WEBVTT 00:00:00.000 --> 00:00:02.520 Welcome back to the deep dive. Today, we're wading 00:00:02.520 --> 00:00:07.259 into some, uh, Very shiny, but I'd say arguably 00:00:07.259 --> 00:00:09.300 treacherous water. That's a good way to put it. 00:00:09.339 --> 00:00:11.179 We're talking about retirement planning, but 00:00:11.179 --> 00:00:12.839 not the boring stuff. You know, we aren't talking 00:00:12.839 --> 00:00:15.039 about mutual funds or those abstract numbers 00:00:15.039 --> 00:00:17.320 on a screen that you check once a quarter. No, 00:00:17.320 --> 00:00:18.960 today we're talking about the physical stuff, 00:00:19.179 --> 00:00:22.000 the treasure chest scenario. Exactly. I think 00:00:22.000 --> 00:00:24.679 everyone has this fantasy, right? You picture 00:00:24.679 --> 00:00:27.000 your retirement savings not as a spreadsheet, 00:00:27.239 --> 00:00:30.440 but as like a literal vault. You walk in, it's 00:00:30.440 --> 00:00:33.899 cold, it's quiet, and there are stacks of silver 00:00:33.899 --> 00:00:38.280 bars and coins. It feels real. It feels secure 00:00:38.280 --> 00:00:41.039 in a way. A 401k statement just never does. It 00:00:41.039 --> 00:00:44.600 has a very primal appeal, tangible wealth. But 00:00:44.600 --> 00:00:46.399 here's the reality check we're dealing with today. 00:00:46.520 --> 00:00:48.820 If you try to build that treasure chest inside 00:00:48.820 --> 00:00:51.880 a tax advantaged account, like an IRA, You are 00:00:51.880 --> 00:00:54.740 walking into a minefield of government regulation. 00:00:55.039 --> 00:00:56.560 That's what I gathered from the reading. It seems 00:00:56.560 --> 00:00:58.460 like you can't just throw any old silver coin 00:00:58.460 --> 00:01:00.799 into the chest. If you pick the wrong one, the 00:01:00.799 --> 00:01:04.000 IRS doesn't just say no. They say, pay us. And 00:01:04.000 --> 00:01:07.519 they say it loudly. So to help us navigate this, 00:01:07.680 --> 00:01:10.040 we're looking at a comprehensive breakdown by 00:01:10.040 --> 00:01:12.359 Doug Young. He's a financial markets researcher 00:01:12.359 --> 00:01:15.359 over 20 years in the game. And he spent, what, 00:01:15.420 --> 00:01:18.049 the last decade and a half? specifically focused 00:01:18.049 --> 00:01:21.310 on gold and silver IRAs. Right. Doug is essentially 00:01:21.310 --> 00:01:24.569 the guy who reads the fine print in the IRS tax 00:01:24.569 --> 00:01:27.900 code so you don't have to. Perfect. So our mission 00:01:27.900 --> 00:01:30.879 today is pretty simple. We are going to decode 00:01:30.879 --> 00:01:33.879 his research to figure out exactly what belongs 00:01:33.879 --> 00:01:35.939 in that treasure chest. What's good, silver? 00:01:35.980 --> 00:01:39.280 What's bad, silver? And why the date 2013 matters 00:01:39.280 --> 00:01:41.540 so much if you happen to like British coins. 00:01:41.739 --> 00:01:44.480 I saw that note. Yeah, that's a wild, specific 00:01:44.480 --> 00:01:46.599 detail. We'll definitely get to that. But before 00:01:46.599 --> 00:01:49.379 we get to the specific coins, we need to understand 00:01:49.379 --> 00:01:51.319 the rules of the road, because I think a lot 00:01:51.319 --> 00:01:53.640 of people, myself included, just assume silver 00:01:53.640 --> 00:01:58.209 is silver. Right. Yeah. If I have a silver bar, 00:01:58.290 --> 00:02:01.090 why does the IRS care which one it is? They care 00:02:01.090 --> 00:02:03.230 because the IRS isn't a coin collector. They're 00:02:03.230 --> 00:02:07.170 a tax agency. And for an asset to sit in a retirement 00:02:07.170 --> 00:02:09.689 account, it needs to have a standardized clear 00:02:09.689 --> 00:02:14.169 market value. So Young identifies three golden 00:02:14.169 --> 