What kind of silver to invest in

However, there are a number of disadvantages. First, you'll typically pay a slight premium to buy silver from dealers, and you'll often have to accept a slight discount when you decide to sell it back to your dealer. If you expect to hold on to your silver for a long time, then those costs aren't monumental, but for those who want to trade frequently, they're typically too costly to bear several times in close succession.

In addition, storing bullion involves some logistical challenges and added costs. For traders, exchange-traded funds that themselves own silver offer an effective substitute to owning bullion directly.

Each share of a silver ETF corresponds to a certain notional amount of silver, and the prices of ETF shares typically track silver prices fairly closely. Like any mutual fund or ETF, silver ETFs have expenses that get charged through to shareholders, but they tend to be fairly modest.

Some investors don't like silver ETFs because they don't give you actual possession of silver. In addition, ETF shares can trade at a premium or discount to the actual value of silver, leading to some discrepancies depending on when you trade shares.

However, for ease of trading, the ETF shares allow you to participate in the general movements of the silver market. Another way to invest in silver through the stock market is by buying shares of silver mining companies. Silver mining stocks usually rise in value when silver prices go up and fall when silver performs poorly.

Often, for a given price increase in silver bullion, mining stocks will climb several times that amount in percentage terms. However, the challenge with silver miners is that you also have to deal with the risks involved in actually operating a mining operation.

Sometimes, an accident at a mine or a bad result in exploring a potential property for silver will result in bad performance from a particular company, even if the silver market is generally strong. That company-specific risk is hard to hedge against, although owning baskets of mining stocks can offer some protection. Finally, investors can choose to buy shares of silver streaming companies. These companies don't run mining operations themselves but rather offer financing to miners, getting back a royalty or streaming interest in their production.

Usually, streaming companies are able to buy silver production from their mining partners at a fraction of the current market price, offering them a way to get paid back and earn a profit from their capital.

Streaming company stocks therefore rise and fall with silver prices, but they're also affected by the quality of financing deals they can arrange. The best silver investment depends on your needs. If you want more than 20 investor kits, you need to make multiple requests.

Select 20, complete the request and then select again. By selecting company or companies above, you are giving consent to receive communication from those companies using the contact information you provide. And remember you can unsubscribe at any time. But Bill Holter and Jim Sinclair hit the nail on the head for me. There is no way that the world can pay the debt, something has to give. The global financial system is based on ever increasing amounts of debt.

The endgame outcome is certain, the path is uncertain. Stocks and real estate looks very expensive relative to PMs. I am super leveraged on real estate where I earn a good rental yield but have also been accumulating silver and gold in lieu of keeping cash in the bank. You cannot compare investing in PMs with investing in stocks or real estate, its apples and pears.

I would rather invest in silver than keep excess money in the bank. Im happy to keep my silver with my broker for the next few years until I have a better handle on the global outlook. Long term plan is to take delivery to avoid paying longterm storage costs and have my children inherit the bulk of my PMs.

In fact, I dont have any savings accounts for them. I allocate a portion of my PMs to them each month as if I would be saving fiat ccy for them. I suspect the value of my PMs during the next economic downturn will be enough to cover most or all of my housing loans. Then I will increase my cashflow and look forward to retirement. I stack gold and silver an insurance policy for my grandchildren. I love them!! I am certain that our monetary system will collapse when??

Oh wow, you are so far off in left field. People like me buy silver for when the dollar collapses. We want the price to keep going down to lower the dollar cost average.

A safe deposit box at the bank? Countless people have made articles on this. The answer is absolutely not with a bank! Just look at the last 10 years of the value of bars and coins and you see that if there is any rise in value it is the rise of the sellers price and not that you could sell your silver for a profit. You must be logged in to post a comment. How to Invest in Silver. Grab Your Report! Trends, Forecasts, Expert Interviews and more! Grab Your Report. What Was the Highest Price for Silver?

What was the highest silver price ever and when was it reached? Learn about the white What's in store for silver in the future? Keith Neumeyer of First Majestic Silver has said The metal has established uses in the automotive sector, across various electronics products, in solar panels, and in photography.

New technologies such as silver oxide batteries, silver conductive inks, and various silver-based nanotechnologies in medical applications are all quickly becoming standards in their industries. This industrial demand makes silver prices more volatile than gold and generally reactive to various measures of manufacturing data.

Given this fact, ETFs that track silver prices or futures could be a better bet versus physical bullion, as they can be sold quite easily if investors think prices are too frothy. Then there are costs to consider.

Buying physical bullion , of any precious metal, comes with added costs investors may not be thinking of. For example, the United States Mint produces several silver bullion coins , with the most popular being the one-ounce American Eagle.

These coins sell at a stiff premium to spot silver prices. Then there are the storage costs to consider. Safety deposit boxes at banks carry an annual fee and home safes can range into the thousands, depending on the size, while precious metals IRAs and custodial accounts come with yearly storage fees as well. Shareholders don't actually own title to the metal itself unless they are an authorized participant in an ETF. This fact underscores the number one reason why most investors choose precious metals in the first place: insurance.

A perfect example of the potential problems with counterparty risk stems from the bankruptcy at MF Global in late The liquidating trustee in the court-approved bankruptcy paid these investors about 72 cents on the dollar for their holdings. Finally, ETF fees do have an eroding effect on their underlying prices. Many of the physically-backed funds sell a portion of their bullion to pay for their expenses.

Over time, this has caused share prices to track less than spot. For investors looking to gain access to the silver markets, owning both physical bullion as well as purchasing ETFs have their pros and cons.

Basically, it comes down to what they are looking for. If an investor seeks an easy and instant investment of silver, the funds come up shining. However, if a person truly believes that the financial system will collapse, physical silver is an ideal alternative.

Maybe owning both would be the most prudent move. State Street Global Advisors. American Numismatic Association. United States Mint.

Royal Canadian Mint. JM Bulllion.