We look at the pros and cons of using silver for investment purposes, including the risks involved.
Of all the physical precious metals, investing in silver offers beginners by far the easiest access point to the market.
Investing in silver is popular due to its lower price than gold. With the same investment, you can get 85 ounces of silver, offering a tangible and enjoyable investment option.
Silver bars are sturdy and maintain value, making them a practical choice for investors starting with small amounts of $200-$500.
Much like investing in gold, there are three principal ways of investing in silver: 1. buying the physical metal either as bullion bars or coins
2. buying a paper derivative of silver such as an Exchange Traded Fund (ETF) 3. buying shares in silver mining and exploration companies
Investing in silver primarily involves buying physical bullion bars or coins, which is the most direct method. Silver has a lower unit cost than gold, making it more accessible for investors.
Silver ETFs are paper proxies supported by physical metal, but a risk of default arises if demand exceeds actual silver holdings.
Silver mining shares offer profit potential with new finds but high risks. If mining costs exceed market prices, companies may go bankrupt, rendering shares worthless despite silver reserves.