invest in silver

How To Invest In Silver: All You Should Know

Tags: Best brokers, Buy silver, CFDs, Invest in silver, Investments

Anyone seeking an investment product that guarantees both steady growth in value and some level of crisis protection should consider silver. Although gold is frequently the top pick for investors among precious metals, silver is slightly ignored. This is a poor approach. Purchasing silver might also be a wise investment. Silver investing may be done in two ways. Either as a tangible investment (such as purchasing silver coins) or as a security. All you need to know about how to invest in silver is described here.

What should you look out for when investing in silver?

Silver has long been considered a valuable metal, appreciated for its diverse industrial uses as well as its investment possibilities. If you’re thinking about investing in silver, you need to examine a few crucial elements to make educated selections and optimize your potential profits. Here are some things to think about while purchasing silver:

Understanding the Purpose

Before investing in silver, it’s critical to understand why you’re interested in this precious metal. Silver may be used as an inflation hedge, a store of wealth, and a tool for portfolio diversification. Defining your investment objectives can assist you in determining the appropriate quantity and approach for investing in silver.

Research and Education

Like with any investment, it’s important to learn about the silver market and the variables that impact its price. Keep track of economic data, global supply and demand dynamics, and geopolitical events that may have an influence on silver prices. This information will help you make sound investment choices.

Choosing a Reputable Broker

Using a reliable broker is critical when purchasing silver. A trustworthy broker should provide clear pricing, reasonable fees, and a safe trading platform. Invest in silver using our recommended broker, Moneta Markets.

Why should you invest in silver?

Silver offers several advantages as an investment:

Inflation Hedge:

Silver has traditionally served as an inflation hedge. During instances of increasing prices, silver has shown the ability to sustain or even gain in value, making it an appealing investment alternative.

Industrial Demand:

Silver is used in a variety of industrial applications, including electronics, solar panels, and medical devices. As technology advances, the demand for silver is projected to climb, possibly pushing up costs.

Portfolio Diversification:

Silver in your financial portfolio might help you diversify your risk. Silver has a poor connection with other asset types like equities and bonds. You may lower your portfolio’s overall risk and volatility by diversifying.

Where can you buy silver?

When it comes to purchasing silver, there are various avenues available:

Online Brokers

Internet brokers such as Moneta Markets, as well as those previously mentioned, offer a simple platform for buying and selling silver. These brokers provide silver market access through derivative products such as contracts for difference (CFDs) or enable you to participate in actual silver-backed exchange-traded funds (ETFs).

Our recommendation:
Invest with Moneta Markets

Moneta Markets has regulatory status in one tier-one jurisdiction.
Holds indemnity insurance to provide protection.
DupliTrade and Zulutrade are available for social copy-trading.
moneta markets

Bullion Dealers

Real silver may be bought from trustworthy bullion merchants, either online or in person. When purchasing actual silver, make sure the merchant is reliable and takes into account characteristics such as purity, weight, and storage alternatives.

What could the future of silver look like?

Predicting the future of any investment is challenging, but several factors suggest a positive outlook for silver:

Growing Industrial Demand:

The increased use of renewable energy sources, as well as the growing need for electronics, are predicted to boost silver demand in a variety of sectors. This continuous industrial demand may lead to a rise in the silver price.

Monetary Policy and Inflation:

Central banks around the world continue to implement accommodating monetary policies, which can lead to inflationary pressures. In such scenarios, silver’s historical role as an inflation hedge may drive its value higher.

Where to invest in silver? Our silver broker comparison

Total Fees
Visit Provider
CFDs: Crypto, Indices, Forex, Commodities, Shares, Options, ETFs
  • Support 24/7
  • Fast and reliable order execution
Tight Spreads
No internal deposit fee
• FX • Metals • Indices • Cryptocurrencies • Stocks • Energies
  • Priority Customer Support
  • Exclusive educational materials
  • Enhanced trading analytics
  • Dedicated account manager
Tight spreads starting from 0.0
Depending on payment method
vantage fx
49 global currency pairs, commodities, index CFDs, stock CFDs, ETFs, metals, commodities, energy
  • Open an account in under 5 minutes
  • Trade at home or on the go with MT4/MT5 or phone app
  • Low minimum deposit of $50
Tight Spreads
1:1 – 30:1
No fees
moneta markets
1000+ financial instruments, including Foreign Exchange, Commodities, Indices, Share CFDs, Cryptos, ETFs, and Bonds
  • ECN spreads from 0.0 pips
  • Moneta Markets has regulatory status in one tier-one jurisdiction
  • 3 platforms: MT4, MetaTrader app and next-gen ProTrader
$3 per side for every 100,000 units
70 crypto-pairs, 49 forex pairs (usdzar as well), 5 metals, 26 Indices, 130 stocks, 6 oil and gas, 6 agriculture assets
  • instant registration allowing access to your account
  • usability of the platform
  • almost all popular trading underlying assets in one platform
Spreads from 0.00
3% + inactivity fee

How to Invest in Silver

Investing in silver can be a strategic move to diversify your portfolio and potentially benefit from its value appreciation over time. If you’re considering investing in silver, here are some steps to guide you through the process:

  1. To start investing in silver, one option is to open an account with Moneta Markets, a regulated broker that offers access to the silver market. Moneta Markets provides a secure and convenient platform for trading silver and other financial instruments.
  2. When investing in silver as a commodity, it’s worth considering alternative methods rather than purchasing the raw material directly. One approach is to invest in Exchange Traded Commodities (ETCs), which are investment products that track the performance of silver. Another option is to utilize contracts for difference (CFDs), which allow you to speculate on the price movements of silver without owning the underlying asset.
  3. One advantage of choosing Moneta Markets as your broker is that it is a regulated entity and offers deposit insurance. This means that in the unlikely event of Moneta Markets facing insolvency, your funds and assets are protected to a certain extent, providing an added layer of security for your investments.

Silver Price Development – Current Silver Price

Look at how the price of silver has changed over the past few decades; it clearly demonstrates how appealing an investment it is.

The price of silver was 3 euros per troy ounce at the end of 1990, or 30 years ago. In 2005, the price had more than quadrupled to 6 euros, and by 2006, it had risen to more than 10 euros. The 2007 financial crisis had little impact on the silver price’s progression. As stocks fell during this era, the resistance to crises was already demonstrated.

Silver had already surpassed the 20 euro barrier per troy ounce at the start of 2011 and had reached a high of just under 30 euros by April 2011. Following that, the price decreased to a reasonable $15 between 2012 and 2013, but it was the final substantial decline. Since then, the silver price has been rather constant, with a modest upward tendency since 2019.

silver price development

Invest in silver comparison: What types of silver investments are there?

Investors who are committed to investing in silver must decide how to structure their investment. Essentially, a choice must be made whether the money is to be put in actual silver, which must subsequently be kept, or in a silver security.

If you want to make a tangible investment, silver coins or bars are perfect. Investing in silver things like silverware, on the other hand, is a bad idea. When purchasing, not only must the pure material value be paid but also a price that is assessed, for example, by the design or a brand.

On the other hand, just the material value is often paid out at the time of purchase. With silver jewelry, the situation is different. Rare artifacts may occasionally be resold at much higher rates to collectors and merchants. Yet, in order to accurately estimate the market value and value growth of the jewelry, such an investment needs a high level of competence.

Invest in physical silver bars

Investing in silver bars or coins becomes significantly simpler and less dangerous as a result. Silver coins, on the other hand, have greater manufacturing costs owing to the individual minting of the coins. If you don’t care about the best possible price, you should purchase bars. This has been especially true since January 1, 2014. Since then, silver coins acquired in Germany have been subject to a 19% VAT, provided they are not subject to differentiated taxes.

The issue changes if the precious metal merchant utilizes differential taxes for silver imports and private person purchases. This is conceivable when importing from non-EU nations such as the United States, Canada, or Australia. Afterward, the decreased import sales tax rate of 7% takes effect, which the investor may also profit from.

The dealer shows 19% on the difference between his buy and sales price rather than the net sales price. Because of the low trading margins for precious metals, the extra 12 percent is just roughly 1%.

The dealer, on the other hand, is not required to pay these unequal taxes. When purchasing silver coins, investors should inquire about the terms.

If unequal taxes do not apply, an investment in bars provides purchasers with the best price-performance ratio with respect to manufacturing expenses. Since the manufacturing process is basic, very few production expenses are added to the purchase price. Moreover, depending on your preferences or budget, the bars may be purchased in weight classes ranging from 100 to 1,000 grams.

If you want to acquire a larger quantity of silver, however, the 1-kilogram bars are the way to go. The optimum ratio between manufacturing costs and silver value. If a partial sale of silver is required at a later date, the bars may also be chopped into little bars.

Invest in silver: where are the pitfalls?

When purchasing silver, whether in the form of coins or bars, it is essential to confirm that the vendor is sincere. As a result, we only advocate buying from a reputable precious metal merchant. The customer, for instance, is aware of these thanks to experience reports and online reviews from other buyers. It’s also worth checking out the website and the imprint.

Dealers that have been on the market for a long time and are situated in Germany look more trustworthy. Certifications, such as TÜV, or membership in a professional group, such as gold and silversmiths, may also indicate a trustworthy service.

Another option is to acquire silver from a bank. When purchasing silver, it is best to compare multiple offers and inspect it in person.

Keep your eyes open on eBay and Co.

Buyers should use extra caution when making bids on auction sites like eBay. Very attractive silver prices are often mentioned here. Unfortunately, there are rogue sellers on such platforms that offer silver with low purity or, in the worst-case scenario, no genuine silver at all.

A big price drop might be anticipated at the time of selling. The product should ideally have a fine silver content of 99.9%.

Investors should also consider carefully if they want to own bars. These thin bars seem appealing at first glance since they feature a pre-stamped breaking point similar to a chocolate bar. This makes it possible to quickly detach and resell portions of the bar.

Nevertheless, there is a catch to the entire affair. Such bars have greater manufacturing expenses, which are added to the purchase price. The price-performance ratio is often lower than with traditional bars.

