .999, thus they are not allowed in an IRA.
Andorra Silver Coins: These are rare coins loved by collectors and investors. Weighing 31.1 grams and containing 99.9% pure silver content, this coin is one of the best for collectors. But due to its collectibility, these are not IRA eligible.
Cook Islands Silver Bounty Coins: These coins have a high purity grade of 99.99% and have a simple but striking design. These coins exceed the minimum purity levels of the IRS, but due to their small mintage (5,000 pieces), they are more of a collectible. And the IRS does not allow collectible coins.
New Zealand Silver Kiwis: These have a limited mintage of 5,000 and contain 1 Troy oz of .999 pure silver. Queen Elizabeth is featured in the observe and two Kiwi birds on the reverse. These are deemed collectible as well and aren’t IRA-approved.
Niue Silver Hawksbill Turtle: These coins feature a Taku Turtle swimming in the Pacific Ocean. While meeting the purity standards for IRA eligibility, they too are considered collectible by the IRS and are thus not allowed in an IRA.