Top Nav

Silver

Gold is the glamorous big sister, getting the headlines and most of the attention, but silver is the quiet, wealthy younger sibling. Silver works harder, with many more industrial applications than gold – and silver has cornered the jewelry market. It is a less extravagant, more affordable portfolio partner.

Silver sales soar

Investing in silver can be a nice entry-point for adding precious metals to your holdings. In fact, American Eagle silver bullion coins produced by the U.S. Mint far outsell the gold version on a per-ounce basis. Affordability is certainly one reason why. Here are some key considerations regarding silver investments:

  • silverThe silver market is much smaller than gold, and like gold, prices are extremely volatile.
  • About half of the silver mined in the world is produced for industrial use, far more than gold. Only about 12% of gold is mined for industrial applications
  • The 2012 average price of $31.15 was the second highest on record, according to The Silver Institute.
  • Mexico is the world’s largest silver producing country, followed by China, Peru, Australia and Russia.
  • Annual silver sales have recently seen record-setting volume, including physical bar investment, exchange traded funds and mutual fund sales.

Investing in silver

For years, precious metal investments were limited to physical holdings such as bullion bars, minted coins, medallions and collectable coins. But now investors can buy and sell silver futures on commodity exchanges, as well as own shares of silver exchange-traded funds and mutual funds.

Each investment has its own pluses and minuses. Silver bars require transport, storage and insurance. Coins and medallions are certainly easier to move and store, but you’ll pay a premium over bullion bar prices. While coins are easy to cash-in, medallions can be a bit of a chore to redeem.

Futures contracts are sophisticated and very risky investments, usually best left to professional traders. But ETFs and mutual funds provide ready liquidity and are easily accessible by investors, though still subject to wide price movements.

Silver miners

Investors may also want to consider investing in mutual funds and stocks of silver mining companies. Of course mining companies are a breed apart and don’t always strictly track silver prices. Miners must be analyzed by revenue growth, balance sheets, and production costs, as well as environmental and political factors.

Silver is the precious metal that, like comedian Rodney Dangerfield used to plead, could use a little more respect.

Commodities in 2017: What You Need to Know

The outlook for commodities in 2017 is strong, continuing the gains of 2016. Here is what investors can expect for precious metals, industrial metals and energy.

3 Best Gold Stocks to Own Today

Gold has has edged lower over the last couple months, but this is expected to change when the new President Trump starts implementing his policies. These are the best gold stocks to benefit.

How to Trade Gold Right Now

Even if you aren't a "gold bug," there is a valuable place for gold and precious metals in your portfolio. Learn which gold ETFs are the best ones.

Why Copper Is Red-Hot Now

Massive U.S. infrastructure projects planned by the Trump administration are putting the spotlight on copper investments. Here are the copper ETFs and stocks to watch.

Is Now the Right Time to Buy Gold?

Gold has recently sold off, and a number of other factors are lining up positively, adding to the reasons it might be the right time to buy gold. But how should investors play it?

More Recent Silver Articles

View All Silver Articles

Income and Prosperity Offer

Income & Prosperity is designed to help you seek out the safest income opportunities and discover an entire world of dividend investments. This free newsletter has a laser-like focus on one issue and one issue only: how can investors near or in retirement generate more income. Each day, you'll receive our best investment idea - skewed towards safe income - but also including lesser known opportunities to grow your wealth while keeping it out of harm's way.
You've successfully subscribed, click the link in your email to confirm your subscription.
There was an error, and you have not been subscribed, please try again.