Buying gold is usually a preferred option for investors who want to protect themselves against inflation and exchange rate risk when buying silver ingots. Another alternative to buying gold is to invest in metals for electric vehicles such as nickel and cobalt. Silver, platinum and palladium together, often called “white metals”, are also highly sought after precious metals. Holding these assets in a self-directed IRA can add tax benefits and increase the size of your retirement savings.
Silver is still a tangible asset with intrinsic value. For example, in the state of Utah, it is still legal tender. Every year, millions of American Silver Eagle and Canadian Silver Maple Leaf coins are purchased as investments. On the other hand, almost half (45%) of the demand for silver is industrial.
In addition to coins, silver can be purchased in the form of bars and rounds. Investors can also increase their exposure by buying shares in publicly traded funds or in companies that search for silver and extract silver. Since it is valued more for its industrial uses than as a store of value, platinum has a shorter history in financial terms than gold or silver. The same is true for palladium.
This makes the market vulnerable to geopolitical upheavals, such as recent mining strikes and labor unrest in that country. The United States Mint issues platinum coins, including the American Platinum Eagle. It is also available at dealerships in the form of bars and rounds. Investors can also buy exchange-traded funds to expose themselves to platinum.
Of all the white precious metals, palladium is the most esoteric and the rarest. Palladium coins are available at U.S. mints. US, Canada and China, and ingots can be purchased in ingots or in the form of ingots.
Investors can also gain exposure through exchange-traded funds or by investing in palladium explorers. The automotive, electronics and solar industries require silver to manufacture their products. A short list includes electronic products, photovoltaics, medical devices, water purification and food hygiene. According to the Silver Institute, silver is used invisibly in all kinds of things, from washing machines to computers to furniture handles.
Platinum and palladium are used to manufacture catalytic converters and technological products ranging from LCD monitors to batteries, electrodes and hard disk drives. They also appear on dental and medical devices. In addition to being diverse, industries that use silver, platinum and palladium are all growing industries. This will ensure continued demand for these three metals.
For example, global car manufacturing, especially low-emission vehicles, has increased by approximately 5% so far this year (201). The margin for growth in the automotive market is especially strong in India and China, two countries with a particular interest in managing greenhouse gas emissions. In the U.S. In the U.S., the emphasis on shale oil exploration, which relies on converters to process shale gas, is another growing market for platinum and palladium.
The IRS approves certain precious metals as assets in an IRA. This includes specific American Eagle coins, as well as gold, silver, platinum, palladium and ingots that reach a certain fineness. However, the IRS requires that all precious metals in physical form be held by a bank or non-bank trustee approved by the IRS. Founded in 1976, Bankrate has a long history of helping people make smart financial decisions.
We've maintained this reputation for more than four decades by demystifying the financial decision-making process and giving people confidence in the steps they need to take next. One of the most emotionally satisfying ways to own gold is to buy it in ingots or coins. You'll have the satisfaction of looking at it and touching it, but owning it also has serious drawbacks if you own more than just a little. One of the biggest drawbacks is the need to safeguard and secure physical gold.
Every investment has advantages and disadvantages. If you are opposed to having physical gold, buying shares in a gold mining company may be a safer alternative. If you believe that gold can be a safe bet against inflation, investing in coins, ingots or jewelry are paths you can take to gold-based prosperity. Finally, if your primary interest is to use leverage to benefit from rising gold prices, the futures market may be your answer, but keep in mind that any holding based on leverage involves significant risk.