00:02:16.370 rules, or I guess we should call them silver 00:02:16.370 --> 00:02:19.129 rules, that act as the gatekeeper. OK, let's 00:02:19.129 --> 00:02:21.150 break these down. What's the first barrier to 00:02:21.150 --> 00:02:24.930 entry? It's all about purity. This is the big 00:02:24.930 --> 00:02:27.550 one. The non -negotiable number. And how pure 00:02:27.550 --> 00:02:30.069 is pure? For silver to be eligible, it must be 00:02:30.069 --> 00:02:35.629 99 .9 % pure. 99 .9, wow. That seems incredibly 00:02:35.629 --> 00:02:37.750 high. I mean, I look at my silverware or jewelry 00:02:37.750 --> 00:02:39.629 and it usually says sterling. Isn't that enough? 00:02:39.830 --> 00:02:43.750 Not even close. Sterling silver is .925. Uh -huh. 00:02:43.909 --> 00:02:47.689 So 92 .5 % silver. Oh. The rest is usually copper 00:02:47.689 --> 00:02:49.710 to make it harder, which is great for a fork. 00:02:49.770 --> 00:02:51.250 You don't want it to bend. Right, when you're 00:02:51.250 --> 00:02:53.560 eating a steak or something. But it's garbage 00:02:53.560 --> 00:02:56.080 to the IRS. Even those old cowboy dollars you 00:02:56.080 --> 00:02:58.319 see in movies. Those are usually 90 % silver. 00:02:58.739 --> 00:03:01.400 Also, not good enough. So why the obsession with 00:03:01.400 --> 00:03:02.960 the extra nines? Why do they care if there's 00:03:02.960 --> 00:03:04.759 a little copper in there? It comes down to a 00:03:04.759 --> 00:03:07.199 concept called fungibility. Okay, that's a $5 00:03:07.199 --> 00:03:09.939 word. Break that down for me. Fungibility just 00:03:09.939 --> 00:03:12.639 means that one unit of something is interchangeable 00:03:12.639 --> 00:03:15.159 with another unit of the same thing. A dollar 00:03:15.159 --> 00:03:17.360 bill is fungible. My dollar is worth exactly 00:03:17.360 --> 00:03:19.479 the same as your dollar. Right. The government 00:03:19.479 --> 00:03:21.500 wants to know that one ounce of silver in your 00:03:21.500 --> 00:03:24.139 account is worth exactly the same as one ounce 00:03:24.139 --> 00:03:26.780 of silver in my account. impurities mess that 00:03:26.780 --> 00:03:29.439 up. They make the value subjective. So you'd 00:03:29.439 --> 00:03:31.819 need like an appraiser to figure out how much 00:03:31.819 --> 00:03:36.439 is actually in there. Exactly. But 99 .9 % pure 00:03:36.439 --> 00:03:39.599 silver. That's a raw commodity. It has a specific 00:03:39.599 --> 00:03:41.819 global price. Okay, that actually makes sense. 00:03:41.939 --> 00:03:43.419 They want it to be liquid. They don't want you 00:03:43.419 --> 00:03:45.699 holding weird antiques that take six months to 00:03:45.699 --> 00:03:48.860 sell. So rule one, it has to be virtually pure. 00:03:49.219 --> 00:03:51.960 What's rule two? Certification. You can't just 00:03:51.960 --> 00:03:53.939 refine silver in your basement, pour it into 00:03:53.939 --> 00:03:56.879 a mold, and scratch 99 .9 on it. There goes my 00:03:56.879 --> 00:03:58.919 weekend plan. I was going to fire up the kiln. 00:03:59.039 --> 00:04:01.120 Yeah, you have to shut it down. The silver must 00:04:01.120 --> 00:04:03.259 be certified by a recognized manufacturer or 00:04:03.259 --> 00:04:06.500 have a hallmark from a major exchange. The source 00:04:06.500 --> 00:04:10.659 lists the big ones. ComEx, NYMEX, the LBMA in 00:04:10.659 --> 00:04:12.680 London. So it needs a pedigree, a paper trail. 00:04:13.240 --> 00:04:16.500 Exactly. It needs a stamp that guarantees that 00:04:16.500 --> 00:04:19.639 purity we just talked about. Without it, The 00:04:19.639 --> 00:04:22.800 market and the IRS won't trust it. And the third 00:04:22.800 --> 00:04:25.600 rule. Condition. This one actually catches people 00:04:25.600 --> 00:04:28.480 off guard. The silver must be in good condition. 