Precious Metals Guides

Start here if you're just getting started with investing in precious metals.

Silver Investing Guides

Go even deeper with silver and precious metals investing guides. More added soon!

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You may have heard that investing in silver is a good investment. But do you know why? In this guide, we’re going to cover the basics of why you should consider investing in silver.

From a top level, here are some of the fundamental reasons silver is a good investment:

First, silver is rare and becoming even more so. Second, it has many industrial uses. Third, it is traditionally a good store of value and a good hedge against inflation, but is it right for your investment strategy? 

Let’s dig deeper!

Silver Investing Basics

There are quite a few ways you can invest in silver:

  • Buy physical silver and hold it in a silver IRA or 401(k) for retirement
  • Buy stocks from silver companies (mining companies, etc.)
  • Buy silver directly from a commodity exchanges
  • Buy silver from precious metals ETFs (there are even silver-only ETFs)
  • Buy physical silver in the form of coins and bullion and store it
  • Invest in mutual funds that have exposure to silver markets

How you choose to invest in silver depends on your investing strategy and financial goals. 

We’ll cover a few of the top ways in this article, starting with investing in silver coins.

Silver Coin Investing 

Silver coins are popular among collectors and investors for their physical silver content and unique designs.

Investment-grade silver is typically 99.9% pure. These silver coins are produced by different countries including but not limited to the United States, Mexico, Canada, and China.

Some of the most popular silver coins include the American Eagle, Canadian Maple Leaf, and Chinese Panda. Silver stocks, on the other hand, refer to the ownership of silver bullion or shares of companies that mine and produce silver bullion.

silver coins

Most silver coins are minted by government mints, such as the United States Mint, and are considered legal tender in their respective countries.

Silver coins can be used to purchase goods and services, or they can be stored away as an investment. The value of silver coins is based on the spot price of silver, plus a premium for the coin's rarity, condition, and desirability.

They derive their value from the physical properties of silver itself rather than from any face value stamped on the coin. 

However, unlike paper money, silver coins always have some intrinsic value because they are physical commodities with numerous industrial uses. For this reason, silver coin investing can be an effective hedge against inflation and a great addition to your investment portfolio.

Many investors choose to buy silver coins and bars as a way to diversify their portfolios and protect their wealth.

Silver Bullion Investing

Bullion” means “gold or silver in bulk before coining, or valued by weight.” Typically silver bullion refers to bars.

silver bullion

Silver bullion prices depend on a number of factors, including the current market price of silver, the purity of the silver, and the weight of the silver. Because silver bullion is so valuable, it is often stored in safes or vaults and only sold by reputable dealers. Be wary of silver dealers and watch out for common scams.

The advantage of investing in silver bullion vs silver coins is that you’re paying a closer price to the spot price, and not paying a premium for the brand-appeal of investor coins.

Silver Retirement Accounts (Silver IRAs and 401ks)

Silver IRAs let you hold physical silver in a tax-advantaged individual retirement account (IRA). Also called precious metals IRAs or gold IRAs, these accounts come with all the advantages of standard IRAs and other retirement accounts and are typically a “self-directed individual retirement account.” These SDIRAs allow you to invest in alternative assets like commodities, cryptocurrency, real estate, art, and more. 

Precious Metals ETFs

With a precious metals ETF, or exchange traded fund, you can gain exposure to a wide variety of silver stocks. ETFs invest in an entire index of companies and stocks in a sector. For example, instead of picking and choosing between silver company stocks, you could invest in the iShares Silver Trust (a silver-only ETF), and spread your investment out across multiple silver stock companies 

Silver Stocks, Mutual Funds, Etc.

When buying silver stocks, you’re purchasing shares in silver companies from a brokerage or exchange. Silver companies can be mining companies, jewelry companies, or industrial companies that are refining the raw silver ore and turning into industrial grade metals and products for the high-tech sector or other industries. 

Another option if you’re interested in stocks but want to mitigate risk is to find a mutual fund that has exposure to precious metals. Mutual funds let you invest in “baskets” of stocks that can give you exposure to a wide range of companies and the stock market in general, helping reduce overall risk.

How Does Silver Price Affect The Stock Market?

The price of pure silver and precious metals in general has a direct effect on the stock market. The reason for this is simple: when the price of silver goes up, people want to buy more silver. This increased demand results in an increase in the price of silver stocks, and by extension, the entire precious metals sector.

stock market affect on silver prices

The same is true when the price of silver goes down. When the price of pure silver decreases, people want to buy less silver. This decreased demand results in a decrease in the price of silver stocks, driving over all prices down.

While the price of silver itself probably has a negligible effect on the overall stock market, it can have a strong effect on the precious metals sector, which has a strong effect on other markets.  

Live Silver Prices

Here's a chart of the current live silver spot price: 

Is Investing In Silver A Good Idea?

Investing in silver can be a good idea depending on your investment strategy and overall goals.

silver investment

Silver is a precious metal with a long history of value, making it a wise investment for those looking to protect their wealth. Additionally, silver is used in a variety of industries, from jewelry to electronics, which means that there is strong demand for the metal.  

Here’s a few points to consider if you’re thinking about investing in silver:

  • Silver markets are highly liquid, making silver and precious metals in general a relatively safe place to put your money if you’re worried about being able to cash out.
  • While silver prices have been volatile in recent years, there are reasons to believe that the metal could be poised for a comeback in the coming year. One of the key factors driving silver prices is industrial demand.
  • Another factor to consider is jewelry demand. While gold has traditionally been seen as a more coveted metal for jewelry, silver is becoming increasingly popular due to its lower price point. With more people looking to invest in precious metals, it's likely that silver will see increased demand in 2024.
  • Precious metals have always been seen as a stable investment, and silver is no different. It is both a precious metal and a valuable commodity, which means that it has a lot of potential for growth in the coming years.

Conclusion - Should You Invest in Silver?

investing in silver

Silver, like other precious metals, has a history of being a good long term investment. Whether you’re buying stocks, ETFs, or physical silver, having some exposure can be a great hedge against economic uncertainty and a smart choice for your portfolio. 

But should you invest in silver and precious metals? That really comes down to your own individual investing goals and strategy. 

Next up, read our guide on How To Buy Silver Bars.

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