Guide to Silver Investing

For many economists, Silver is considered the most important natural resource in the world, after water and oil. That is because Silver is used in the manufacture of millions of electronic devices every year, including the electronic components of appliances and automobiles. It is sought after by the medical industry because of natural antibacterial properties, and the fashion industry for its timeless beauty. While less than 15% of the world’s annual Gold supply goes to manufacturing, well over 50% of Silver sold each year is put to industrial use.

As an investment, Silver has several unique benefits. Silver is money, just like Gold. It is not a digital promise that can be created or deleted. In fact, Silver is the earliest known form of currency in the world, pre-dating other bartering materials by at least a thousand years.

For those looking into the process of purchasing Silver and other Precious Metals, the steps may seem foreign and hard to understand. To help beginners become more comfortable with their decisions, here are five rules that help ensure wise choices in the world of Silver investing.


  1. Compare pricing
    Don’t pull out your credit card for the first thing you come across. If you see a Silver purchase opportunity that seems appealing, look around for comparable coins or bullion pieces. Compare the pieces side by side, looking at photographs and listed specifications and make note of all similarities and differences.
  2. Pay attention to quality and confirmed authenticity
    Silver can be found at a bargain, but often, this is because it lacks one or more desirable qualities. Precious Metals are strong and resilient to many things, but even Silver can be damaged by poor handling or chemical mishaps. A collectible Silver coin valued at thousands of dollars can diminish in worth with improper care. It’s also important to be on the lookout for counterfeit pieces.
  3. Watch Silver spot prices closely, before and after you buy
    Look at recent trends in Silver prices and see how the current price compares to recent weeks and months. Even if Silver is having a good year, you don’t want to make your first purchase when prices are at the highest levels the market has seen in years. Once you’ve made your purchase, check the value of your Silver investments regularly. You never know when a spike in price will create a selling opportunity that may be ideal for you.
  4. Research the seller
    Before you purchase Silver, make sure to thoroughly research the seller, using online resources to confirm their reputation. Consumer reviews, coin collecting forums and the Better Business Bureau are all excellent places to start.
  5. Diversify with other Precious Metals
    While Silver is a great stand-alone place to invest your money, bringing other Precious Metals like Gold and Platinum into your portfolio is a smart idea. There is always a level of risk associated with investing, but you can protect your dividends by owning several types of Precious Metals.

In addition to these simple rules, there are a few other things to keep in mind. Silver is more affordable than Gold, which makes it easier to start investing in small sums of money. However, Silver prices fluctuate more than Gold. Nearly a billion ounces of Silver enter the marketplace each year, while the world supply of Gold on the market each year is closer to one million ounces. This means you may see more volatility in spot prices for Silver and may need to hold on to your purchase longer than others.

In most countries, Precious Metal transactions under a certain amount can be traded privately and anonymously. So for those looking to keep their transactions out of the public eye, Silver is a great choice. Keep in mind, though, that large investments in Silver require much more space than Gold because the value per ounce is smaller. With any size investment in physical Silver, do the math and figure out just how much space will be required to safeguard your collection and make sure you know your options for storage.

APMEX recommends discussing the pros and cons of investing with a financial adviser or professional.

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