00:04:28.620 --> 00:04:31.959 Define good. Free of damage, no heavy scratches, 00:04:32.220 --> 00:04:34.759 no dents, no excessive wear. See, that feels 00:04:34.759 --> 00:04:37.160 subjective to me and honestly a little unfair. 00:04:37.319 --> 00:04:40.279 If I have a pure silver bar and I drop it and 00:04:40.279 --> 00:04:42.560 it gets a dent, it's still the same amount of 00:04:42.560 --> 00:04:44.740 silver, isn't it? It is. The atoms haven't gone 00:04:44.740 --> 00:04:47.139 anywhere. Why does the IRS care if it's ugly? 00:04:47.420 --> 00:04:49.600 You're thinking like a chemist. The IRS is thinking 00:04:49.600 --> 00:04:53.079 like an accountant. If an asset is damaged, its 00:04:53.079 --> 00:04:55.899 resale value drops. An IRA is a financial vehicle. 00:04:56.360 --> 00:04:59.040 If the assets inside it are degraded, the value 00:04:59.040 --> 00:05:01.240 of the account is compromised. So they insist 00:05:01.240 --> 00:05:03.720 on unimpaired quality. OK, so we have the framework. 00:05:04.040 --> 00:05:06.980 99 .9 % pure, certified source, good condition. 00:05:07.040 --> 00:05:08.579 Now I want to get to the fun part, the actual 00:05:08.579 --> 00:05:10.699 loot. What can we actually put in the chest? 00:05:10.920 --> 00:05:13.300 Let's start with coins. This is the most popular 00:05:13.300 --> 00:05:15.819 entry point. And according to Young's analysis, 00:05:16.579 --> 00:05:19.540 the heavyweight champion of the world is undoubtedly 00:05:19.540 --> 00:05:22.300 the American silver eagle. The American standard. 00:05:22.519 --> 00:05:24.939 It really is. Yeah. It's minted by the US Mint. 00:05:25.300 --> 00:05:28.180 It hits that purity requirement perfectly. And 00:05:28.180 --> 00:05:30.639 it is arguably the most recognized silver coin 00:05:30.639 --> 00:05:33.279 on the planet. And being recognized matters when 00:05:33.279 --> 00:05:35.560 you try to sell it, right? Hugely. It's about 00:05:35.560 --> 00:05:38.120 liquidity. You can sell an American eagle anywhere 00:05:38.120 --> 00:05:40.839 in the world. A coin dealer in Tokyo or London 00:05:40.839 --> 00:05:43.319 knows exactly what it is. Got it. Now, there's 00:05:43.319 --> 00:05:45.800 nuance here the source mentions. You can also 00:05:45.800 --> 00:05:47.879 buy a proof version of the eagle. Proof just 00:05:47.879 --> 00:05:50.860 means shiny, right? Basically. It's struck multiple 00:05:50.860 --> 00:05:53.220 times to give it a mirror -like background. It's 00:05:53.220 --> 00:05:55.500 designed for collectors. The source notes that 00:05:55.500 --> 00:05:57.560 these are allowed in an IRA. But should you? 00:05:57.639 --> 00:05:59.959 I mean, if it's just silver, why pay extra for 00:05:59.959 --> 00:06:02.720 the shine? That's the real question. Proof coins 00:06:02.720 --> 00:06:05.360 carry a higher premium. You pay more for the 00:06:05.360 --> 00:06:08.250 craftsmanship. But the silver content is the 00:06:08.250 --> 00:06:10.649 same as the regular bullion version. So if your 00:06:10.649 --> 00:06:12.970 goal is just to stack silver, the regular version 00:06:12.970 --> 00:06:15.470 is more efficient. Right. And if you want something 00:06:15.470 --> 00:06:17.990 pretty to look at, well, actually, you can't 00:06:17.990 --> 00:06:19.709 look at it. Oh, right. Because it's locked in 00:06:19.709 --> 00:06:21.310 a vault somewhere. We'll get to the storage rules 00:06:21.310 --> 00:06:22.910 later. But that's a great point. You're paying 00:06:22.910 --> 00:06:24.870 for a finish you can't even admire on your coffee 00:06:24.870 --> 00:06:27.329 table. It's not the most efficient use of your 00:06:27.329 --> 00:06:30.009 investment dollars, no. But let's look internationally. 