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Investing in Silver: How To Buy Silver As A Secure Investment


In addition to its dual role as a currency and industrial metal, silver provides investors with a unique investment opportunity. 

Silver likely will benefit from the rise in commodity prices across the board. Many of the factors which favor gray metal are combined, including a decrease in supply and strong demand. 

Here you will find information on how to select and buy the right kind of silver for investment, how this compares with other ways of investing in silver, and how to make sure you only deal with respectable silver dealers.

 Additionally to explaining how, why and where, we consider the pros and cons of investing in silver, including the risks involved.

But did you know you have even more options? In this article, I’ll show you how to invest in silver so you can decide whether it’s a good option for your portfolio.


Why should you invest in silver?

While many investors tend to gravitate toward precious metals due to their higher prices, silver can prove to be a very lucrative investment. Silver has a higher volatility than gold. 

The price of this precious metal may not be greater than that of gold, but it has a better chance of appreciating than gold. Volatility of silver makes it an excellent investment, since it offers higher gains potential. 

The smaller market for silver makes it an ideal choice for safer investments, without losing its liquidity, because more investors are looking for gold. The industrial uses of silver have kept silver a popular investment for many years.

 In addition to electronics and solar panels, silver is used to make earrings and solar panels. You can find small amounts of silver even in your cell phone. 

Since silver is so versatile, it is always in demand, Metals have so many uses that they will never lose value by investing in them.


Ways of Investing in Silver

Just as there are three ways to invest in gold, there are also three ways to invest in silver.

1-      Gold bars and coins are both physical forms of gold.

2-      Exchange-traded funds (ETFs) that hold silver as a paper asset

3-      Holding shares of companies engaged in silver mining and exploration

Each type of investment comes with its own specific risks and benefits. Investing strategies that are familiar to investors can be used. 

Bullion is another investment option for investors who want to safeguard their investments in the event that fiat currencies decline. And some investors simply want to diversify their portfolios.

Silver bullion is the real thing: physical bullion that can be used for retirement accounts or used to invest in stocks, Diversifying your assets by investing in a variety of different assets - or keeping a stack of metal in a safe at home - is a way to maintain wealth.

Discover more advantages physical silver has over other investments – with Goldco’s free Precious Metals Investor Guide

Click here to claim your free copy

 Investing in Silver The Pros

The decision to invest in a particular asset is not arbitrary-it's a natural thing for investors to make. It's easy to wonder whether silver is worth putting your hard-earned money into since it's not as prestigious as gold and has a small market. 

In reality, many businesspeople view silver as a good investment. Although it has a small market, there are compelling reasons to invest in it. Here are some of them.

1-      Because of the high demand for assets, it is easy to sell them.

In addition to solar panels, batteries, coins, and machines, silver is now found in almost all products. The reflectivity, electrical conductivity, and other properties of this precious metal make it suitable for a variety of applications.

 Silver has been utilized by many industries, making it high in demand. Such a demand for silver is only expected to continue in the future.

2-      Invest in silver for hedge investing and portfolio diversification

Similar to gold, silver tends to rise when paper markets decline. Silver has a number of industrial uses, so it is not always the case.

 Silver is accepted as a security for the sake of protecting investors from market volatility. Silver is insurance against falling stock prices, so they buy it if they think stocks are about to rise. Silver and gold are safe-haven investments if a crash is approaching, so people buy them.

3-      You Can Profit More During An Economic Collapse

Silver prices are highly volatile. Historically, in comparison with gold, they have been more volatile. When there is an economic collapse, gold's value increases, but silver's value increases even more. When the 1970s financial crisis hit, the price of gold soared by 2500%, while the price of silver rose by 3800%.


Investing In Silver The Cons

Of course, silver offers more than just rewards; the metal isn't without its risks, either.

1-      Prices fluctuate unexpectedly

Due to silver's multiple uses, its price oscillates between industrial and investment valuations, causing its price to fluctuate drastically.

2-      There is limited potential for income/appreciation.

Silver is not a bond or a stock, since it is a tangible commodity. Your only chance to benefit is if you sell it during a price rise.

3-      Silver Comes With Storage and Insurance Costs

Again, this is true - silver should be stored safely and insured against theft since it is a real asset and a valuable commodity. 

However, because of the competitive nature of professional vaulting services, Vault and insurance fees are comparable to annual fees on managed broker accounts or trading platforms. Security-wise, this system is an excellent value.


4-      Vulnerable to technology shifts

Whenever silver is used for manufacturing, another metal could replace it. Or the industry could experience a decline - witness the collapse of the film industry, which is a big user of this metal.

For more advantages investing in silver can bring to your portfolio – read Goldco’s free Precious Metals Investor Guide


Where to Start Investing in Silver

Most of us begin our search for silver bullion online before making a purchase. Investing in silver has been made easier by the internet, Finding the right information for investment decisions and finding reputable silver bullion dealers will be easier. 

A silver dealer isn't the only thing you should look for - we recommend you also find free Silver Investment Guides that offer you a better understanding of investing and what to look for in a bullion dealer.

The industry directory currently includes over 1000 bullion dealers, along with hundreds of smaller firms not included. You're never going to be short of choices today, and dealers realize this and are pulling out all the stops to compete with the best in the business.

 Making your first small test purchase is easy because most dealers have excellent websites and offer free shipping. 

If you are nervous and would like to test the waters with a new dealer, you could start out with silver bars and coins.

It is important to begin your investment journey in precious metals with the right mindset as they are long-term investments, but they are costly. 

Making sure you are both compatible is crucial whether you are purchasing silver through a retail store, an investment company, or an IRA consultant.


Learn how to find the best bullion dealer most suited to your needs – read Goldco’s free PreciousMetals Investor Guide

Silver Investment Companies

There are three main ways to invest in physical silver bullion: local coin shops, online e-commerce stores with self-service checkout - or working with professional precious metals investment companies like Augusta Precious Metals

A silver investment firm can provide financial and investment advice, including portfolio management. Specialists in Precious Metals IRAs and offshore vaulting can benefit from this specific advice.

 Minimum investments generally range from $25k to $30k with professional investment companies. 

The reason behind this is that there are only small premiums in silver bullion, with companies only making a profit of 1% on any deal, even when they hold your hand and take care of all aspects of the investment process. 

Because of their huge economy of scale, these companies are often able to offer excellent value for new and seasoned investors. Their vaulting fees and special wholesale prices are often reduced.

These companies hire professionals who are experts in silver investment markets and who can advise clients about both current and future market conditions. 

They help you select items that match your tolerance for risk just as much as helping you transfer your 401k to a silver IRA in response to pending changes in legislation. 

Silver Investment Companies are fewer on the ground than small-scale metal dealers but tend to be more concentrated around precious metals trading or vaulting centers.

When buying a metal valued at over $25,000, we recommend their expert guidance over any other method, particularly for those who are new to precious metal investing.

Want more? Get our free Metals Investment Guide – a unique physical investor kit delivered direct to your door.