Silver is an interesting precious metal to include in your RRSP. It does more than offer you the advantages of safe haven protection. It also provides you with exposure to a metal that is a major industrial component. This means that as world economic activity increases, the demand rises for this precious metal and commodity that is also used in hundreds of industrial applications.
Rules and Regulations for Adding Silver to your RRSP
When you are ready to add silver to your RRSP, there are certain rules which you must follow. The CRA establishes these rules and enforces penalties if you do not. First you must use already existing money from your RRSP account to purchase the coins and bars. You can not simply take your own money to go buy the metals and send them into your RRSP administrator. Regal Assets will make all of the purchases on your behalf and also arrange for secure shipping of your metals. All that you have to do is provide the instructions as to which silver coins and bars you want. Regal Assets is happy to advise you on any of your transactions if you wish.
In order to add these precious metals, you will have to establish a self directed RRSP account. This is also known as a Silver RRSP. You also might roll over another existing RRSP account to Regal Assets into such a new account. With rollovers it is important keep in mind that you have a maximum of 60 days to turn in your funds to the new administrator once you receive them. If you exceed this time limit, then the IRS will treat this as a distribution and impose a 10% penalty plus taxes on the money you are attempting to transfer.
You can not simply keep your RRSP silver at home or in a local bank safe deposit box. Your silver coins and bars must be stored at a third party custodian depository. The CRA approves certain vaults as Silver RRSP storage vaults. Brinks and Delaware Depository are two of the best known and respected ones in the industry. They offer segregated storage options where your metals can be kept separately from everyone else’s inventory. It is important not to violate these rules and have your silver RRSP purchases treated as an early distribution with taxes and penalties.
RRSP Approved Silver Coins and Bars
Any coins that the CRA considers to be collectible will not be permitted in your RRSP. If a coin grading company such as NGC or PCGS has graded them, they are disallowed. There is also an approved list of foreign mints which are allowed to issue coins in your silver RRSP. Silver coins and bars which you include must be at least one ounce in size or bigger. The minimum purity level for them is 99.9% pure. The following silver coins and bars may be added to your Silver RRSP:
American Eagle Silver Coins
Canadian Maple Leaf Silver Coins
Austrian Philharmonic Silver Coins
Australian Kookaburra Silver Coins
Mexican Libertad Silver Coins
Johnson Matthey Silver Bar
Royal Canadian Mint Silver Bar
Benefits of Adding Silver to Your RRSP
Silver offers you many benefits for your retirement accounts. It is an excellent vehicle for preserving wealth. Silver effectively preserves the purchasing power of your dollars. Silver dollars that the government issued one hundred years before have gained more than ten times in value. Silver is also not only denominated in dollars. You can sell it in any country and any currency as you need. This gives it an advantage that your other traditional RRSP investments do not have.
Silver is actually rarer than gold in terms of how much of it is readily available. In many years, substantially more silver is used than is mined. Literally hundreds of medical, infrastructure, and high technology applications depend on it for its unique properties. This gives you a tangible and limited asset in your RRSP. It also provides you with exposure to the expanding world economy as silver demand rises with it.
Silver offers you a terrific hedge against inflation. It has safeguarded the wealth of investors like you not just for generations, but all through recorded history. Silver rises in value as dollars and other currencies lose value to inflation. This matters for your retirement portfolio as the U.S. dollar has declined more than 90% over the past half century when valued against tangible assets and precious metals like silver and gold.