00:06:30.569 --> 00:06:33.709 The IRS is surprisingly cosmopolitan, as long 00:06:33.709 --> 00:06:36.709 as the purity holds up. OK. And this is where 00:06:36.709 --> 00:06:39.310 we see some countries kind of showing off. Take 00:06:39.310 --> 00:06:42.550 Canada. The maple leaf. The Canadian silver maple 00:06:42.550 --> 00:06:45.769 leaf. Now listen to this distinction. The American 00:06:45.769 --> 00:06:51.389 eagle is .999 pure. The Canadian maple leaf is 00:06:51.389 --> 00:06:55.269 .999 pure. The four nines. The four nines. It 00:06:55.269 --> 00:06:57.550 is technically pure. Does that make a massive 00:06:57.550 --> 00:07:00.670 difference in price? Not really. But for the 00:07:00.670 --> 00:07:03.819 purists, it's a flex. by the Royal Canadian Mint. 00:07:04.319 --> 00:07:06.319 They're basically saying, we can refine this 00:07:06.319 --> 00:07:09.220 better than anyone else. I noticed the list also 00:07:09.220 --> 00:07:12.240 included the Austrian Vienna Philharmonic. Yes, 00:07:12.439 --> 00:07:15.439 the only major bullion coin denominated in euros. 00:07:15.819 --> 00:07:18.620 It's beautiful instruments on one side, the great 00:07:18.620 --> 00:07:20.980 organ of the Musikherin Konzer Hall on the other. 00:07:21.230 --> 00:07:23.550 I like the idea of having a little culture in 00:07:23.550 --> 00:07:26.149 the portfolio. It feels sophisticated. It does. 00:07:26.550 --> 00:07:28.689 And then you have the Australian coins from the 00:07:28.689 --> 00:07:32.170 Perth mint, the silver koalas, the kookaburras, 00:07:32.610 --> 00:07:34.449 and the lunar series. The lunar series is the 00:07:34.449 --> 00:07:36.589 zodiac animals, right? Right. You're the dragon. 00:07:36.689 --> 00:07:38.829 You're the snake. You could literally have a 00:07:38.829 --> 00:07:41.910 zoo in your IRA. Pandas, koalas, snakes. You 00:07:41.910 --> 00:07:44.370 could. The Chinese silver panda is another eligible 00:07:44.370 --> 00:07:47.050 one. And what's cool about the panda is the design 00:07:47.050 --> 00:07:49.430 changes every year. Which usually makes things 00:07:49.430 --> 00:07:51.350 collectible, doesn't it? And I thought collectibles 00:07:51.350 --> 00:07:53.529 were banned. It's a gray area that lands on the 00:07:53.529 --> 00:07:56.350 safe side. Because it's a standard government 00:07:56.350 --> 00:07:59.250 issued bullion coin, it slips through the gate. 00:07:59.970 --> 00:08:02.110 Interesting. But and here's where it gets really 00:08:02.110 --> 00:08:05.449 tricky. You have to be so careful. Just because 00:08:05.449 --> 00:08:08.209 a country makes a silver coin doesn't mean every 00:08:08.209 --> 00:08:10.670 version of that coin is allowed. OK, this is 00:08:10.670 --> 00:08:12.209 where we get to the traps. I read this part of 00:08:12.209 --> 00:08:15.110 Doug Young's report twice. There's a specific 00:08:15.110 --> 00:08:17.639 trap with the silver Britannia. This is the kind 00:08:17.639 --> 00:08:19.500 of detail where you really need an expert. If 00:08:19.500 --> 00:08:21.740 you try to do this yourself, you will get burned. 00:08:22.360 --> 00:08:24.100 Okay. The silver Britannia is a classic coin, 00:08:24.620 --> 00:08:28.120 but prior to 2013, the Royal Mint made them with 00:08:28.120 --> 00:08:33.480 .958 silver. .958, that is such a random number. 00:08:33.580 --> 00:08:35.320 It's historically known as Britannia silver. 