A Guide to Investing in Silver

How to Invest in Silver

Regardless of whether you want to gain a substantial return from the start or you're making gradual investments to create a safe haven hedge, everyone has plenty to gain when they invest in silver. Not only is silver more affordable than other precious metals—particularly gold and platinum—but according to analysts, stockpiles will reach the equivalent of gold resources in the near future.

Tips for investing in silver

While big investors already know the ropes, those looking to accumulate the precious metal gradually are advised to work with a reputable service at first. That is until they learn the “ins and outs” of the silver market and how to invest in silver. If working with an advisor is not an option, then here is what you need to do when investing on your own:

  • Educate yourself about the spot price of silver. Don't forget that the spot price fluctuates throughout the day

  • Learn how to recognize fake silver

  • Find a reputable broker/dealer who will service you without delays

  • Set up a maximum percentage for the silver holdings

  • Be constantly up to date with the silver price fluctuations

  • Always choose physical silver over paper silver for the best return on investment

How to buy silver

Broadly speaking, there are two methods when you want to invest in silver, namely investing in financial securities or purchasing physical silver. Let's explore the advantages and limitations of these options.

  • BARS

If you are actually interested in investing in silver as a commodity to expand your portfolio, then you should opt for physical silver, particularly bars. Ingots and bars usually trade at a small premium above the value of silver and can be acquired from bullion dealers and major banks.


As far as coins are concerned, take note that some of them have collectible value. Without denying that some coinage contains silver, the metal is not what dictates the silver coin price. If you're looking to invest in silver through buying coins as a safe haven, then you should be looking for bullion silver coins. Similar to bars, bullion coins derive their value from the amount of silver they contain.

  • ETCS

A third noteworthy way to buy silver entails investing in ETCs (exchange-traded commodities), which are essentially products whose performance is dictated by the price of the silver. ETCs come in two different forms, meaning commodities that are physically backed by holding silver and synthetic commodities. The latter is linked to swap arrangements that replicate the return of the market. Needless to point out that if you have to opt for ETC, you shouldn't take any chances and select the physical silver ETCs when you invest in silver.


Purchasing shares in companies that mine silver is another way to buy silver. Although it sounds like a strong option, experts warn about numerous risks associated with silver stocks. To be more precise, most silver is mined in countries with geopolitical turmoil. A safer option to invest in silver stocks is via a silver streaming company, corporations that buy the production of different mines for a fixed price and for an extended period of time.


Bullion Exchanges can help you

If you want to expand your portfolio by trading assets for silver, then Bullion Exchanges is a reputable and accredited dealer. Contact us today and discover the benefits you can enjoy by working with us when you invest in silver!