Investing In Silver With Your 401(k) or IRA

Throughout history, during turbulent economic times, precious metals such as silver have maintained their value, which makes them a prudent choice for saving for retirement. Bonds, stocks and mutual funds are often placed directly into retirement accounts, such as 401(k)s. Gold, as well as its cousin, silver, rich with industrial applications, provide other options.

Why convert my 401(k) into silver?

Including precious metals in your retirement savings, lowers your risk by diversifying away from paper assets, which are generally known to be unstable when the stock market crashes. Portfolio diversity also gives you a hedge in the event of economic downturn or inflation. With 3/4 of the world’s silver stock used to manufacture medical devices, microwaves, solar panels, batteries, film, flat screen televisions, solar panels, and various other products, it is no wonder silver has become vital to technology. The limited ability to mine silver retains its high value. Although more abundant than gold, silver is still far rarer than other metals with industrial applications, such as copper and aluminum. Silver is likely to remain valuable in the future due to the fact that there is more demand than there is supply.

Silver has intrinsic value

Silver is a metal used for many industrial applications, which creates a never-ending demand for this metal. Its diverse properties, including ductility and malleability, electrical and thermal conductivity, physical strength and the ability to withstand extreme temperatures places it in high demand as an industrial metal, in ways that cannot be substituted for cheaper alternatives.

Silver is part of the global market

The strong industrial demand for silver has resulted in it becoming a global investment vehicle, especially in India and China. These countries have been collecting silver in unprecedented amounts, while investors keep a close eye on the market.

Close to the end of 2019, China launched its Shanghai Silver Benchmark continuing to be the largest consumer of silver in the world, forming 18% of the world’s demand for silver. This high ongoing global need causes the limited supply of silver continuing to be in demand and could even result in future gains for individuals holding silver.

Silver maintains value, fiat currency does not

A veritable hedge against depreciation of paper assets and against inflation, silver is not tied to any particular type of money, therefore central banks or governments are not able to control or alter its price.

Placing silver in your retirement account is easy

If you roll over your 401(k) into a self-directed IRA (SDIRA) you will be able to directly purchase precious metals like silver. This is also true if you transfer your funds from a conventional IRA. In a few simple step you are able to move your funds over into the SDIRA and gain access to precious metals.

Our mission at Prudential Metals Group is to guide and educate our clients about how they can protect their retirement savings by investing in precious metals.