00:08:35.419 --> 00:08:37.340 It's an old standard, but remember the golden 00:08:37.340 --> 00:08:42.480 rule. 99 .9%. Exactly. So .958 fails. It wasn't 00:08:42.480 --> 00:08:45.700 until 2013 that the Royal Mint upgraded the purity 00:08:45.899 --> 00:08:50.820 to .999. So if I buy a 2012 Britannia, it's a 00:08:50.820 --> 00:08:53.700 prohibited asset and I get fined. But a 2014 00:08:53.700 --> 00:08:56.519 Britannia is perfectly fine. You got it. That 00:08:56.519 --> 00:08:58.320 is terrifyingly specific. You're talking about 00:08:58.320 --> 00:09:00.279 a one year difference that could disqualify your 00:09:00.279 --> 00:09:03.019 entire account. It shows that the IRS looks at 00:09:03.019 --> 00:09:05.179 chemistry, not history. They don't care that 00:09:05.179 --> 00:09:07.539 it's a Britannia. They care about the ally composition. 00:09:07.799 --> 00:09:09.539 Are there other traps like that? The other big 00:09:09.539 --> 00:09:12.100 one is the Old West trap. People love Morgan 00:09:12.100 --> 00:09:14.379 dollars and peace dollars. They feel like real 00:09:14.379 --> 00:09:16.500 money. Yeah, they're heavy. They have history. 00:09:16.639 --> 00:09:20.679 But they are 90 % silver. So they are out. Generally, 00:09:21.259 --> 00:09:23.980 yes. Young Note's a very rare exception. There 00:09:23.980 --> 00:09:27.299 are select modern mintings that hit the 99 .9 00:09:27.299 --> 00:09:30.620 % mark, but they are incredibly rare. For the 00:09:30.620 --> 00:09:32.840 most part, stay away. OK, so unless I really 00:09:32.840 --> 00:09:36.799 know what I'm doing, stick to modern high -purity 00:09:36.799 --> 00:09:40.200 coins. But let's ship gears. What if I don't 00:09:40.200 --> 00:09:42.039 care about the pretty pictures? You just won't 00:09:42.039 --> 00:09:44.019 wait. I just won't wait. I want to get the most 00:09:44.019 --> 00:09:46.580 silver for my dollar. Then you graduate to bars. 00:09:46.820 --> 00:09:48.960 Bars are the choice for efficiency. Why is that? 00:09:49.019 --> 00:09:51.679 It comes down to two terms. Spot price and premium. 00:09:51.899 --> 00:09:54.799 Break those down? The spot price is the raw market 00:09:54.799 --> 00:09:57.059 value of the silver. Yeah. The premium is everything 00:09:57.059 --> 00:09:59.580 else. The cost to shape it, stamp it, ship it, 00:09:59.679 --> 00:10:01.659 and the dealer's profit. Right. It costs more 00:10:01.659 --> 00:10:04.320 money to mint a coin, to stamp an eagle on it, 00:10:04.519 --> 00:10:06.759 than it does to pour a simple rectangular bar. 00:10:06.840 --> 00:10:09.279 That makes sense. So coins have a higher premium. 00:10:09.539 --> 00:10:12.100 Bars have a lower premium. When you buy a bar, 00:10:12.240 --> 00:10:14.220 More of your money is going toward the actual 00:10:14.220 --> 00:10:17.159 silver. So if I have $50 ,000 to invest, I get 00:10:17.159 --> 00:10:19.440 more actual silver if I buy bars than if I buy 00:10:19.440 --> 00:10:23.139 Eagles. Precisely. It's the bulk discount approach. 00:10:23.480 --> 00:10:25.720 But again, you can't just buy any bar. Names 00:10:25.720 --> 00:10:28.299 matter. Who are the approved players? The source 00:10:28.299 --> 00:10:33.759 lists the heavy hitters. Johnson Mathia. PMP 00:10:33.759 --> 00:10:35.620 Suisse. You'll recognize them. They often have 00:10:35.620 --> 00:10:38.120 Lady Fortuna on the bar. A little goddess of 00:10:38.120 --> 00:10:40.220 luck for the retirement fund. I like it. Never 00:10:40.220 --> 00:10:42.929 hurts. And there's sunshine minting. Young points 00:10:42.929 --> 00:10:44.710 out a really cool feature with their 10 ounce 00:10:44.710 --> 00:10:47.210 bars. They have something called mint mark SI. 00:10:47.549 --> 00:10:50.450 Is that a security thing? It is. It's a grow 00:10:50.450 --> 00:10:52.409 engraving you can only see with a special decoder 00:10:52.409 --> 00:10:55.429 lens. It proves the bar isn't a fake. Which is 00:10:55.429 --> 00:10:57.330 pretty important. In a world where you might 00:10:57.330 --> 00:11:00.289 be storing this for 20 years, proving authenticity 00:11:00.289 --> 00:11:02.750 is everything. I also saw one on the list that 00:11:02.750 --> 00:11:06.679 sounded surprisingly green. OPM. Ohio Precious 00:11:06.679 --> 00:11:08.860 Metals. Yeah. This is a fascinating option for 00:11:08.860 --> 00:11:11.320 the eco -conscious investor. Mining silver is 00:11:11.320 --> 00:11:14.299 a dirty business. Right. OPM produces bars using 00:11:14.299 --> 00:11:16.940 recycled silver. Recycled? Like from electronics? 