4 Reasons To Invest In A Silver IRA In 2022

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When the stock market gets rocky during times of uncertainty, some investors seek out alternative investments that can protect against traditional asset volatility. Given recent current events, alternative investments are seeing a major peak in interest from investors. Things like precious metals and cryptocurrency are quickly becoming a part of many investors' portfolios. 

Today, I’d like to give you four benefits of one of those alternative investments, silver IRAs. 

What is a Silver IRA? 

A silver IRA is an individual retirement account that is self-directed, where you are enabled to purchase silver and other alternative investments, including other precious metals like gold. Silver IRAs require you to purchase actual physical materials, not just gold-company stock or gold index funds. By buying the actual asset you are avoiding buying an index that doesn’t actually hold any physical materials and you avoid any specific company risk. Although they have investment options beyond a traditional IRA, they are very similar outside of this, including that they have the same contribution limits.

In 2022, the current IRA contribution limit is $6,000 if you are under 50 or $7,000 if you are 50 or older. There is also the option to open up a silver Roth IRA, that doesn’t require minimum distributions. There are some rules to consider when looking into opening a silver IRA. First of all the IRS requires that the metals must meet their standards and are held by an IRA trustee instead of the IRA owner, much like a custodian holds your stocks for you. Thus, the metal must be held in an IRS-approved depository. It’s very important to find an IRA trustee that is capable of facilitating the account. One such company is Regal Assets which specializes in silver IRAs and other alternative investments.

Source: www.bullionbypost.co.uk 

4 Reasons to Invest in a Silver IRA

1. Investment Diversity

One of the major advantages of a silver IRA is that it provides significant portfolio diversification. Normally, advisors will diversify your account with defensive funds like grocery and health companies that tend to stay afloat during downturns in the market. With silver IRAs, you are completely sidestepping stocks and indexes and are investing in an actual physical asset, offering an even greater source of diversification. Like they say don’t keep all your eggs in one basket.  

2. Inflation Protection

Another major benefit of Silver IRAs is that they offer significant inflation protection beyond normal investments. Precious metal prices generally move in the opposite direction of paper assets. Think of it as an insurance policy against the declining power of the dollar. With inflation being a major concern in today's economy it is important to fight against it. Most savings accounts only offer interest at a fraction of the current inflation rates.

3. Rising Popularity

Recent current events have led people to alternative investments and rightly so. With war waging in eastern Europe and fears of a market collapse, precious metals offer protection from possible negative economic effects of these situations. Many of the world’s experts believe that we are in an economic bubble and that there is going to be a market correction in the near future. It is my belief that this correction is closer than we may think. It’s no wonder the popularity of these accounts is at an all-time high being that they protect against political risks. 

4. Higher Return Potential

Lastly, silver IRAs offer a significant chance of higher returns. Precious metal prices can be unstable but often offer a higher return than most traditional assets during bear markets. Along with cryptocurrency, precious metals offer some of the highest returns available especially while receiving IRS tax benefits offered by retirement accounts. Choosing to invest in a silver Roth IRA also allows you to not have to pay taxes on the potential huge returns, as long as you wait until 59 ½ to withdraw your assets.

Conclusion

In summary, you can see the power of silver IRAs and the versatility they provide in the retirement investment marketplace. There are few assets that provide inflation and market decline protection while offering significant tax benefits. In addition, to bear market defense they offer great diversity in your portfolio that you can rarely find anywhere else. It is my belief that these accounts will become more and more popular as the world market continues to change. I also believe that the increasing popularity will propel the returns on precious metals. Overall silver IRAs are a very valuable tool in the investor's toolbox.

To find out more about how a Gold IRA can work for you, give Regal Assets a call on 1-877-962-1133.

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About the Author

Rob Trudell has more than 10 years of experience in the financial industry and has worked with dozens of financial advisors across the US. He has worked with Inc Magazine’s 10th fastest-growing private firm in America, Formulafolios, helping them grow from 14 employees to over 110 in less than 3 years. He also started his own advisory firm at the age of 24 growing the firm to over $5 million in assets under management. Currently, he is providing consulting and planning services.

You can connect with Rob on LinkedIn.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.