While purchasing silver coins or bars, the level of preservation should not be overlooked. When selling silver coins to a dealer, poor quality, such as milky spots created by contact with damp air, may result in a considerable devaluation. The same is true for scratches. Investors should consider this not just while purchasing silver, but also as they continue to possess it. Plastic tubes for money or boxes, for example, might be useful. They shield the silver from outside influences.

Buying silver without VAT – is that possible?

It is also feasible to acquire the basic material, silver, physically without paying VAT. If you wish to invest in silver, you may acquire huge silver bars and have them held in bonded warehouses. These are warehouses for duty-free and tax-free temporary storage. The hitch is that once you have actual possession of the silver, and it has left the warehouse, you must pay the standard sales tax.

Another alternative is to invest in silver coins. Silver coins are accessible without VAT, although the margin between silver coins and silver bars is very considerable. As a result, rather than investing in silver coins, one should acquire them for hedging reasons.

We therefore advise buying silver in the form of shares, CFDs, or ETFs with Moneta Markets.

Our recommendation:
Invest with Moneta Markets

Moneta Markets has regulatory status in one tier-one jurisdiction.
Holds indemnity insurance to provide protection.
DupliTrade and Zulutrade are available for social copy-trading.
moneta markets

Invest in silver as an ETF

Silver may be purchased as a security on trading platforms such as Moneta Markets in addition to actual ownership. Banks may also make such purchases, such as in the form of an ETF.

Yet, owing to an EU restriction on securities funds, access to silver ETFs is difficult. According to this, while diversifying, a specific product, such as silver, should not account for more than 20% of the total.

Outside the EU, the Zürcher Kantonalbank, for example, has the silver ETF ” ZKB-SILBER-ETF ” in its program. Exchange-traded commodities, or ETC for short, are another option that is accessible in Germany.

Since May 2020, an ETC from the issuer Xtrackerts ETC has been available for trading on Xetra. Investors may participate in the performance of the silver price by purchasing the Xetra Silver ETC.

Investors may invest in commodities using these exchange-traded securities. The DB Physical Silver ETC is worth mentioning here. A division of Deutsche Bank called Deutsche Asset Management is responsible for publishing it.

Silver mines may also be an intriguing non-physical investment in silver. As one would expect, it is not so much about the evolution of the silver price as it is about the security of a silver mine. Nonetheless, there is a strong association between growing silver prices and the price development of a silver mining ETF in this case.

As the price of silver rises, the value of the silver mining ETF grows as well. Sometimes, even disproportionately. A dividend may also be paid out based on the offer, independent of the price.

Invest in silver as CFD

As previously stated, the most user-friendly and cost-effective option to invest in silver is via Contracts for difference (CFDs). A silver CFD is similar to trading shares on an exchange in that it monitors the price of the underlying commodity (silver in this example) but does not reflect ownership of the precious metals.

Investing in CFDs on the commodity silver is often linked with greater risks. As a result, the odds of winning are greatly increased.

Invest in Silver Comparison: What is the best silver investment?

As an investor, you naturally wonder if you should invest in commodities, stocks, or CFDs. In general, this depends on the investor’s tastes; however, there are advantages and disadvantages to both genuine silver and silver CFDs:

 Real Silver (coins or bars)Silver CFDs and ETFs
Pros– Tangible asset with intrinsic value– Easy to buy and sell
 – Potential store of value and inflation hedge– Lower trading costs and fees
 – Physical ownership– Protection against insolvency
 – Portfolio diversification– Spread of risk
Cons– More complicated to buy and store– Not physical silver
 – Higher trading fees– Vulnerability to hacker attacks
 – No diversification 
 – Risk of theft 
 – VAT must be paid 

When should you invest in silver?

The current period witnesses a true upswing in the purchase of silver. The investing potential of silver is lower than that of gold, but the returns are also lower. The price of silver has reached an all-time high, and there is no indication that this trend will reverse itself in the next weeks or months.

After all, the supply of silver on the market and the demand for it are the two most important elements in determining its price. The price will be higher if there is a smaller quantity available in contrast to the demand for purchases. Despite this, there is an ongoing demand for silver in the market, which may cause the price of silver to remain relatively unchanged. For instance, silver may be found in electronic devices such as mobile phones, laptops, TVs, and solar cells. As a direct consequence of this, there will never be a shortage of silver.

Last but not least, every person is responsible for determining the right time for them to either buy or sell silver. Buying silver is now something that we recommend.

Conclusion: Invest in silver

Silver is often overlooked by investors in favor of gold. Nonetheless, there are some compelling reasons to purchase silver as a physical commodity or in the form of securities.

The strong price stability in comparison to traditional corporate shares or cryptocurrencies, particularly during times of crisis, supports this. Silver’s modest price in comparison to gold makes it especially appealing to small investors.

Last but not least, investors should keep an eye on silver prices because it is a natural resource that is becoming more scarce. If demand rises, prices should also rise.

Someone who is hesitant to purchase silver in the form of coins or bars, for example, due to concerns about safe storage, may instead invest in silver via instruments such as ETFs and ETCs. Hence, when it comes to commodities, investors should look beyond gold. Purchasing silver may be beneficial.