00:11:17.460 --> 00:11:20.340 Industrial scrap, old jewelry, photographic chemicals, 00:11:20.720 --> 00:11:23.000 yeah. They refine it back up to that perfect 00:11:23.000 --> 00:11:26.580 .999 purity. So you get the asset security, but 00:11:26.580 --> 00:11:28.100 you aren't digging a new hole in the ground to 00:11:28.100 --> 00:11:30.740 get it. That is a great option. It feels good 00:11:30.740 --> 00:11:34.350 to have an ethical choice. Okay, we've covered 00:11:34.350 --> 00:11:36.129 the good stuff. Now we need to talk about the 00:11:36.129 --> 00:11:38.830 bad list. The term in the report that I think 00:11:38.830 --> 00:11:41.950 confuses a lot of people is collectibles. This 00:11:41.950 --> 00:11:46.350 is the biggest pitfall. The IRS strictly forbids 00:11:46.350 --> 00:11:48.950 collectibles in an IRA. But wait, you just said 00:11:48.950 --> 00:11:51.370 the pandas are collectible. Isn't that a contradiction? 00:11:51.610 --> 00:11:54.690 It is a bit confusing. When the IRS says collectible 00:11:54.690 --> 00:11:57.289 in the context of what is banned, they're usually 00:11:57.289 --> 00:11:59.669 referring to items where the value is detached 00:11:59.669 --> 00:12:02.090 from the metal. And the biggest trap here is 00:12:02.090 --> 00:12:05.289 slabbed coins. Describe a slabbed coin for me. 00:12:05.309 --> 00:12:08.190 You've seen them. It's a coin encased in a hard, 00:12:08.470 --> 00:12:10.909 tamper -proof plastic holder. It has a label 00:12:10.909 --> 00:12:14.169 at the top with a grade like MS -70. Mint state 00:12:14.169 --> 00:12:16.350 70. And that means it's perfect, right? It means 00:12:16.350 --> 00:12:19.289 it's visually flawless. And because it's flawless, 00:12:19.870 --> 00:12:22.370 collectors pay a huge premium for it. A regular 00:12:22.370 --> 00:12:27.049 silver eagle might cost $35. A slabbed MS -70 00:12:27.049 --> 00:12:29.950 eagle might cost $100 or more. So why does the 00:12:29.950 --> 00:12:33.190 IRS hate them? Because the IRS only recognizes 00:12:33.190 --> 00:12:35.980 the metal value. Oh. If you put that $100 coin 00:12:35.980 --> 00:12:38.679 in your IRA, the IRS looks at it and says, that's 00:12:38.679 --> 00:12:41.940 $35 worth of silver. Ouch. So you're taking a 00:12:41.940 --> 00:12:43.879 loss immediately, in their eyes. In the eyes 00:12:43.879 --> 00:12:46.799 of the tax code, yes. The source explicitly states 00:12:46.799 --> 00:12:49.500 that slaved or certified coins are generally 00:12:49.500 --> 00:12:51.879 not acceptable. The premium you pay for that 00:12:51.879 --> 00:12:54.120 plastic case is dead weight. You're paying for 00:12:54.120 --> 00:12:56.980 a grade. Not for silver. That is a crucial distinction. 00:12:57.200 --> 00:12:59.399 You are investing in silver, not in plastic. 00:12:59.600 --> 00:13:01.899 What about jewelry? Can I put grandma's antique 00:13:01.899 --> 00:13:04.600 silver necklace in the IRA? Absolutely not. No 00:13:04.600 --> 00:13:06.759 jewelry, no silverware, no plated items. Why? 00:13:07.159 --> 00:13:09.179 Valuation. How do you price a necklace? It's 00:13:09.179 --> 00:13:12.519 subjective. And the purity is almost never .999. 