How to Invest in Silver for Beginners

TL;DR

• There are many reasons to consider investing in silver, particularly if you’re seeking an opportunity that creates enduring value. 
• Diversification is key, as is understanding the different forms of silver available. 
• Getting a team of experts on your side is critical for peace of mind when managing your investments. 

Investing in precious metal has long been a popular way to earn money, and investors’ interest in silver assets – physical and otherwise – is on the rise.

In fact, the silver market has seen an uptick in years past across major markets.

Even if you know very little about the silver industry, or if you’re concerned about market volatility, we can provide guidance that can help set you on the right track – and the process can be much simpler than you may think.

At Gold Stackers, we know a good investment when we see one, and we know what the right investments in silver can do for your portfolio. With decades of experience in precious metals investment and a history of strong past performance, we help sophisticated investors minimise risk and capitalise on silver opportunities.

Why Invest in Silver?

As with any commodity, investing in silver involves a degree of risk; however, silver has been considered a reasonably stable investment throughout history. Records show that silver, as a scarce metal, retains – and even increases – its enduring value and purchasing power over time.

Of course, many investors who purchase silver also weigh up the potential risks and rewards associated with the decision to buy silver or other precious metals.

Silver vs gold

While physical silver is markedly less expensive than gold, it still offers many of the same advantages – it’s a hard asset that won’t depreciate (unlike paper currency), with no counterparty or default risk. It also has many more industrial uses.

Industrial demand for silver has been fairly stable throughout history, and as it’s currently used to manufacture everything from mobile phones to medical equipment, that’s unlikely to change any time soon. These demand factors are major contributors to silver prices, which is good news for silver futures and those already in possession of physical bullion, physical coins or any other asset on the silver markets.

The benefits of diversification with silver

Seasoned silver investors know that diversifying an investment portfolio with silver – whether via traditional investments, mining stocks or futures contracts – can become a boon for investment accounts.

Owning silver as part of a wealth portfolio benefits investors on several fronts, by storing value long-term and offsetting the same risks that arise consistently during periods of economic uncertainty.

Different Forms of Silver Investments

Physical silver

Like physical gold, physical silver is a commodity that retains its value for the long-term. It’s also known to be easy to buy and often increases in value over time, generating a profit at sale – particularly given its status as a relatively indispensable metal for the modern age. 

However, it’s important to note that this does not necessarily translate into an ongoing income. 

If you’re considering buying physical silver, there are several different forms to consider, including silver bars and bullion coins. Silver bars can be either minted for a polished, refined appearance or cast for a more affordable end product. Bullion coins, like minted bars, are shaped by enormous pressure from a coin press.

Paper silver

If physical ownership of silver isn’t a priority, but you’d still like to benefit from market price rises, “paper silver” could be an ideal opportunity to invest in silver. The market for silver ETFs (exchange-traded funds) is so hot, it has been estimated at 250 times the size of the physical silver market, and continued growth is likely as digital currency continues to grow in popularity.

Choosing the Right Type of Silver Investment for You 

When making an initial investment in any commodity, physical or otherwise, there are several considerations to be made.

Basing your decision on the details above regarding the different types of silver, as well as your own independent research, will put you in the best position to make wise investment decisions. 

While the decision to invest in either physical silver or “paper silver” (silver stocks, for example) is important, Gold Stackers CIO Matt Colahan says you should always consider your investment goals, budget and risk tolerance first

“Silver is generally known as a fairly low-risk investment, particularly for those with some budget wiggle room; however, independent research is critical to determine whether the potential payoff will outweigh the risk,” said Matt. 

How to Buy Silver 

After choosing an investment target, the next logical question is how do I invest in Silver? When buying silver, a financially responsible purchase process begins with research into reputable dealers and distributors. There are many suppliers in Australia, most with an online presence including customer reviews – an easy way to weed out less trustworthy options. 

Some of the best silver product offerings on the market include Gold Bullion Australia brand cast bars, minted bars and bullion coins from Perth Mint and ABC Bullion. 

All of these options are included in our extensive range of silver bullion and coins online, which are available to purchase online 24/7. We offer a variety of safe and secure payment options and collaborate with trusted delivery partners for maximum security and discretion. 

We’re also invested in ensuring that you see the full value of your purchase through proper security and storage. After your order has been placed and delivered, we recommend that you consider storing it in a safety deposit box – or, if you plan to keep it in your home, an airtight, low-oxygen environment will help to prevent your silver from tarnishing. 

Selling Your Silver Investment

So you’ve invested time and energy in preserving and maintaining your silver, and now you’re ready to see the returns? First, resist the temptation to turn to pawn shops for instant financial gratification – because timing is everything. 

The best time to sell silver mining stocks, coins, or any other form of the commodity depends on economic factors such as supply, demand and inflation, as well as your own portfolio and risk exposure.

When you’re ready to sell, Gold Stackers will buy your gold and silver back from you for a value determined by the current spot price, less a premium – no matter what brand you originally purchased.

In any case, the key to maximising the value of – and return on – your investment in silver often comes down to an awareness of global economic conditions and access to the right support. 

Benefits of Investing with Gold Stackers 

At Gold Stackers, we are proud to have established a sterling reputation for providing our clients with access to silver in just about any physical form.

As an authorised distributor for Perth Mint and ABC Bullion products, we offer genuine service and easy access to a wide range of investment-grade precious metal at competitive prices.

Common Mistakes to Avoid 

So you’re considering buying in for the first time – but how do you invest in silver in the safest way possible? As a starting point, it pays to be aware of these common pitfalls that could affect your outcomes:

Purchasing before researching

Seeking investment advice is always a wise move, but don’t forget that you can also do your own independent research into silver prices and key terminology, ensuring a more complete understanding of the processes and markets you’re entering into.

Ignoring storage and security considerations

Properly stored assets are safe assets, and owning physical silver requires an investment of time and care.

This is particularly important if you’re buying silver coins or silver bullion – or any precious metal, for that matter – because the responsibility of looking after the physical asset will be yours. For peace of mind, consider investing in a safety deposit box.

Letting emotions drive buying and selling decisions

Often, buyers’ emotions are more volatile than the market itself, and this can lead to errors in judgement. Resist the push or pull of a sudden price movement. 

Overlooking transaction fees and costs

Beyond the price of silver itself, transaction fees and costs can add significantly to any silver purchase, so make sure to go through the fine print. 

Failing to diversify within silver investments

With so many opportunities to buy and trade silver across both physical and digital silver markets, failing to diversify would be a mistake.

Conclusion

The bottom line here is that if you understand the value of silver and how to maximise it along with general investment strategies like portfolio diversification, you can be successful in the silver market.  

At Gold Stackers, our goal is simple – we work to provide easy access to investment grade precious metals with genuine service and competitive prices, and we would love to help you make the most of new investment opportunities. We can simplify the process of investing in silver for beginners, and help you get the most out of the market. 

When you’re ready to start your silver investing journey, call us on 1300 618 363.