Are you hoping to grow your retirement account and live comfortably once you reach 65 years of age or older? Many future retirees miss the boat on opening a precious metals IRA. They do not always grasp the benefits of owning IRA approved silver.
Obviously, you aren’t one of these individuals. Otherwise, you would’ve found your way here. A phenomenal way to grow your wealth, remain protected against inflation and tough economic environments is opening a silver IRA.
There’s a catch though. Not all silver is an eligible precious metals IRA investment. Only certain options that have received approval by the IRS are acceptable investments in this account.
To make things easy for you, I’m going to share important information about IRA approved silver. By the time you’re through reading this, you’ll have learned the names of IRA approved metals. And you’ll have learned other critical information on very important topics.
Learn more about approved investments for a silver IRA account below.
How Did Silver Receive Approval for Self-Directed IRA Investing?
Oftentimes, future retirees think that it was always possible to buy silver in a precious metals IRA. But this definitely isn’t the case. In fact, it only became possible when the Taxpayer Relief Act of 1997 officially passed.
In 1997, a bill was approved that was specifically designed to make it easier to save money for taxpayers. In this bill, they created rules for tax reduction, which was definitely a wonderful thing. They also made it possible for investors to begin buying silver to accumulate wealth in retirement.
There are specific requirements in place the silver investments must meet to qualify for a precious metals IRA. Those requirements include:
- Silver Purity Levels – according to the IRS, the minimum purity level for silver investments is 99.9% purity. So, any silver that you purchase for your account including bars, rounds, and coins cannot contain a lower purity level. Otherwise they will not be accepted as IRA approved silver.
- Accredited Rounds, Coins, and Bars – not every silver investment is created equally. Some are not produced by accredited organizations that the IRS deems fit. The organizations with accreditation include: LME, LPPM, TOCOM, NYSE/Liffe, ISO 9000, COMEX, NYMEX, certified national government mint, or LBMA.
- Silver Proof Coins – to become IRA Excel silver IRA acceptable, each proof coin must have its own certificate of authenticity. The condition must remain nearly flawless and it must remain inside the original packaging from the mint.
- Small Silver Bullion Bars – every one of the small silver bars needs to have its weight stamped on the front. The bar must weigh as much as it’s supposed to according on the weight stamped. Exclusions include 1000-ounce silver bars.
- Non-Proof Silver Bullion Coins – to achieve silver IRA approval eligibility, a coin must be in brilliant uncirculated condition. It cannot have any damage on it whatsoever.
Top Silver Coins, Bars, and Rounds with Precious Metals IRA Approval
- Australian Koala Silver coin
- Silver 1-ounce round
- Austrian Philharmonic Silver coin
- Silver 10-ounce Morgan Design bar
- Australian Kookaburra Silver coin
- American Eagle Silver coin
- Armenia Noah’s Ark Silver coin
- Silver 10-ounce round 10 ounce
- Silver 1-ounce PAMP Suisse bar
- Chinese Panda Silver coin
- Burnished American Eagle Silver coin
Are Collectible Coins Considered IRA Approved Silver?
Let the truth be known that certain collectible coins are typically not considered IRA approved silver coins. In fact, there is only one instance in which a silver coin meets IRA approval. And that is when it is a silver US proof coin. They maintain the necessary 99.9% purity, which gives them their approval status.
Although, investors should stay away from silver proof coins anyway for the most part. These coins typically have a much bigger markup than what they are worth because they look more attractive than other silver investments. You’ll likely end up spending more money for silver proof coins then the value that they maintain. This makes them a much less desirable investment in my opinion.
Ineligible Coins, Bars, and Rounds for a Silver IRA
- French Napoleon coin
- U.S. Buffalo Proof coin
- Italian Lira coin
- Russia’s George the Victorious coin
- United Kingdom Sovereign coin
- Somalia Elephant coin
- South African Krugerrand coin
- South African Krugerrand coin
- USSR Chevronet coin
- Dutch 10 Guilder
- Israel Tower of David coin
- Austrian Corona
- Mexican Gold Peso coin
- Switzerland Vreneli coin
- Mexican 50 Peso
- U.S. Liberty coin
- Swiss 20 Franc
- Chilean 100 Peso
- British Britannia coin (pre-2013)
- French 20 Franc
Is It Mandatory to Store IRA Approved Silver in a Depository or Vault?