00:13:13.080 --> 00:13:14.940 So keep the necklace in the jewelry box, not 00:13:14.940 --> 00:13:16.980 the IRA. And just to be clear, what happens if 00:13:16.980 --> 00:13:19.820 I mess this up? What if I sneak a 2010 Britannia 00:13:19.820 --> 00:13:22.299 in there? It's not a slap on the wrist. Doug 00:13:22.299 --> 00:13:24.899 Young is very clear on this. You're looking at 00:13:24.899 --> 00:13:27.480 penalties, fines, and potential tax implications. 00:13:28.220 --> 00:13:31.379 In a worst -case scenario, the IRS could disqualify 00:13:31.379 --> 00:13:34.480 the entire IRA. Disqualify the entire IRA, so 00:13:34.480 --> 00:13:36.759 the whole thing becomes taxable immediately? 00:13:36.840 --> 00:13:38.740 Potentially. It's called a prohibited transaction. 00:13:38.860 --> 00:13:40.759 It's like popping the balloon of your tax shelter. 00:13:41.320 --> 00:13:43.279 All the air goes out, and you're left with a 00:13:43.279 --> 00:13:46.039 massive tax bill. Okay, scare tactic effective. 00:13:46.519 --> 00:13:49.159 I will stick to the list. Now, I want to pivot 00:13:49.159 --> 00:13:52.639 to the how. Let's say I'm convinced. I want to 00:13:52.639 --> 00:13:54.639 buy some bars and some maples. Can I just buy 00:13:54.639 --> 00:13:56.419 them online and put them in my safe at home? 00:13:56.580 --> 00:13:58.659 Stop right there. That is the home storage rule, 00:13:59.039 --> 00:14:01.000 and it is the fastest way to get in trouble. 00:14:01.259 --> 00:14:04.100 Why? It's my retirement. Why can't I hold it? 00:14:04.320 --> 00:14:06.879 It comes back to the tax advantage status. The 00:14:06.879 --> 00:14:09.879 IRS requires a strict chain of custody. First, 00:14:10.039 --> 00:14:11.899 you can't contribute assets you already own. 00:14:12.100 --> 00:14:14.259 Okay. You have to use cash in the IRA to buy 00:14:14.259 --> 00:14:16.379 new metal. Okay, so I buy new metal. Can I have 00:14:16.379 --> 00:14:19.340 it shipped to my house? No. You cannot be the 00:14:19.340 --> 00:14:22.360 custodian of your own IRA assets. It must be 00:14:22.360 --> 00:14:25.700 stored in an IRS approved depository. So no burying 00:14:25.700 --> 00:14:27.580 it in the backyard. No backyard, no mattress, 00:14:27.779 --> 00:14:30.639 no home safe. If you take personal possession 00:14:30.639 --> 00:14:33.580 of the silver, the IRS considers that a distribution. 00:14:33.840 --> 00:14:36.960 Which means taxes. Taxes and penalties. It effectively 00:14:36.960 --> 00:14:40.460 dissolves the IRA status. The whole point of 00:14:40.460 --> 00:14:42.639 the depository is that there's a third party 00:14:42.639 --> 00:14:46.059 verifying, yes, the silver is here and the owner 00:14:46.059 --> 00:14:49.460 hasn't touched it. We've focused heavily on silver 00:14:49.460 --> 00:14:52.580 today, but obviously most people hear precious 00:14:52.580 --> 00:14:56.399 metals IRA and think gold Why would someone choose 00:14:56.399 --> 00:14:59.059 silver over gold? That's a great question. Yeah, 00:14:59.159 --> 00:15:01.679 the source breaks this down The biggest argument 00:15:01.679 --> 00:15:04.399 for silver is affordability. It's cheaper much 00:15:04.399 --> 00:15:07.740 cheaper per ounce If you have say $2 ,000, you 00:15:07.740 --> 00:15:10.840 might get a tiny coin of gold the size of a fingernail 00:15:10.879 --> 00:15:12.940 For that same money, you could get a substantial 00:15:12.940 --> 00:15:15.480 stack of silver bars. It feels more substantial. 00:15:15.759 --> 00:15:17.460 Psychologically, that matters. Though. But there's 00:15:17.460 --> 00:15:19.460 also the industrial argument. Silver is used 00:15:19.460 --> 00:15:21.659 in everything. Solar panels, batteries, electronics, 00:15:22.039 --> 00:15:24.159 medicine. So the price is driven by industry, 00:15:24.379 --> 00:15:26.899 not just investors. Correct. Which leads to the 00:15:26.899 --> 00:15:29.539 downside. Volatility. The price jumps around. 