IRA-approved silver refers to specific types of physical silver, such as certain coins and bars, that meet the Internal Revenue Service (IRS) requirements for inclusion in a self-directed Individual Retirement Account (IRA).

For you as an investor, this means silver can serve as either an alternative to, or a complement alongside, traditional retirement assets like stocks and bonds.

In fact, when stocks plunged during the 2008 financial crisis, silver rose in value alongside gold, serving as a safe haven and a much-needed counterbalance to sharp equity declines.

That said, not just any silver qualifies. Only silver that meets the IRS’s strict criteria (more on that later) offers the protection, tax advantages, and legal compliance required for retirement accounts.

Benefits of a Silver IRA

Lower Entry Cost

Compared to gold, silver is significantly less expensive per ounce, and thus, more accessible to investors.

As of early 2025, trends show silver trading at approximately $30 per ounce and gold averaging over $2,700 per ounce — a very noticeable difference. This means you can purchase more silver for the same capital overlay.

Inflation Hedge & Diversification

Silver, like gold, has historically maintained purchasing power during inflationary periods. During the high inflation years of 1973–1980, silver prices rose from under $2 per ounce to an average of roughly $40 per ounce (even reaching a year high $50), illustrating its function as an inflation hedge.

At the same time, this event shows how silver doesn’t always move in sync with stocks, which makes it a strong diversifier (and a form of protection) for your retirement plan. If the stock market takes a hit, holding silver can help cushion the impact.

Tangible Asset

Unlike stocks or bonds, silver bullion is a physical asset with real, documented ownership, not just a digital balance that rises and falls with market swings.

Moreover, according to the World Silver Survey 2024, industrial demand for silver reached 654.4 million ounces in 2023 — an 11% increase from the previous year. This growth was largely driven by strong demand from industries like solar energy (photovoltaics), electronics, and medical technology.

This fact shows that silver isn’t just stored in vaults, but is consistently used in critical industries, adding long-term support for silver’s strength and value especially during periods of financial market stress.

Tax Advantages

Silver IRAs offer the same powerful tax benefits as traditional IRAs. That means your investment can grow without being taxed each year, allowing it to potentially build faster over time.

If you open a Traditional Silver IRA, your contributions may be tax-deductible now, and you won’t pay taxes on your gains until you withdraw them in retirement.

If you choose a Roth Silver IRA, you pay taxes upfront, but then enjoy tax-free growth and withdrawals later, as long as you follow the IRS rules.

How Does a Silver IRA Work?

Silver IRA vs Gold IRA

A Silver IRA investment is, functionally, the same as a Gold IRA. Both fall under the umbrella of self-directed IRAs (SDIRAs), which allow individuals to hold physical precious metals (gold, silver, platinum, or palladium) in tax-advantaged retirement accounts.

That means the term “Gold IRA” is mostly marketing shorthand. Silver is just as eligible an investment as gold, as long as it meets IRS standards.

Funding Your Silver IRA

The two most common methods to fund your Silver IRA are through transfers and rollovers.

Transfers

Transfers apply when an investor already has an existing IRA and wants to move those funds into a new SDIRA — in this case, a Silver IRA.

In this process, assets are moved directly from the current IRA custodian to a new custodian without the investor ever taking possession of the funds. That being said, it’s considered the simplest and safest way to fund a Silver IRA using existing retirement assets.

Rollovers

Rollovers, on the other hand, typically apply when an investor is moving funds from a qualified retirement plan — such as a 401(k), 403(b), or TSP — into a new SDIRA.

In this case, the account holder takes possession of the funds before redepositing them into the SDIRA. This can be quite tricky as it requires careful adherence to strict IRS guidelines like rollover timeframes and other eligibility criteria.

Role of Custodians and Approved Depositories

Custodians

Custodians are institutions approved by the IRS to help you set up and manage your Silver IRA. Their responsibilities include handling paperwork and logistics, complying with IRS rules, and processing transactions on your behalf.

What they are not is someone who gives investment advice or recommends specific products.

That kind of guidance — like helping you choose the right silver assets — is typically handled by a company that specializes in precious metals IRAs, like us here at Thor Metals Group. It’s just one part of the broader support we provide.

The IRS maintains a list of qualified custodians, all of whom are authorized to manage self-directed IRAs.

Approved Depositories

Approved depositories, on the other hand, are specialized storage facilities that are vetted and authorized to securely hold physical precious metals on behalf of IRA account holders.

Once the custodian completes the silver purchase, the metals are delivered to and stored in one of these depositories.

The IRS does not publish a public list of qualified depositories. It leaves the approval and oversight of depositories to the custodians. Some widely used, industry-trusted depositories include:

• Delaware Depository
• Brinks Global Services
• IDS (International Depository Services)
• CNT Depository
  

Criteria for Silver to Be IRA Approved

As discussed, only certain silver coins and bars meet the IRS’s strict criteria. Why is that so?

Think of it this way. If all types of silver were accepted into retirement accounts — regardless of purity, origin, or how they are stored — it would be easier for bad actors to slip in counterfeit or overvalued assets.

