Silver is one of the most popular of precious metals that has been mined since man first walked the Earth. Prized by humans since the dawn of time, it is one of the first metals to be mined and worked. Silver has been used for everything from jewellery to coins to tableware. Its popularity is due to its many desirable properties.
For many investors, silver is preferable to gold as a form of investment. Silver is abundant but still rare enough to be valuable, it is malleable and easy to work, and it has a beautiful lustrous sheen. In addition, silver is a highly effective conductor of electricity and heat, making it an essential component of modern electronic devices. For all these reasons, silver will continue to be one of the most popular precious metals for years to come.
Of course, you do need to have a lot of background knowledge of silver markets and with that in mind, here are a few ways that you can invest in silver.
Owning Physical Silver
The most common way for a private investor to get into silver is to acquire the precious metal in bullion form. Among the best ways to get silver is to go an established dealer, often a dealer of gold. When investors buy gold Adelaide dealer City Gold Bullion or any other dealer is offering, they also would inquire about silver. These dealers can deliver the silver to your door and you can’t get any better than that.
By using an established bullion dealer, you can be sure that the silver is pure and certified. Once you have possession of the silver, keep your eye on the spot price and should the price rise, you can sell and take your profit. It is unusual for an investor to choose silver when looking for a short-term investment, as there are better commodities that offer more potential.
Silver Futures
As with most commodities, you can trade in futures with silver and there can be a lot of leverage within the futures markets, which makes it more attractive than physically holding the precious metal. Of course, the name of the game is to accurately predict whether the price of silver will go up or down and it is usually experienced futures traders that move in this market. You can lose a lot of money very quickly if you get things wrong and if you have no experience in this market, we don’t recommend trading silver futures.
Exchange Traded Fund (EFT)
You can trade in EFTs that own silver, which for most traders is a better position than futures, and should the price of silver go up, you receive a dividend. For silver traders that do not want to take physical possession of the commodity, EFTs are the preferred option.
Owning Shares Of A Silver Mine
This is yet another way to invest in silver and there are two main ways to make a profit; firstly, if the price of silver goes up, the mining company should make a profit and you would receive dividends as a shareholder; the second way to make money is when the mining company increases production, which would also bring you a return.
Major Silver Mining Countries
The list of countries where silver is mined include the following:
- United States
- Australia
- Bolivia
- Columbia
- Peru
- Chile
- Mexico
- Russia
The silver market is largely defined by the supply-demand ratio, and technological developments have led to alternative metals to be used in some industrial applications.
If you are interested in making an investment in silver, the best place to go is a gold and silver bullion dealer, where you can acquire physical silver in bullion form and store it in a secure facility.