Investing in silver | How to invest in this precious metal - Finder UK

A complete guide to buying, selling and investing in silver

Find out how to buy and invest in silver from the UK.

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Learn about how to invest How to invest in silver

Silver has been a valuable commodity for hundreds of years and while its purposes have changed throughout history it has never lost its place on the market. In part due to its inherent malleability silver has managed to adapt to the changing times, keeping its value high even today. We’ve put together four ways to invest in silver and the risks that you may face.

The price of silver hit an eight-year high in early February 2021 as a result of increased interest from retail investors. Following the much-publicised “short squeeze” on GME stocks, investors and the media fuelled speculation about which assets may receive the same treatment, leading to rises in the price of silver, silver-related stocks and silver ETFs.

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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.
  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.
  3. Create an account. You’ll need to sign up for a trading account, and may need to provide ID as part of the signup process.
  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 silver investing vehicle on your platform, and then submit a buy order.

Invest in silver ETFs

Rather than trusting your money to the stocks of one or two companies, ETFs offer the chance to invest in a basket of assets. You can learn more about ETFs with our comprehensive guide.

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

  • 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 futures

By investing in silver futures you are agreeing to 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.

Being so vulnerable to market volatility makes futures risky. 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

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

Cons

  • Futures are a real gamble and if you make the wrong choices you could potentially lose a lot of money.
  • Futures only last for a set period of time, if you fail to use them within this period they expire.

Compare brokers to buy silver futures


Invest in silver stocks and shares

Investing in silver stocks is a well-known method for approaching the market.

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.

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


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.

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?

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

Table: sorted by promoted deals first
Data updated regularly
Name Product Price per trade Frequent trader rate Platform fees Brand description
Fineco
UK: £2.95
US: $3.95
EU: €3.95
N/A
£0
Your first 100 trades are free with Fineco (T&Cs apply)
Fineco Bank is good for share traders and investors looking for a complete platform and wide offer. The minimum deposit with Fineco is £0. Capital at risk.
eToro Free Stocks
£0
N/A
£0
Capital at risk. 0% commission but other fees may apply. The minimum deposit with eToro is $200.
Hargreaves Lansdown Fund and Share Account
£11.95
£5.95
£0
Hargreaves Lansdown is the UK's number one platform for private investors, with the depth of features you'd expect from an established platform. The minimum deposit with HL is £1. Capital at risk.
Degiro Share Dealing
UK: £1.75 + 0.014% (max £5)
US: €0.50 + $0.004 per share
N/A
£0
Degiro is widely seen as one of the best low-cost share brokers, for people who are looking to trade regularly. The minimum deposit with Degiro is £0. Capital at risk.
interactive investor Trading Account
£7.99 (with one free trade per month)
N/A
£9.99 per month
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. The minimum deposit with ii is £0. Capital at risk.
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Data updated regularly
Name Product Minimum deposit Maximum annual fee Price per trade Brand description
Moneybox stocks and shares ISA
£1
0.45% and £1 monthly subscription fee (free for first 3 months)
£0
Moneybox offers a smart and simple way to invest. Sign up in minutes and start investing with £1 via their award-winning app. Capital at risk.
interactive investor stocks and shares ISA
Any lump sum or £25 a month
£119.88
£7.99
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
Nutmeg stocks and shares ISA
£100
0.75%
N/A
Nutmeg offers three types of portfolios. Choose the one that goes with your investment style. Capital at risk.
Hargreaves Lansdown stocks and shares ISA
£100
0.45%
£11.95
Hargreaves Lansdown is the UK's biggest wealth manager. It's got everything you'll need, from beginners to experienced investors. Capital at risk.
InvestEngine stocks and shares ISA
£100
0.25%
£0
Offer - £50 welcome bonus for new customers. Subject to minimum investment. T&Cs apply. Capital at risk.
Moneyfarm stocks and shares ISA
£1500
0.75%
£0
Moneyfarm helps you meet your investment goals with fully-managed portfolios designed around you. Capital at risk.
Fidelity Stocks and Shares ISA
£1000 or a regular savings plan from £50
0.35%
£10.00
Fidelity is another good all-rounder, offering a good package at a decent price. Not suited for trading shares. Capital at risk.
Legal & General stocks and shares ISA
Legal & General stocks and shares ISA
£100 or £20 a month
0.61%
N/A
Legal & General is a big financial services company which offers insurance, lifetime mortgage, pensions and stocks and shares ISAs. Capital at risk.
AJ Bell Stocks and Shares ISA
£500
0.25%
£9.95
AJ Bell is a good all-rounder for people who to choose between shares, funds, ISAs and pensions. Capital at risk.
Saxo Markets stocks and shares ISA
No minimum deposit requirement
0.12%
£8.00
Saxo Markets offers a wide access to a range of stocks, ETFs and funds. Capital at risk.
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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.

Frequently asked questions

    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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