Scary words like “economic uncertainty” and “inflation” are now part of our everyday vocabulary, but protect and grow your portfolio. Electronics, medicine, solar panels, engines, and water purification are all becoming a more significant part of our future — all containing silver. The only question is, why aren’t you invested in silver already?
Wondering how to invest in silver? You’re not alone. More Americans began diversifying their investments after the 2008 financial crisis that crashed the stock market. Those who included silver in their portfolios have seen its value nearly doubled since then, and with more industries using it for materials, the trend is likely to continue.
Investors consider precious metals like silver and gold as ‘haven’ assets, which can stabilize or even grow your portfolio during economic uncertainty. But ask yourself, “When have we NOT been in times of economic uncertainty?”
That’s why having silver in your portfolio, especially for retirement, makes sound financial sense. While no one can predict the future, an investment in silver offers protection and growth potential.
Learn how to invest in silver to protect your portfolio better.
Silver investing basics
There are two major categories of investment in silver: physical silver and paper silver.
Physical silver includes tangible assets such as silver coins, bars, and rounds. Owning physical silver gives you direct control over your investment.
Paper silver refers to investments like silver futures contracts, ETFs, stocks, and shares in silver mining companies. This type of investing exposes you to the benefits of rising and falling silver prices without physical ownership, but since these are not physical assets, their worth depends on the performance of the issuing companies or financial markets.
Breaking down the different ways to invest in silver
Let’s examine the more specific investing options for buying silver.
Buying physical silver
Physical silver comes in three forms.
Silver coins: Government-backed with legal tender status, silver bullion coins like the American Silver Eagle, Canadian Maple Leaf, and Austrian Philharmonic are popular for their recognized value and iconic designs.
Silver bars: Offered in various weights and finishes, silver bars are cost-effective for investing in larger quantities.
Silver rounds: Affordable and available in unique designs, silver rounds are similar to coins but lack legal tender status, making them an even more budget-friendly entry into silver investing.
The most common forms of owning silver or any precious metal are bars and coins. Consider storage, liquidity, and marketability when decide between coins and bars. Silver coins are more liquid and easier to sell in smaller quantities, while bars are more compact and generally have lower premiums.
When buying physical silver, you should always purchase from reputable dealers who provide authenticated products. Swiss America offers a range of silver products that meet these standards.
Investing in silver ETFs and mutual funds
If you want paper assets, silver ETFs and mutual funds are potential options:
Silver ETFs: These track the price of silver and trade on stock exchanges, offering liquidity and ease of trading without physical ownership. The iShares Silver Trust (SLV) is an example of a silver ETF.
Silver mutual funds: These funds pool investor money to purchase a diversified portfolio of silver-related assets, including mining stocks and physical silver. They offer professional management but may come with higher fees compared to ETFs.
Silver mining stocks
Investing in silver mining stocks involves purchasing shares in companies that extract silver.
Potential rewards: Mining stocks can offer higher returns than physical silver because they better leverage rising silver prices. Successful exploration and production increases can also increase stock prices.
Risks: Mining stocks carry operational risks and can be more volatile than investing in physical silver or ETFs.
You could consider diversifying across multiple companies or using a silver miners’ ETF to reduce some of the risks associated with individual stocks.
To purchase silver stocks or EFTs, you must set up a trading or investment account with a financial institution.
Here’s a quick summary of the various options for buying silver:
Silver Investment Comparison
| Investment method | Description | Benefits | Considerations |
| Buying physical silver | Ownership of tangible silver in the form of coins, bars, or rounds. | • Direct ownership of silver • Tangible asset with intrinsic value • Different forms to suit budgets | • Requires secure storage • Liquidity varies with form (coins more liquid, bars more compact) |
| Silver ETFs | Track the price of silver and trade on stock exchanges, no physical ownership. | • High liquidity • Ease of trading • No need for storage | • No direct ownership of silver • Subject to market fluctuations |
| Silver mutual funds | Pool investor money to buy silver-related assets like mining stocks and physical silver. | • Professional management • Diversified portfolio | • Higher fees than ETFs • Less control over individual assets |
| Silver mining stocks | Invest in companies that extract silver, higher potential rewards with higher risks. | • Potentially higher returns • Leverage on rising silver prices • Option to diversify with ETFs | • Operational risks • High volatility compared to physical silver or ETFs • Requires a trading account |
Get a Silver IRA
For those looking to incorporate silver into their retirement strategy, a Silver IRA offers a tax-advantaged way to hold physical silver within a retirement account. This allows you to benefit from silver’s growth potential and inflation protection while enjoying the security and tax benefits of an IRA.
However, while you own physical metal, the IRS doesn’t allow IRA silver or other precious metals at home. You must store your silver in an approved storage facility.
Buying actual silver for your IRA takes a few more steps but is relatively simple. You can read our article for a detailed account of exactly how to buy silver for your IRA, or you can talk to a precious metals IRA expert at Swiss America today.
How to invest in silver: what you need to know to buy silver
Here’s what you need to consider when getting started investing in silver.
