Investing in Silver for Beginners

Learn How Silver Can Help Your Portfolio

Share Tweet Share

As inflation hits its highest levels in 40 years, many people are looking to protect their wealth. While one of the first places people look for inflation protection is gold, there is another potential alternative – silver. In many ways, silver can be a better inflation hedge than gold for new investors. Silver’s performance has always been greater than gold. At Allegiance Gold, we can educate you on how silver will perform for you in a financial portfolio. After reading this article, call an executive at Allegiance Gold at 844-790-9191 to not only learn about silver, but receive a FREE Gold IRA Guide as well. Here’s how you can get started investing in silver. 

Why invest in Silver?

There are a number of compelling reasons why you will want to consider an investment in silver. Here are the top three reasons to consider silver for your portfolio:

1). A low-cost hedge on inflation

Silver is an affordable way to hedge against inflation. As an example, if you have a $10,000 portfolio, then using a 10% hedge will cost about $1,000. This can barely buy you half an ounce in gold. However, $1,000 can purchase over 40 ounces of silver. 

2). Industrial demand

Silver is in a unique position where it is more than just an inflation hedge, it also has many industrial uses. Today, silver is used for the creation of membrane switches, in conductive adhesives, in electrically heated automobile windshields, and in the preparation of thick-film pastes. That means that the silver supply can experience possible shortages that can boost its value. 

3). Offers opportunity for private ownership

Finally, you can purchase silver coins and hold them privately. This can be a big advantage to investors in certain situations. 

How to Buy Silver for Beginners

There are several ways that you can buy silver. In the following section, we will concentrate on how beginners can purchase physical silver. 

1). Buy Silver Bullion

First, you can purchase silver coins or bars. This is known as bullion. You can purchase silver bullion through an online dealer or through a physical gold and silver dealer. Additionally, there are many pawn shops that will have silver available for sale. Finally, you may be able to purchase silver from a private seller.

If you are starting out, it is recommended that you purchase physical silver from a reputable dealer, like Allegiance Gold, to reduce the chance of fraud. 

2). Buy Junk Silver

Looking for the most affordable way to purchase silver? Then you will want to purchase what is known as junk silver. Junk silver refers to common circulation coins that had real silver content in them. In the United States, the mint created dimes, quarters, half-dollars, and silver dollars with silver content up until 1965. Precious metal dealers sell junk silver at a lower price over spot than other silver coins. Therefore, junk silver is a great first investment for new silver investors. 

Other Ways to Invest in Silver

In addition to owning physical silver, there are other ways that you can invest in silver. Best of all, these silver investments can be completed in seconds.: 

1). Silver ETFs

First, you can purchase shares in silver exchange-traded funds or ETFs. These ETFs track the price of silver either through the ownership of silver futures contracts or physical silver. The main advantage of silver ETFs is that you can purchase them as easily as you purchase a stock. The main disadvantage is that you don’t physically own the silver. Here are the top silver ETFs available.

• SPDR Silver ETF (SLV)  – Tracks the futures price of silver 
• iShares Silver Trust (IAU) – Tracks the futures price of silver 
• Aberdeen Standard Physical Silver Shares ETF (SIVR) – Holds physical silver

2). Silver Mining Stocks 

Additionally, you can purchase shares in silver mining stocks. The main advantage of silver mining stocks is that it is effectively a leveraged play on silver. The downside to investing in silver mining stocks is that their price action is more volatile than silver. Here is a look at some of the top silver mining stocks:

• First Majestic Silver (AG) 
• Pan America Silver (PAAS)

• Fortuna Silver Mines (FSM)

Getting Started With Silver Investing 

Silver can be a great way for new investors to hedge their portfolios with a potentially valuable inflation hedge. Consider the various silver investing options available to you. The best way you can learn more about silver is by calling 844-790-9191 and speaking to an Allegiance Gold executive. Our team takes the time to further educate themselves in order to see what performs best when contributed towards an investment or different financial portfolio. Make sure to ask about our FREE Gold IRA Guide, or simply fill out the form below!