Investing in silver is a great way to begin an investment portfolio. Silver doesn’t have the same high, prohibitive prices as gold and platinum, and it is still relatively safe and stable. Just like other precious metals, silver is in high demand all over the world, so the chances of it suddenly losing value are slim. Although one of the most popular ways to invest in silver is to buy bullion to keep at home or in a custodial vault, you can also take advantage of silver’s stability by investing in silver stocks.
There are a couple of different ways to invest in silver stocks. You can put your money into silver Exchange Traded Funds or in stocks for silver mining companies. Silver EFTs are securities that are traded on the stock exchange. These funds are based solely on the price of silver at all the major stock exchanges. When you open a silver EFT account, you buy silver that is stored around the world. You are charged a bit of a fee to a storage facility and for the trading, but mostly, your fund will rise and fall with the overall price of silver.
Investing in silver mining companies is another way to gain money from silver, although it is more risky. Like investing in a technology company, investing in a mining company gives you a share of the company. If the company makes a profit, you’ll make a profit. If the company loses money, you’ll lose money. While you would think that during times when silver is in high demand the company would do really well, keep in mind that mining companies are prone to accidents and bad decisions which can lead to great losses even during boom times. While investing in silver mining companies can be a good choice for part of your portfolio, you shouldn’t base your entire portfolio on this type of investment.
These are the two most basic ways to invest in silver through the stock market. You can do this, though, through a regular stock exchange or through an account like a self-directed IRA. If you get to choose where your IRA is invested, you can choose to invest some of it in silver EFTs or silver mining operations. In fact, you can even use an IRA to invest in physical silver bullion, which can be a great way to ensure that your retirement funds are never completely shot, no matter what the economy does.