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How to Invest in Silver

If you are looking to diversify your portfolio, then you will want to consider precious metals. While gold may be the first precious metal that comes to mind, you don’t want to ignore the potentially more rewarding returns that silver offers. While silver can be more volatile than gold, it can offer outsized returns. Although gold had a record-setting year in 2020, silver’s performance outweighed gold tremendously. The executives at Allegiance Gold can show and educate you on why silver is a great addition to any financial portfolio. Here’s a look at five different ways that you can invest in silver today.

5 Ways To Invest In Silver

There are many different ways that you can invest in silver. For the regular investor, there are five major ways that you can add silver to your portfolio:

1). Silver Exchange-Traded Funds (ETFs)

Silver exchange-traded funds or ETFs are one of the most common ways to invest in silver. Silver ETFs are funds that track the price of silver futures contracts. These ETFs are backed up by either silver derivative contracts or physical silver. Here’s a look at some of the top silver ETFs available:

-iShared Silver Trust (SLV)

-Aberdeen Physical Silver Shares ETF (SIVR)

-Invesco DB Silver Fund (DBS)

Who should own this?

If you are looking to speculate on the short or intermediate time frames on the price of silver, then silver ETFs are a great idea. However, if you are looking for a long-term investment in silver, then you may be better off with holding physical silver.  Allegiance Gold can help you invest in silver today!

 2). Silver Mining Stocks

Silver mining stocks are a great opportunity if you are willing to take on more risk. During bull markets in silver, the silver mining stocks will go up faster than the precious metals. However, silver mining stocks will sink faster in bear markets as well. Therefore, you need to do your research to make sure that you are dealing with a reputable silver miner that delivers on its forecast. Within the world of silver miners, there are regular silver mining stocks and junior silver mining stocks. Junior silver mining stocks refer to companies that are not yet mining silver out of the ground but own rights to a silver mine or a series of silver mines.

Who should own this?

If you know how to analyze companies and read annual reports, then silver mining stocks may be right for you. Also, you must be willing to take on more risk when you own these types of stocks.

3). Silver Derivatives

Silver derivatives are silver options and futures contracts that allow you to speculate on the price of silver using leverage. Silver derivatives also allow you to speculate on the fall of silver prices as well as the rise in prices. With silver derivatives, you will have to put up a margin that can be completely wiped out with a small move against your position. Finally, silver derivatives are time-sensitive. Therefore, speculation in silver derivatives should be reserved for experienced traders only.

Who should own this?

Only seasoned investors who understand the derivatives market should consider using silver derivatives. If you plan to invest in silver for the long term, then you should steer far away from silver derivatives.

 4). Silver Coins & Silver Bullion

Silver coins and silver bullion is perhaps the more pure way to own silver for the long term. You can purchase silver coins and bullion in 1 ounce, 10 ounces, 100 ounces, and 1000 ounce sizes. Silver coins and silver bullion can be purchased at various gold and silver dealers.  The best place where you can buy silver coins or bullion like the most exclusive coin on the market, The Standing Lion Silver Coin, is at Allegiance Gold.

Who should own this?

Those who want to own silver over the long term should purchase silver coins and silver bullion and take them into their physical possession. By holding onto your silver, you have no third-party risk and you can easily and privately sell your precious metal.

5). Junk Silver

Junk silver refers to minted coins that have silver content in them. In the United States, dimes, quarters, half-dollars, and dollar coins contained 90% silver up until 1964. Today, these coins are available as “junk silver” and come in bags with a face value of anywhere from $10 to over $1,000. The main appeal of junk silver is that they are offered at a lower price over spot versus non-junk silver coins.

Who should own this?

If you are looking to get the best price for your silver, then you should consider junk silver coins. Junk silver is a great “first investment” in silver and can allow you to accumulate silver at a great price.

Getting Started With Silver Investing

Your best first investment in silver will be junk silver, silver coins, and silver bullion. As you gain more experience, you will soon realize that coins and bullion are the best for investing and holding onto for future profit potential. Consider speaking to an executive today at Allegiance Gold. Our executives study the market and how the market affects precious metals on a daily basis. They will also be able to give you a FREE gold IRA guide on how you can convert your IRA into a gold IRA and have the maximum potential for profit.  Contact us today for more information!

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