Silver Bullion: Diversify Your IRA with Silver

Investors often attribute the general term “gold IRA” to a self-directed IRA that can hold a number of qualifying precious metals.  Gold, the most high-profile of the precious metals, can sometimes take center stage, but as we discuss precious metals investing, it’s important that we also take the time to examine silver bullion’s role in your portfolio.  

Like gold, silver is an excellent hedge against both inflation and global market instability.  In this post, we’ll cover five OTHER solid reasons to diversify your Gold IRA with silver bullion.

Silver Bullion In Your Emergency Stash.

There are a number of reasons why investors like silver. In survival situations, silver bullion coins and bars are the commodity of choice. This is because silver is sold in smaller denominations and can more readily be used for smaller purchases. In the event of a crisis or dollar collapse, you’ll want to barter with silver, not gold.  

Gold coins (even 1/10 oz ones) hold too much value to trade for everyday goods and services. If you only have access to gold bars and coins to trade for goods, you may be paying too much for that toilet paper…

Buy Low: Silver is More Volatile than Gold

Opening a gold or silver IRA? You’re likely approaching your investment strategy long term and are not interested in daily trading activity of these metals. But, if following the market closely, silver’s price volatility can work in your favor.  Price dips present huge opportunities for growth.

In recent years, we’ve seen silver bullion prices fluctuate BELOW mining cost.  By keeping an eye on gold and silver charts, savvy investors can lock in an excellent entry point positioned for huge gains in the next price swing. The current affordability of silver makes it an excellent investment as demand increases, and many consider silver under-valued.

Silver has Widespread Industrial Use

Silver is used in cell phones, computers, televisions and other electronics. The mirror in your bathroom has silver in it.  The commodity also has many medical applications, and of course is also used for jewelry and silverware.  The need for silver in manufacturing goods for our economy is high and only continuing to grow.

Silver is Scarce & Inventories are Low

As industrial demand continues to rise, silver inventories are low.  The US Mint continuously runs out of Silver Eagles.  Most of the silver mining is done in countries that lack infrastructure or stable governments. As the price of silver remains low, many miners can not operate profitably.  When mining operations are less profitable, mining companies taper production.  The scarcity along with the demand for silver make it an excellent investment long term.

China & Russia are Buying Silver

China and Russia continue to add more gold and silver to their reserves. These two nations want to challenge America’s standing as the world’s superpower.  These countries are aggressively hoarding precious metals, weakening their dependence on the US dollar and other fiat currencies.  Not only is Putin ex-KGB and a black belt in Judo, but he’s also an economist.

Silver, like gold, is recognized globally as a safe haven during times of uncertainty.  Silver is an excellent hedge against inflation, has intrinsic value and many industrial uses.  

Demand is high, and inventories are low, while still positioned at an attractive price.  As China and Russia add precious metals to their reserves, we suggest you do too. Thoughts?  Leave them in the comments.