How to invest in silver

We share the 4 ways that you can invest in silver, including some silver mining companies to explore.

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Learn about how to invest How to invest in silver

Silver has been a valuable commodity for hundreds of years — its purposes have changed a fair amount throughout history, but it’s never lost its place in the market. In part, this is due to its inherent malleability, allowing it to adapt to the changing times and keep its value high even today. We’ve put together four different ways to invest in silver, and the risks involved.

How to invest in silver from the UK

  1. Choose how you want to invest in silver. You have a number of options when it comes to investing in silver, such as buying physical silver, buying silver ETFs or investing in silver-related stocks, and each has its advantages and disadvantages. We’ve added more detail about this in the corresponding sections below.
  2. Pick a trading platform or broker. Once you’ve decided on the type of silver investment you want to make, you’ll need to find a platform that lets you invest in it from the UK – we’ve compared brokers below, but be aware that some investment types aren’t available for all brokers. We’ll explain this for each investment type below.
  3. Create an account. You’ll need to sign up for your chosen trading account, and may need to provide ID as part of the signup process. Read our guide on how to open a share trading account to learn more.
  4. Fund your account. You’ll need to add money to your trading account to begin investing. Most trading apps and platforms accept bank transfers and credit card payments.
  5. Make your investment. Search for the type of investment you’ve decided to go with, review the details and submit a buy order.

1. Invest in silver company shares

Investing in silver stocks is a well-known method for approaching the market. It’s possible to invest directly in the companies that mine for silver. Because these shares are so close to the commodity, the shares in them are likely to correlate a fair amount with the price of silver.

Silver has a number of uses which make it a desirable asset in many modern industries. Its popularity makes it an easy commodity to invest in, with many companies offering their stock and a number of brokers and advisors willing to sell them.

Here are some mining companies you can invest in:

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Fortuna Silver Mines

Fortuna Silver Mines is a Canadian metals mining company. It has 4 operating mines:

  • San Jose. An underground silver gold mine in southern Mexico.
  • Caylloma An underground silver, lead and zinc mine located in southern Peru.
  • Lindero A gold and copper mine, located in the Argentinian puna.
  • Yaramoko. Two underground gold mines: the 55 Zone and Bagassi South, both located in southwestern Burkina Faso.

Compare brokers to buy Fortuna Silver Mines shares

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Silvercorp Metals

Silvercorp Metals is a Canadian mining company. It owns 4 silver, lead and zinc mines in the Ying Mining District.

It also owns 2 floatation mills in the Ying Mining District. One with a capacity of 1,000 tonnes per day and another with a capacity of 2,200 tpd, giving the Ying Mining District a milling capacity of 3,200 tpd.

Compare brokers to buy Silvercorp Metals shares

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Pan American Silver Corporation

Pan American Silver Corporation is a mining company that operates in Latin America and is based in Canada. It has 6 operating mines:

  • La Colorada. Based in Mexico.
  • Dolores. Based in Chihuahua, Mexico.
  • Huaron. Based in Peru.
  • San Vincente. Based in Bolivia.
  • Manantial Espejo. Based in Santa Cruz, Argentina.
  • Morococha. Based in Peru.

Compare brokers to buy Pan American Silver Corporation shares

Pros and cons of investing in silver mining companies

Pros

  • A large variety of stock to invest in.
  • Control over your investment.
  • Leave the market when you want.
  • Tried and trusted way of entering the investment world.

Cons

  • While safer than futures, stocks are still vulnerable to market fluctuations. Valuable metals can be especially volatile, and prices may vary wildly for no real reason.

Compare brokers to buy silver stocks and shares

2. Invest in silver ETFs

Exchange-traded funds are a similar option, but they allow you to purchase a basket of assets in one transaction. These are already diversified to a certain degree, (although you should still ensure not to put all of your money into one ETF. ETFs are traded on stock exchanges, so they’re as easy to access as shares.

Compared to other popular investment methods, ETFs are simpler and more accessible. ETFs can be bought and sold in a similar way to stocks but remain less vulnerable to market fluctuations due to the diverse range of assets that form them. ETFs are perhaps the best choice for newcomers looking to start investing in silver; there are a number of ETFs to choose from representing a scope of different companies.

Pros and cons of silver ETFs

Pros

  • ETFs are one of the most reliable options for investors. While they still come with risks, they are much more resilient to market conditions.
  • Gain far reaching access to silver assets at reasonable prices.

Cons

  • Because ETFs are made up of a collection of assets you lose some of the control you might have had over an investment in a single stock.

Compare brokers to buy silver ETFs

Invest in silver contracts

Futures and options contracts can be traded on contracts for difference (CFD) platforms. Futures let you buy stocks in a commodity at a set price, which you will then receive some time in the future. The idea is that you end up buying stocks at a lower price than they would otherwise be, but this is heavily dependent on market movements. Options contracts are similar, but give you the option to purchase stocks or commodities at a set price by a certain future date, but you’re not obliged to do so.

As they are vulnerable to market volatility, futures and options are riskier than typical stock purchases. Some luck and a good knowledge of the market futures can bring you large returns, but on the other hand you may make a loss. If you’re new to investing you might want to learn the ropes first before considering futures.

Pros and cons of silver contracts

Pros

  • Under the right conditions futures can yield solid rewards for their investors.
  • Futures give you straight ownership over your stocks.

Cons

Compare brokers to buy silver contracts

Buy silver coins and bullion

Rather than investing in silver stocks, you may decide to invest in physical silver. Ranging from an ounce to five or more kilograms, you can choose to buy coins or bullion to sell on your own terms.

While you have full control over the asset, buying physical silver is a longer-term investment. Depending on the amount you buy you could be waiting some time to sell it. Like other investments, physical silver prices are still influenced by the market.

A similar alternative is to invest in the commodity through a trading platform – you don’t ever actually see the silver, but you’ll own it and it’ll be stored on your behalf. This comes at a cost, but could be worthwhile if you want to invest in a lot of silver.

Pros

  • Direct control over your asset.
  • Finally selling your assets can bring great returns.
  • Silver looks pretty in a pile on your floor.

Cons

  • It can take a long time to find a buyer for your assets.
  • Buying physical silver makes you vulnerable to fraud.

How much is silver worth now?

Here’s a graph with some of the latest silver prices.

Is silver a safe investment?

As mentioned above, silver is a staple material for many modern industries and there are a number of routes available for investing in it. However, regardless of which way you approach it, your investment will inevitably come with risks:

  • Fluctuating prices: Valuable metals have a tendency to fluctuate in price over small periods of time, sometimes with no real cause.
  • Storage: Finding somewhere to store physical silver can be a hassle, and storing it with a broker will come with a fee.
  • Fraud: While it is tempting to look for the best prices, if it is too good to be true, it probably is. When buying physical silver, trade with reputable dealers to avoid being fleeced.
  • Political and environmental events: Political and environmental issues can make the mining, refining and trading process more expensive for companies, causing price fluctuations.

Compare these providers for access to silver ETFs and more

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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

Bottom line

Investors tend to see silver as a safe haven investment, but safe haven doesn’t mean “safe”. You need to ensure that you still diversify your portfolio. Consider what your options are and ensure you’re aware of the risks involved in investing in this commodity, such as whether you’ll need to store any physical silver and the costs associated with it.

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