Silver

WAYS TO INVEST IN SILVER

• Investing in silver bars and coins. 

Silver bars and coins, collectively known as bullion, can be widely purchased from reputable dealers online, pawn shops or individuals.

• IRAs and physical silver. 

As a way to diversify a retirement portfolio and preserve capital, investors can include silver in a self-directed IRA that allows them to broaden their alternative assets.

• Investing in silver futures. 

Another way to invest in silver is through futures contracts. These contracts obligate a holder to buy or sell a specific amount of silver at a certain price at a defined time.

• Investing in ETFs that own silver. 

Investors who want exposure to silver futures with a fund that trades like a stock can consider an ETF.

• Investing in silver stocks. 

Another way to invest in silver is through stocks of silver mining companies or shares of ETFs that invest in them.

PROS OF INVESTING IN SILVER

• Various investing options. 

You can buy physical silver, stock in silver mining companies, silver ETFs and silver IRAs — just to name a few. 

• Affordable.  

Silver is much more affordable than gold, making it more accessible for investors with smaller investment portfolios. 

• More earning potential. 

Silver prices have a history of being more volatile than gold prices. With the increased risk comes an opportunity for a greater reward. 

• Linked to industrial demand. 

Silver has many industrial uses which means its price is impacted by industrial demand. As a result, its value can increase when the value of other precious metals is decreasing.  

CONS OF INVESTING IN SILVER

• Higher risk. 

While silver offers the potential for higher returns, its price volatility also presents a greater risk for losses. 

• Linked to industrial demand. 

A lack of silver's industrial demand can work against silver investors. Silver can decrease in value when the values of other precious metals are increasing. 

• Not income-generating. 

Like gold, silver doesn't generate income for investors as other assets do through dividends, interest or cash flow. 

• Physical silver requires storage and security. 

If you opt for physical silver, you'll again have to cover the costs to transport, store and secure it.