The price of precious metals has been in the news a lot recently and it makes for an interesting read for all. Namely, it is the price of silver that seems to be attracting the most amount of attention as it has increased by nearly 25% in just a few short months.
At the end of last week, the price of silver reached $16.9 per troy ounce in New York. This means that silver's price is rising faster than all other commodities including gold (16%), copper (7%) and crude oil (18%). In fact, the price of silver is increasing at a faster rate than US stocks and real estate investment trusts in Japan.
So, with all this in mind, does 2016 make for a good time to add silver to your IRA. For those who are unaware, an Individual Retirement Account (IRA) is effectively a savings account that makes for a great place to stock money for your retirement as there are certain tax breaks. It is often wrongly thought of as an 'investment' but this isn't true, it is simply a place for you to store any stocks, bonds, funds, for your retirement. IRAs have to be opened by the individual themselves which makes them different from 401(k)s as these, of course, are provided by the employer. Other types of IRA include those for the self-employed as well as for small business owners but the most common form is the individual account.
Of course, there are some fees involved with a silver IRA, as with any other precious metal, but the benefits are clear to see. The opening of such an account will depend on what the custodian offers; if they allow you to add silver to your existing IRA you may not have to open a completely separate scheme. Once you make the purchase of silver, it will be kept safe with an approved depository firm meaning that you can keep peace of mind.
The main benefit of a precious metal IRA is that you will be diversifying your portfolio but at the same time, securing your future. With silver, you are assured a steady growth in the long-term which will eventually erode the value of paper-based assets such as stocks and bonds. To make the latter work in the long run, they have to be managed carefully and this can often lead to disappointment upon retirement if they aren't looked after properly. However, silver provides a hassle-free option as it gains in value in the free market without any intervention. Of course, the prices of precious metals fluctuate over time but the steady trend is upwards with inflation.
The process is actually really simple these days as all you have to do is get in contact with a trusted custodian and they will do most of the work for you. You can provide directions along the way but all of the deals with be handled on your behalf. So, as you work hard towards your retirement, you will be safe in the knowledge that your stash of silver is steadily growing in value before then starting to make the withdrawals. It is generally advised that withdrawals are made soon after the 70th birthday with any before the 60th to receive a tax penalty.
Let's not forget that gold is also a good option for an IRA but silver is the one that is making all the headlines of late and that looks set to continue. Many industry experts have predicted that the good times will continue for silver up until 2020 which makes it a great time not only for IRAs but for general investment too.