You’ve noticed the writing on the wall and you’re beginning to worry about protecting your financial future. Hence the reason to decide whether it’s best to invest in silver coins or bars.
In my humble opinion, each of these investments has their merits. The most important part of the investment process is the way it’s initiated. Investing through a silver IRA is far superior to any style of precious metals investing. As long as you buy silver coins or bars through a precious metals IRA, you’re in excellent hands.
To highlight the differences between silver coins and silver bars, I’ll look closer at both of them today. I’ll share the pros and cons of each. And I’ll mix in a number of reasons why silver IRA investing is the superior choice over the long run.
Are you ready to learn the truth? Keep reading to understand the value of investing in silver coins or bars through a precious metals IRA.
The Benefits of Investing in Silver Coins
CPM Group says that many investors have gravitated toward silver coins in recent years because they provide added wealth protection. The stock market has experienced tremendous aftershocks from the coronavirus. It dropped like a rock in February and March 2020. No one was certain how long it would take to recover.
Thankfully, the market recovered tremendously in the ensuing months. So, your stock market investments haven’t suffered too much in most cases. Yet some sectors still haven’t recovered nearly as much as they should have because of closings and social distancing.
How does this fit into investing in silver coins? Well, during the crash many investors realized that they needed to protect their portfolio. Buying silver coins is a great form of portfolio protection.
While the stock market was experiencing massive volatility, the silver price steadily began to rise. As investors were losing on their stock investments, they were beginning to gain big value with their silver coins.
Additional Benefits of Buying Silver Coins
Besides the 40% rise in value in the past six months, there are other reasons invest in silver coins. They include things like:
- Massive demand. The demand for silver has never been greater. Not only is it a valuable commodity because of its use in electronics. It’s also incredibly popular because it’s an awesome way to store wealth. It’s highly sought after around the world. And many countries would have no problem accepting silver currencies to pay for goods and services.
- Silver is more undervalued than gold. As a matter of fact, gold is practically 100 times more expensive than silver. From an investing standpoint, this means it’s a lot easier to afford silver coins as opposed to their gold counterparts. At $25 an ounce, you can easily purchase many 1-ounce coins at the current spot price. Gold is a lot more expensive at nearly $1800 an ounce. It’s a lot harder to purchase a single gold coin at such a high price point.
- A wide variety of purity levels and sizes. A 1-ounce silver coin is popular but it isn’t the only common choice. You can easily find 10-ounce silver coins that are a pricier investment. Or, 1 kg silver coins exist that are much larger investments. And purity grades vary anywhere from 95.8% to 99.9% purity, like the Silver Canadian Maple Leaf.
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The Potential Downsides of Investing in Silver Coins
Like anything else in this life, some people can easily find downsides to investing in silver coins. Basically, any potential downsides really come down to personal preferences. Because this investment is top-notch, high-quality, and worth every penny.
But for argument’s sake, there are some reasons why you might prefer to avoid investing in silver coins. One reason is you’d rather focus on other investments and you only have limited capital. You might prefer jumping on the Bitcoin bandwagon, or investing in real estate, or another investment vehicle.
No matter what, just know that silver IRA investing is a safe and secure way to grow your retirement portfolio. It’s a healthy investment choice that provides big returns over the long term. But again, you may have other preferences or choose to focus in other areas and prefer avoiding silver coins.
Additional Potential Downsides of Buying Silver Coins
Although I believe strongly in this investment, you may have reasons to ignore it for the time being. Some other potential downsides to consider regarding silver coin IRA investments include:
- Certain silver coins aren’t eligible for a precious metal IRA. You have to be careful when choosing silver coins for your IRA portfolio. Buying the wrong coins means you can’t capitalize on the tax advantages and other benefits a precious metals IRA provides. IRA approval is an absolute must and to receive this approval the silver coins must maintain near 100% purity. Only work with silver brokers that focus on IRA approved coins.