Step 1: Determine your investment goals
Before investing, what are your goals? Are you looking to preserve wealth, grow assets, or protect against inflation?
Physical silver is ideal for wealth preservation since it offers a tangible hedge against economic uncertainty. Evaluating your motives will help you choose the right strategy and stay focused on your financial objectives.
Maybe it’s one of those reasons, or perhaps all of them, but smart silver investors know your “why.”
Step 2: Choose a silver investment
Select the type of silver investment that best aligns with your goals. Consider your risk tolerance, investment timeline, and preference for physical ownership or paper silver. Also note that if you’re buying silver in an IRA, there are IRS rules on which metals qualify.
Step 3: Find a reputable dealer or platform
Now that you have your “why,” it’s time to buy. Here’s how:
Research dealers: Look for dealers with solid reputations and positive customer reviews. Check if they are members of reputable industry organizations like the American Numismatic Association (ANA) or the Professional Numismatists Guild (PNG).
Verify authenticity: Look for dealers who offer products with certificates of authenticity or serial numbers for silver bars to confirm you’re getting genuine silver with verified purity and weight. Reputable dealers often provide documentation from recognized refineries or government mints, such as the U.S. Mint or the Royal Canadian Mint.
Check security measures: When buying silver online, look for companies that use encrypted payment methods and share their return and insurance policies. Be cautious of deals that seem too good to be true, and only buy from reputable dealers to avoid potential fraud.
Step 4: Make your purchase and store your silver safely
Payment methods: Use secure payment methods such as bank transfers or credit cards that protect against fraud and verify that you can trace your purchase.
Documentation: Always keep records of your purchase, including receipts and any certificates of authenticity that verify the silver’s purity and origin. This documentation can help if you have any future resale or insurance claims.
Storage options: Consider using safe storage solutions like a safety deposit box at your bank or a private storage facility offering top security and insurance coverage for physical silver. If you decide to store silver at home, invest in a strong, fireproof safe and buy insurance for the full value of your holdings.
Weighing the pros and cons of silver investing
Investing in silver has advantages and disadvantages. Here’s what to consider:
Pros of investing in silver
Potential for price appreciation: Silver has increased over 3,000% since 1970, and current prices are below their 2011 peak, making it a good time to buy.
Inflation hedge: Silver has historically held its value during inflationary periods, making it a consistent store of value.
Industrial Demand: Silver’s high conductivity, flexibility, and reflectivity make it essential in electronics, solar panels, and photovoltaic cells.
Portfolio diversification: Silver often moves independently of stocks and bonds, helping diversify your portfolio.
Accessibility: Silver costs less than gold per ounce, making it accessible to a broader range of investors.
As one Redditor on r/Silverbugs succinctly stated about why you want to invest in silver: “Easy to afford and undervalued.”
Cons of investing in silver
Market volatility: Silver prices can be more volatile than gold prices, leading to potential short-term losses.
Storage concerns: Physical silver requires secure storage, which can involve additional costs and logistical challenges.
Lower liquidity: Silver is generally less liquid than gold, making it harder to sell quickly at the price you want.
As with any investment, there are upsides and risks. Evaluate your financial situation, talk to precious metals experts, and make the best silver investment for your needs.
The future of silver looks bright
Silver’s future looks promising, with multiple factors pointing toward potential growth in its value.
Price predictions: Analysts expect silver prices to be around $25 per ounce in 2024, with even higher gains predicted in the coming years.
Rising industry demand: Demand for silver in green infrastructure and renewable energy is growing which increases price growth.
Investment appeal: Silver’s affordability and role as a hedge against inflation make it an attractive option for many investors. Concerns about the devaluation of the US dollar further add to its appeal.
We discussed rising silver prices and our predictions on one of our recent podcasts:
Is silver a good investment? Absolutely.
Investing in silver is more than adding another asset to your portfolio. It’s about preparing for whatever the future might throw at you and then profiting from it. Silver offers a mix of stability and growth potential that can help you protect what you have while giving you room to grow.
With the world changing so fast, having something solid like silver in your corner just makes sense. It’s a smart move to consider how this precious metal can fit into your plans and help you build a more secure financial future.
If you’re ready to explore your options, contact Swiss America for personalized guidance and access to a range of silver investment products. Their expertise can help you make informed decisions that suit your financial needs.
How to invest in silver: FAQs
Is silver a good investment?
Silver can diversify your portfolio and protect against inflation. It also has the growth potential, though it is more volatile than gold. Before deciding, evaluate your risk tolerance and investment goals.
How to invest in silver for beginners?
Begin by deciding whether you want physical silver, like coins and bars, or paper assets, like ETFs and mining stocks. Start small, set clear goals, and explore options at Swiss America.
Will silver hit $100 an ounce?
Some analysts believe silver could reach $100 an ounce because of rising industrial demand and economic uncertainty, but it’s dependent on market conditions. Keep an eye on trends and expert forecasts.
Note: The information in this post is for informational purposes only and should not be considered tax or legal advice. Please consult with your own tax professionals before making any decisions or taking action based on this information.
