Holding Silver With Goldco: Silver IRA Overview
Goldco offers silver for self-directed IRAs as well as gold. Eligible silver must generally be .999 fine, it is held by a custodian and stored at an independent insured depository, and Goldco lists coins such as the American Silver Eagle, Silver Maple Leaf, and Britannia. Silver behaves differently from gold, largely because so much of it is used in industry, so it is worth understanding on its own terms.
How Silver Differs From Gold
Silver is both a precious metal and an industrial input. The U.S. Geological Survey reports that major uses include electrical and electronic components, photovoltaic (solar) cells, brazing and soldering, and jewelry and silverware. Because demand is tied partly to manufacturing, silver's price can respond to economic activity in ways gold's does not.
Silver has historically been more volatile than gold, with larger percentage moves in both directions. Its price per ounce is also far lower, which means a given dollar amount buys much more physical metal. Both facts matter for an IRA: volatility affects how your statement value swings, and volume affects storage. For the bigger picture, see silver's industrial demand and the gold-to-silver ratio.
The .999 Silver Purity Rule
Under 26 U.S.C. 408(m), bullion held in an IRA must meet minimum fineness standards. For silver, the standard is .999. The statute also includes an exception for American Eagle coins. Most major sovereign silver bullion coins are struck at .999 or higher, but older coins, sterling items, and many collectible pieces are not, so they cannot go into an IRA. Our IRS purity standards guide covers the details.
Silver Coins Goldco Lists
Goldco's product pages include:
- American Silver Eagle from the U.S. Mint, along with a proof version.
- Silver Maple Leaf from the Royal Canadian Mint.
- Britannia from the Royal Mint.
- Silver bars and a range of themed and commemorative coins.
Goldco marks at least one silver coin on its site as not IRA eligible. That is a useful reminder: being sold by an IRA-focused company does not make a product eligible. Ask for written confirmation of eligibility for every item. Our silver coins at Goldco page explains premiums on themed coins, and IRA-eligible silver coins lists the general rules.
Storing Silver
Because silver is much bulkier per dollar than gold, storage deserves attention. A depository has to hold, count, and insure a larger physical quantity. Some depositories price storage by value and others by volume or a flat rate, so ask how the depository Goldco works with charges for silver specifically.
As with gold, IRA silver goes to an independent insured depository rather than your home. You may be offered segregated storage, where your coins are kept separately and the same items are returned to you, or non-segregated storage, where you are owed equivalent items of the same type. See segregated vs non-segregated storage.
Costs
Goldco's published fee statement, which also lists the IRA minimum, appears below as provided.
Gold IRA Fees
The required minimum purchase at Goldco to start a gold IRA is $25,000. Goldco’s preferred Custodian charges a flat annual account service fee which includes a one-time IRA account set-up fee of $50. as well as a $30 wire fee. Annual maintenance is $100, and storage is $150 for segregated storage or $100 for non-segregated storage.
Fees for gold storage and custodianship can vary depending on the company you select to handle these services (required by the IRS, as all IRA assets must be managed by a custodian). Depending on the Custodian, storage fees can range from $10 to $60 per month, or as a percentage of assets, from 0.35% to 1% annually.
Premiums on silver coins can be high relative to the metal value, especially for proof and commemorative pieces. On a percentage basis, silver premiums are often larger than gold premiums for comparable coins, which makes comparing the price per ounce important.
Questions to Ask Before Buying Silver
- What is the price per ounce for each silver product, and how does it compare with the spot price?
- Is each product IRA eligible, and will that be confirmed in writing?
- How does the depository charge for storing silver, by value or by volume?
- Will my coins be stored segregated or non-segregated?
- What are the written buyback terms for the specific coins I am buying?
Asking the same questions of every company you consider makes the answers comparable. Our questions to ask a precious metals company list has more.
Gold and Silver Together
Goldco customers can hold gold and silver in the same self-directed IRA. People who split between them usually do so to balance gold's lower volatility against silver's lower unit price and industrial exposure. There is no standard split, and a licensed financial professional is the right person to discuss your own mix. Holding gold with Goldco covers the gold side, and our Goldco review covers the company as a whole.
Frequently Asked Questions
Is the proof American Silver Eagle allowed in an IRA?
American Eagle coins fall under a specific statutory exception, but custodians may have their own requirements, such as original packaging. Confirm with Goldco and the custodian before purchase.
Why does silver need more storage space?
An ounce of silver is worth much less than an ounce of gold, so the same dollar amount means far more physical metal to store and insure.
Can I sell IRA silver back to Goldco?
Goldco advertises a buyback program for IRA-approved coins. Read its written terms, and compare quotes if you choose.