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How to Invest in Silver – 5 Best Ways to Buy for Beginners

Donny Gamble
May 10, 2022

Are you excited to learn how to invest in silver? In this article, you’ll discover five reputable ways to add silver to your investment portfolio.

investing in silver
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When it comes to precious metals, many people overlook silver in favor of gold.  However, silver can help beginners begin their investment journey. It is more affordable than gold. 

Silver also provides investors with many of the same positive attributes as gold.  Unfortunately, many potential silver investors feel confused about which methods work best for this type of investing. 

If you feel unsure about investing in silver, we will discuss the five best ways to buy this valuable metal.

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Silver Coins

One of the most popular ways to invest in silver is through coins. The method can work well for beginners because it is easy to get started. 

You can find silver coins at many different dealers and online retailers. The price of silver coins will vary depending on the coin type, its condition, and how old it is. 

Another advantage of investing in silver coins is that you can store them easily. You might keep them in a safety deposit box or at home.

If you worry about theft, you can also purchase insurance for your collection.  Here's what to look for when buying silver coins.

Coin type: There are many different types of silver coins available, including American Eagle coins, Morgan dollars, and Peace dollars. Do some research to decide which type of coin is right for you.

The condition of the coin: You will want to purchase coins in good condition. Check for things like scratches, dents, or other damage.

The price: Of course, you will want to consider how much the coin costs. Keep in mind that the price of silver is constantly changing. Remain prepared to pay more or less than the current market value.

Silver Bullion Bars

Silver bars come in many sizes, from one ounce to 100 ounces. The price of silver bars will vary depending on the size and purity of the bar. 

Bars are a good choice for investors who want to purchase large quantities of silver at once. They are also easy to store and transport.  When buying silver bars, be sure to look for the following.

The size of the bar: Silver bars come in several sizes. Choose a size that fits your budget and your needs.

The purity of the bar: Fineness measures the purity of silver bars. The higher the number, the purer the silver. 

The price: As with silver coins, the price of bars will fluctuate with the market. 

Silver in Your IRA

Investing in silver through your Individual Retirement Account (IRA) is a great way to diversify your portfolio. When you invest in silver through an IRA, you can choose from a variety of options, including coins, bars, and ETFs. 

You will need to open a self-directed IRA to invest in silver. Using this type of IRA gives you more control over your investments. Once you have opened a self-directed IRA, you will choose a custodian. 

The custodian will hold and manage your account. When selecting a custodian, look for a reputable option who can prove experience with precious metals.

Silver Mining Stocks

Investing in silver through mining stocks works well for investors looking for growth potential. When you invest in silver mining stocks, you’re buying shares of a company that mines silver. 

The price of these stocks will fluctuate with the price of silver. However, they also offer the potential for growth if the company does well. 

Here are a few of the best silver mining stocks to consider investing in.

Hecla Mining (NYSE: HL): Hecla Mining is one of the oldest silver mines in North America, and it also happens to be one of the largest. Based in Coeur d'Alene, Idaho, the company has a market capitalization of over $2.9 billion. 

Hecla's share price has been volatile in recent years, but it does offer investors exposure to the silver market. The company embraces responsible mining practices. 

Pan American Silver (NASDAQ: PAAS): Pan American Silver is a Canadian mining company with operations in Mexico, Peru, Bolivia, and Argentina. It is the second-largest primary silver producer in the world. 

The company mines silver for investors, solar power, electronic devices, electric vehicles, and 5G networks. 

Coeur Mining (NYSE: CDE): Coeur Mining is a silver mining company that operates in the United States, Mexico, and Bolivia. The company has a market cap of close to $1.5 billion. It also produces gold, zinc, and lead.

First Majestic Silver (NYSE: AG): If you're looking for exposure to the silver market, then you might want to consider investing in First Majestic Silver. The company is one of the largest primary silver producers in the world and has a strong portfolio of assets.

When choosing silver mining stocks, research each company and its financials. You will also want to consider the management team and their experience in the industry.

ETF's That Own Silver and Miners

Exchange-traded funds (ETFs) offer investors a convenient way to invest in silver.  There are a variety of ETFs that own silver, including the iShares Silver Trust (NYSE: SLV) and the Sprott Physical Silver Trust (NYSE: PSLV).

These ETFs offer investors exposure to the silver market without having to worry about storage or transportation. Investors can also choose from a variety of ETFs that own silver miners.

These include the Global X Silver Miners ETF (NYSE: SIL) and the iShares MSCI Global Silver Miners ETF (NYSE: SLVP). 

When choosing an ETF, take time to research the fund’s holdings, fees, and expense ratio. You will also want to consider the ETF’s performance over time.

Should You Invest in Silver?

Now that you know how to invest in silver, it's up to you to decide if it's the right investment for you.  If you are looking for a precious metal with a long history, then silver may become one of your favorite investment choices.

Silver is a good choice for investors looking for growth potential or those who want to hedge against inflation.  When investing in silver, do your research and choose a reputable dealer

Overall, strongly consider taking the next step by adding silver to your investment portfolio.

Silver Bullion FAQ's

You may still have a few questions about how to invest in silver. Let's answer four commonly asked questions about the topic.

Is silver bullion a good investment?

Yes, physical bullion is a good investment. It is a precious metal used as currency and jewelry for centuries. Silver is also an industrial metal, which means it offers a variety of uses in different industries.

It makes silver a good choice for investors looking for diversification.

Who should invest in silver?

Anyone can invest in silver. However, it's a good choice for investors looking for growth potential or those who want to hedge against inflation.

Is silver a better short or long-term investment?

It depends on your investment goals. If you are looking to hold onto your investment for a long period, then silver may be a good choice.

However, if you are looking for a short-term investment, silver may not be the best option. 

Do you have to pay taxes when you sell your silver?

Generally, yes, you will have to pay taxes on any gains from selling your silver. However, speak with a tax professional to determine how much you will owe in taxes.

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About the author 

Donny Gamble

I’m Donny. I’m a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.

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