For a long time now, precious metals like silver have been a considerable alternative to conventional investment options like stocks and bonds. During any economic downfall or when the government starts printing mint, investors shift to silver as a hedge.
Investors, whether experienced or amateur, have loved silver for quite some time and for good reasons. While some see it as a valuable addition to their store, others consider silver and gold (other precious metals) security against inflation. For this group, silver investment is one way to ensure that they hold on to a currency that economic inflations or continuous near-zero interest rates won’t affect.
Here are the five ways in which you can invest in silver.
Physical ownership of silver bullion or coin gives a mentally and emotionally satisfying feeling. Once you own silver bullion, you can use it however you want. Once the silver prices start to rise, you can earn a profit on your silver bullion or coin. But that’s the end of that story because a physical commodity cannot generate a cash flow like a business.
If you want, you can buy silver coins from local dealers or pawn shops. However, it would be best to look for a renowned dealer like RPS Gold before purchasing physical silver to stay safe.
ETFs – Owning Silver
ETFs (exchange-traded funds) are the best if you don’t want physical silver but are looking for a lower-risk method. You get the profits of owning silver once the prices rise, but your silver won’t be stolen. The ETF, which holds physical silver, will provide the returns of silver prices without the ETF’s expense ratio.
On top of it, you can sell the silver at market prices and gather liquid funds. It means you can sell your funds at the best day price when the stock market is open. The best two ETFs that won physical silver are:
- Aberdeen Standard Physical Silver Share ETF (SIVR)
- iShares Silver Trust (SLV)
Silver Futures offer a simple method to wager to ups and downs of silver prices without the headache of physical silver ownership. Of course, you can take physical delivery of silver if you want, but that’s not what motivates most who speculate the futures market.
Silver futures are a great way to look into the silver market since it offers high leverage in the futures contracts. It means you’ll need less capital to own a comparatively large position in the metal. Of course, once the silver futures move upwards, you will make a lot of cash quite quick, but it can also go the other way round.
Mining Stocks for Silver
One way to make the most of rising silver prices is to own some company stocks that mine silver. It gives you two benefits:
- Once the silver prices rise, the company’s earnings must increase as well.
- Since miners can raise production over time, it will also boost profits.
That proves better than betting on silver price!
ETFs – Owning Silver Mines
ETFs that own silver mining companies are a good investment strategy for those who don’t want to analyze mining companies but still want their benefits. These ETFs will diversify your funds among miners and lower the risk of investing with one or two mining stocks.
ETF database shows these three ETFs as silver miners:
- Global X Silver Miners ETF (SIL)
- ETFMG Prime Junior Silver Miners ETF (SILJ)
- iShares MSCI Global Silver Miners ETF (SLVP)
Investing in silver has its banes and boons. Not all investors like to invest in them, while others pick silver over other commodities in a heartbeat. It all comes down to your preference and research. Investing in silver ETFs and futures can prove better than owning physical silver. On the other hand, physical silver has no counterparty risk. You can check out silver investments with RPS Gold in London.