Below outlines specific IRS requirements under IRC Section 408 (m) to help protect your retirement savings and ensure your account stays compliant and tax-advantaged:

• Purity: Silver must be at least 99.9% pure (also referred to as .999 fine).
• Production: Coins and bars must be produced by a national government mint or by a refiner, assayer, or manufacturer that is accredited by NYMEX/COMEX, the London Bullion Market Association (LBMA), or other recognized commodity exchanges.
• Storage: All physical silver must be held in an IRS-approved depository. Home storage is prohibited under current IRS rules and may disqualify the account from tax-advantaged status.

IRA Approved Silver Coins and Bars

Some of the most common IRA eligible silver products — which are also available through Thor Metals Group — include:

• American Silver Eagle (U.S. Mint): The official silver bullion coin of the U.S., minted since 1986 with 0.999 purity, and widely considered the default choice for IRA investors
• Canadian Silver Maple Leaf (Royal Canadian Mint): Globally recognized North American bullion coin with .9999 purity, slightly higher than the American Silver Eagle.
• Australian Silver Kangaroo (Perth Mint): With .9999 purity and a design that features Australia’s iconic kangaroo, this coin has sparked strong collector interest since its debut in 2016.
• Silver Bars: A good choice for bulk investors trying to get more silver for their money, since these typically carry lower premiums than coins, regardless of condition or mint

Choosing the Right Silver for Your IRA

Coins vs. Bars

When deciding between coins and bars, think about what matters most to you. If you want liquidity and recognizability, especially when you might want to sell in the short term, silver coins are widely trusted and are generally easier to resell.

On the other hand, if your focus is on getting the most silver for your dollar and building up value over time, silver bars are a better investment as they come with lower premiums.

Differences in Ounces

Most silver held in IRAs comes in 1 oz coins or larger bars, which are considered the standard for retirement investing.

Smaller sizes like ½ oz, ¼ oz, or even 1/10 oz are available, but they’re less common in IRA portfolios due to higher premiums per ounce.

These fractional sizes are typically more appealing to collectors or to those interested in silver for smaller transactions or as a barter-ready asset in periods of economic uncertainty.

How to Invest IRA in Silver

Broadly speaking, opening a Silver IRA (or Gold IRA) involves three main steps:

1. Open a self-directed IRA with an approved custodian.
2. Fund your SDIRA through a transfer, rollover, or direct cash contribution.
3. Work with your custodian to choose your preferred silver products and coordinate the IRS-compliant storage process. They’ll also be responsible for maintaining compliance documentation and annual reporting.

Or, you can streamline all three steps into a single, guided process by working with a reputable Gold IRA company.

As we’ve outlined earlier, setting up a Silver IRA involves several moving parts, from navigating IRS regulations to selecting compliant silver products and arranging secure storage. These details can be time-consuming and complex.

With a trusted Gold IRA company, the key advantage is having a single point of coordination. At Thor Metals Group, for instance, we handle the communication with custodians, assist with product selection, and oversee the compliance process — so investors don’t have to manage it on their own.

Pros and Cons of a Silver IRA

Pros of Silver IRA

To sum up the earlier points, below are the key advantages that come with investing in a Silver IRA.

• Diversification: Adds a non-correlated asset class to a retirement portfolio.
• Inflation Protection: Silver tends to retain value during periods of currency devaluation.
• Physical Ownership: Investors own tangible metal, not a paper claim.
• Tax Benefits: Offers the same deferral or exemption benefits as other IRA types.
• Accessibility: Lower cost per ounce compared to gold.

Cons of Silver IRA

Of course, like any other investment, silver also has its cons and tradeoffs.

Storage Rules

Silver in an IRA must be stored in an IRS-approved depository, which means you won’t be able to touch the silver, and more importantly, you will have to pay annual storage fees, the rate depending on your custodian and storage type.

However, while you can’t hold it physically, you still get documented, verifiable ownership of real, tangible silver held in your name — something no paper asset can offer.

Price Volatility

Silver can swing more sharply in price than gold or stocks in the short term. For example, in March 2020, silver dropped below $12 per ounce, then surged to $29 by August. That’s more than a 100% swing in under six months.

However, when you zoom out and look at the long term, silver has shown stability similar to gold. So while there may be short-term dips, silver has historically held its purchasing power over time.

Limited Long-Term Growth Potential

Silver’s value increases only when its price rises. This makes it less of a high-growth asset compared to more energetic investments like stocks or real estate, which can generate both capital gains and recurring income.

Silver’s strength, as mentioned, lies in value preservation rather than aggressive portfolio growth, which eventually protects your retirement savings from inflation and market downturns.

Final Thoughts: Silver is a profitable IRA investment

Silver is often overshadowed by gold in retirement discussions, but it remains a financially sound option for portfolio diversification. It’s more affordable than gold, yet has consistently shown the ability to preserve value, particularly during market downturns.

If you’d like to explore how silver could support your long-term retirement goals — or if you’re looking for a professionally guided process to open a Silver IRA — feel free to contact Thor Metals Group and speak with a member of our team.