00:15:29.899 --> 00:15:32.340 Gold is like a steady grandfather. It holds its 00:15:32.340 --> 00:15:34.879 ground. Silver is like an energetic teenager. 00:15:35.320 --> 00:15:37.639 It can spike up fast when industries need it, 00:15:37.860 --> 00:15:40.080 but it can crash hard too. So if you have a weak 00:15:40.080 --> 00:15:43.220 stomach, maybe don't go 100 % silver. Exactly. 00:15:43.519 --> 00:15:45.360 And Young points out you don't have to choose. 00:15:45.700 --> 00:15:48.340 You can diversify within the metal IRA. You can 00:15:48.340 --> 00:15:51.039 hold gold, silver, platinum, and palladium all 00:15:51.039 --> 00:15:53.340 in the same chest. Just checking, do platinum 00:15:53.340 --> 00:15:56.460 and palladium have crazy purity rules too? Even 00:15:56.460 --> 00:16:00.360 stricter, .9995. So don't guess on those either. 00:16:00.519 --> 00:16:02.419 So what does this all mean for the listener? 00:16:02.679 --> 00:16:05.320 We've covered purity, the date traps, the danger 00:16:05.320 --> 00:16:08.659 of slab collectibles, the storage rules. It really 00:16:08.659 --> 00:16:11.399 comes down to precision. The IRS has carved out 00:16:11.399 --> 00:16:14.000 a very specific niche where treasure meets tax 00:16:14.000 --> 00:16:16.440 code. If you stay within the lines, buy the Eagles, 00:16:16.580 --> 00:16:19.220 buy the bars, use a custodian, it's a powerful 00:16:19.220 --> 00:16:21.159 way to diversify. But if you try to get cute, 00:16:21.279 --> 00:16:24.259 if you try to sneak in that 2012 Britannia or 00:16:24.259 --> 00:16:26.440 stash the gold in your basement? You turn a tax 00:16:26.440 --> 00:16:29.620 shelter into a tax liability. And honestly, the 00:16:29.620 --> 00:16:31.679 biggest takeaway from Doug Young's research is 00:16:31.679 --> 00:16:34.519 the importance of having a guide. The difference 00:16:34.519 --> 00:16:37.559 between a compliant asset and a prohibited one 00:16:37.559 --> 00:16:40.549 can be a decimal point in purity. It's not the 00:16:40.549 --> 00:16:43.029 time to DIY it completely. You know, there is 00:16:43.029 --> 00:16:44.830 one final thought I'd like to leave you with. 00:16:45.289 --> 00:16:47.350 It's something that struck me while reading about 00:16:47.350 --> 00:16:50.269 these chemical purity standards. Go for it. We 00:16:50.269 --> 00:16:53.409 spend our whole lives looking at coins as money. 00:16:53.909 --> 00:16:55.970 A quarter is 25 cents because the government 00:16:55.970 --> 00:16:59.669 says so. Right. But in a silver IRA, the government 00:16:59.669 --> 00:17:01.409 stops looking at these things as currency and 00:17:01.409 --> 00:17:04.089 starts looking at them purely as chemical elements. 00:17:04.150 --> 00:17:05.849 That's true. They don't care about the face value. 00:17:05.890 --> 00:17:08.329 They care about the atomic structure. Exactly. 00:17:08.539 --> 00:17:11.839 A coin in your pocket is a token of trust. A 00:17:11.839 --> 00:17:15.119 coin in your IRA is a raw material. It's a shift 00:17:15.119 --> 00:17:19.380 from legal tender to tangible reality. And in 00:17:19.380 --> 00:17:21.299 a digital world, I think that is exactly why 00:17:21.299 --> 00:17:23.500 people are drawn to it. That is a deep thought 00:17:23.500 --> 00:17:27.019 to end on. From in God we trust to in chemistry 00:17:27.019 --> 00:17:29.700 we trust. Something like that. Well, that wraps 00:17:29.700 --> 00:17:32.819 up our deep dive into silver IRAs. Thanks for 00:17:32.819 --> 00:17:34.799 listening and we'll catch you on the next one.