Storing silver IRA investments in a depository or vault is an absolute must. If you attempt to store them in a safe at home, you’ll be breaking the rules created by the IRS. Plus, your IRA custodian would never let it happen in a million years. Why? Because they could get in a lot of trouble.
You may not know this, but you actually want to keep your silver IRA investments stored in a vault. These dedicated storage facilities are run by individuals who have protected money and precious metals for decades. They will keep your silver safe and sound so you can sleep well at night.
And investors have the opportunity to open a commingled or segregated vault. A segregated vault only contains their investments. A co-mingled vault contains investments from many others as well.
IRS Endorsed Depositories for Silver IRA Investments
The IRS has to provide approval to a depository before it can begin accepting silver IRA investments for storage. As you can imagine, there are only a limited number of depositories that have received approval from the IRS. The 6 depositories that I’d like you to learn about today include:
- Delaware Depository Service Company – this industry-leading business is incredibly popular and it gained IRS approval because it’s licensed by CME Group, COMEX, and NYMEX. They have $1 billion of all risk insurance for precious metals and they insure deliveries by up to $100,000.
- HSBC Bank – this company banking conglomerates started in the precious metals depository space back in 2003 when they first became licensed. They’ve grown tremendously since then in this area and many look upon them as the biggest bullion clearer throughout the globe. This well-known organization is trustworthy and does a great job storing precious metals.
- J.P. Morgan Global Metals – this is another huge banking conglomerate that saw the benefit of entering the precious metals depository space. They officially became licensed to accept precious metals deposits in 2011. They have three major storage facilities. One is located in New York, the other is located in London, and the third is located in Singapore. Safely store your precious metals in a J.P. Morgan depository and sleep comfortably at night.
- Brinks Global Services – I personally love Brinks because their name is synonymous with security and protection. They provide their customers with access to segregated or commingled vaults in London and New York City. They have a great reputation in this industry and their inventory management portal online is second to none.
- CNT Depository – this Bridgewater, Mass. depository has been around for more than 35 years. And they do business in the precious metal space at $8 billion annually. They are a COMEX licensed depository and they provide 100% of their insurance coverage through Lloyd’s of London.
- ScotiaMocatta Depository – this well-respected depository has roots going back to 1671 in Canada. As a matter of fact, this group is known as Canada’s Gold Bank. They’ll gladly accept your silver IRA deposits since they’ve been storing precious metals as an approved vault since 1997.
Can I Purchase Physical Silver for My Precious Metals IRA?
Yes, you definitely have the option to buy silver for your precious metals IRA. Remember that you have to stick to IRA approved silver when you own physical bars, coins, or rounds. It’s a great investment that will continue to accrue wealth for many years to come. Plus, it doubles as legal tender if you ever need to spend it in a pinch.
How Can I Discover the Best Silver Investments for My Precious Metals IRA?
It’s easier to find the best silver investments for a precious metals IRA than you might think. Simply connect with the silver IRA company of your choosing and work with the specialist there. Just know that the following are requirements for minimum fineness levels that include:
- Silver = .999
- Gold = .995
- Platinum = .9995
- Palladium = .9995
Why Do I Need a Silver IRA Account Custodian?
Getting a custodian for your precious metals IRA is an absolute must. Without this manager looking over your account, you will not achieve tax advantaged status. Even more important, a custodian takes care of all of your paperwork and tax reporting on your behalf.
Do yourself a favor and consider opening a Silver IRA account sooner rather than later. This powerful investment will help you grow your wealth at a decent pace. To get started, please discover a good silver IRA company to work with. You can find out information about my favorites by reading a detailed review that I shared on the site.