- The silver spot price fluctuates. Guess what? The value of every other investment is going to fluctuate as well. At times your silver will be worth much more than the amount you originally paid for it. But in the beginning, you might pay a higher price and lose some value quickly. Over the long term, this isn’t a problem because your portfolio will grow with time. But those with short-term thinking need not invest. You’ll experience fear for no reason as the silver price fluctuates. Fear can lead to making foolish decisions.
Take a moment to read my reviews of the top 10 gold and silver IRA brokers. Are you ready to invest? I highly encourage you to choose one of these companies because they’re the best in the industry.
The Benefits of Investing in Silver Bars
Investing in silver bars is certainly a wise choice. This investment vehicle has made many people wealthy over the long term. And if you’re looking to boost your retirement portfolio, using silver as a hedge against inflation makes perfect sense.
Besides the many reasons to invest in silver, you should buy silver bars because of the value they provide. As an example, did you know that it’s often cheaper to buy silver bars or rounds as opposed to silver coins? You can pay as much as $1 less than the silver coin price.
Right now, silver is selling for about $25 an ounce. If you were to purchase a 1-ounce Silver American Eagle, you’d spend more than the spot price for the privilege. Silver bars and rounds are different because they’re cheaper. Precious metals brokers charge near the spot price or just a tiny bit more.
Additional Benefits of Buying Silver Bars
Besides the great price point, it’s definitely wise to invest in silver bars for other reasons. Some of my favorite reasons for buying silver bars include:
- Silver bars come in a wide variety of designs. It’s nice to have choices. Although there are some really cool silver coins in existence, I think silver bars are even more attractive. I like having lots of design options to choose from and silver bars provide these great choices.
- Private mints produce IRA approved silver bars. Not only is variety the spice of life, but buying highly sought-after silver bars from well-recognized mints certainly doesn’t hurt. You can buy IRA approved silver bars minted by PAMP Suisse or Johnson Matthey. Just buy them through your precious metals IRA account without fear because they have approval.
- Government mints also produce valuable silver bars. IRA approved silver bars are being minted by the Royal Mint, the Royal Canadian Mint, the US Mint, and the Perth Mint. Each one of these valuable silver products are perfect for precious metals IRAs. They contain the purity levels needed for approval.
The Potential Downsides of Investing in Silver Bars
Investing in silver bars potentially has its downsides. I personally love this investment vehicle, but you might find reasons to avoid it. One reason why you might ignore buying silver bars is some do not reach the proper purity levels.
Since your options are limited to IRA approved choices, you might not prefer this investment. That’s certainly your choice and you have the right to invest in or ignore silver bars. I wouldn’t recommend ignoring it because the advantages are tremendous within a silver IRA. But I’ll leave it up to you.
Additional Potential Downsides of Buying Silver Bars
Again, your personal preference might insist you avoid silver bars for your own reasons. Some of those reasons could include the following:
- Some investors are afraid to try something new. You might avoid buying silver bars because of fear. This is foolish because there are so many great silver IRA companies to help you. There is nothing to fear if you’re new to this type of investing. Help is ready and available at all times.
- It’s harder to sell silver bars when compared to silver coins. Believe it or not, some people prefer owning silver coins. This makes it harder to sell silver bars to outside sources. This is especially true if you bought it from a private mint with a bad reputation. But since you’re focusing on purchasing IRA approved silver bars, this will never be a problem for you. Your brokers will have a buyback program in place.
Read my review of the top 10 silver and gold IRA companies to learn about the best in the business.
At the end of the day, it’s obvious that investing in silver coins or bars is a great choice. But to really capitalize on this investment, you need to buy them within a precious metals IRA account. With this investment vehicle, you’ll gain access to tax advantages and other benefits that most investments don’t provide.
When investing in a silver IRA, you should seek help from the top gold and silver companies in the industry. To simplify your life, I reviewed the top 10 gold and silver companies and shared my thoughts and feelings about each one. Read my reviews to get a better understanding of each company. And discover why they’re potentially the perfect fit to meet your needs.