How To Invest In Silver

The 47th periodic element, silver has been used as a currency and store of value for thousands of years. As a scarce resource, silver makes for an attractive asset in which to preserve one’s wealth. Historically, silver also served as a key component of coins used as currency. Before looking for how to invest in copper, it’s wise to first understand the dynamics that drive its market. 

Factors Affecting The Silver Market

When studying any commodities market, the demand and supply dynamics are crucial to understanding what drives the price of the commodity. The silver market consists of both long-term investors, speculators and manufacturers who purchase the commodity to make physical goods. 
Silver supply can be down to three key factors. Firstly, the reserves of silver refer to the supply that has either been extracted from the earth or can be extracted at a profit. Meanwhile, resources refer to the remainder of the world’s silver that we know exists but can’t mine at a profit using existing technology. Finally, the production of silver is the amount that is extracted and processed each year. In addition to its manufacturing demand, silver also serves as an inflation-resistant store of value.

Macroeconomic factors such as rising interest rates and the strength of the US dollar have also impacted silver, causing it to drop throughout 2022. 

4 Silver Investments To Consider (Silver Stocks, Silver ETFs & Silver Futures)

Buying physical silver is one way to invest in silver. Physical silver can come in the form of jewelry or silver bars. The cost of storing and securing physical silver means that there are likely better methods to invest in silver. 

Thankfully, there are various ways to invest in silver that don’t involve buying the physical commodity. Silver ETFs, silver stocks, and silver futures give investors and traders exposure to the price of silver.

These investments can either be traded directly or through a synthetic product that tracks the price of the silver futures, known as a CFD (Contract For Difference.) CFDs should be treated with caution since they carry more risk than buying the underlying asset.

Here are four silver investments to consider for your portfolio:

  1. First Majestic Silver Corp. (AG): First Majestic Silver is a mining company that primarily produces silver, but also produces other metals such as gold, lead, and zinc. 
  2. Pan American Silver Corp. (PAAS): Pan American Silver is a mining company that produces silver and other metals such as gold, zinc, lead, and copper. Silver accounts for a significant portion of its revenue and production.
  3. Global X Silver Miners ETF (SIL): This ETF tracks the Solactive Global Silver Miners Index and holds a basket of silver mining stocks from around the world.
  4. iShares Silver Trust (SLV): This exchange-traded fund (ETF) holds physical silver bullion, allowing investors to gain exposure to the price of silver without having to own and store physical silver themselves. 

Where Is The Best Commodities Trading Platform To Buy Silver?

Key Silver Statistics

  1. Silver’s atomic weight is 107.8682.
  2. Silver’s melting point is 961.8 °C (1763.2 °F).
  3. Silver’s boiling point is 2162 °C (3924 °F).
  4. The estimated global resources of silver are around 570,000 metric tons.
  5. The estimated global reserves of silver are around 560,000 metric tons.
  6. China leads the world’s silver producers. 
  7. The global silver market is relatively small compared to other metals, with an estimated annual production of about 27,000 metric tons.

Is Now A Good Time To Invest In Silver?

After a difficult 2022, markets across the world are recovering slightly, showing some cautious optimism on the part of investors. Whether or not it is a good time to invest in silver, or any other asset, depends on various factors that may be unique to your personal situation and investment goals. It’s important to conduct thorough research and seek professional advice before making any investment decisions.

Don’t Stop Here

More To Explore