Category: Buy Silver

Silver has long been treasured for its beauty and versatility, making it an attractive asset for any savvy investor. Beyond its aesthetic appeal, silver has various industrial uses and provides a hedge against inflation and economic instability. Whether you’re a seasoned investor diversifying your portfolio or new to the world of precious metals investment, discover what makes silver so timeless and valuable and how to start investing today. 

Why should you invest in silver?

The main advantages of investing in physical silver are: 

• Tangible asset: Unlike stocks and bonds, silver is a physical asset that you can hold in your hand. It comes with no counterparty risk and provides greater security for investors.
• Hedge against inflation: Like gold, silver is viewed as a hedge against inflation. It has a negative correlation with other assets, which means it retains its value – or even increases in value – during periods when other assets (such as currency, stocks, or property) are devalued. 
• Relatively affordable: Silver carries much of the same investment benefits as gold, but at a much more affordable price point. This makes it more accessible for investors with a limited budget.  
• Scarce asset in high demand: Silver is a high-demand precious metal with limited supply that makes it a savvy investment. Unlike paper currencies, which can be printed at will, silver has a finite supply. 
• Increasing industrial uses: Silver has various industrial applications, from electronics to solar panels and medical devices. Its industrial uses are only increasing, driving up demand that increases its value. 
• Potential for more gains than gold: The market for silver is much smaller than that for gold, making it a lot more volatile. This means that silver can lose value more than gold in bear markets, but in bullish markets its price will soar faster and higher.   
• Undervalued compared to gold: The current gold/silver ratio of 78 suggests that silver prices are undervalued compared to gold. This means now is an ideal time to purchase silver.  
• Portfolio diversifier: Adding silver to your investment portfolio is a way to diversify against traditional asset classes, such as stocks and bonds, helping to balance your overall risk. 

How to invest in silver 

The two main options for investing in physical silver are to buy silver bars or silver coins. These are both wise investments and the choice depends on your investment goals, budget, and interests. 

To help you decide the best way to invest in silver, we compare the difference between silver bars vs silver coins. 

Silver bars

Silver bars are physical blocks of silver that have been refined to a high level of purity, usually 99.9% or higher. They come in various sizes and weights, from small one-ounce silver bars to large 1,000-ounce silver bars, suiting a wide range of investors and budgets. 

Silver bars are manufactured by various sovereign and private mints and refineries, such as the United States Mint, PAMP Suisse, and the Perth Mint. Each silver bar comes stamped with its weight, purity, mint mark, and a unique serial number that helps certify its authenticity. 

Pros and cons of investing in silver bars

Like any investment, buying silver bars comes with its own set of advantages and disadvantages. Let’s look at the pros and cons of investing in silver bars: 

Pros of Investing in Silver Bars

Cons of Investing in Silver Bars

Tangible ownership: When you buy a silver bar, you own the physical metal and can hold it in your hand. This provides more security to investors and carries no counterparty risk.Lower premiums: Silver bars come with minimal premiums over the silver market price (i.e. spot price). This makes them a wise choice for bulk investments, allowing investors to maximize their purchasing power. High purity: Investment-grade silver bars are made from the highest purity silver, between 99.9% and 99.99% pure. Transparent pricing: Because the price of silver bars is based on the current spot price, pricing is transparent and doesn’t rely on additional numismatic value.

Volatile market: The price of silver can be highly volatile and subject to fluctuations based on economic circumstances, industrial demand, and geopolitical events. This means its price can swing up and down frequently.Less liquid: Larger silver bars may be less liquid as you cannot sell small increments.

Silver coins

Silver coins look similar to circulation coins used to make payments everyday, but they’re made from investment-grade silver of between 90% and 99.9% purity. They are manufactured by both governments and private refineries. Many silver coins are considered legal tender in their country of origin, but their intrinsic silver value is much higher than their face value. 

Like silver bars, you can buy silver coins in various weights and denominations, from 1/10 ounce up to 2 ounces in size. Popular silver coins include the American Silver Eagle,  Chinese Silver Panda, and British Silver Britannia. Note that investment-grade silver bullion coins are different to numismatic coins, which are valued for their historical significance rather than their silver content. That said, some silver bullion coins also carry numismatic value. 

Pros and cons of investing in silver coins

Below, we look at the advantages and disadvantages of investing in silver coins. 

Pros of Investing in Silver Coins

Cons of Investing in Silver Coins

Tangible ownership: Like silver bars, when you buy silver coins you own the actual metal itself. This provides more security and control over your investment than other assets like stocks, silver futures, and silver ETFs. Numismatic value: Some silver bullion coins have numismatic value which increases their worth beyond the price of the silver content itself. This is especially the case for rare, historical, or collectible silver coins. Different denominations: Silver coins come in a range of sizes and weights, allowing a range of investors entry into the precious metals market.Aesthetic appeal: Unlike silver bars, silver coins come in various designs and exhibit excellent craftsmanship. Each mint has their own unique designs and some will change each year. This gives silver coin investing an extra aesthetic appeal.

Higher premiums: Silver coins usually carry a premium over the spot price of silver. This can make them a little more costly than purchasing silver bars. Volatile market: Like investing in silver bars, buying silver coins exposes investors to the volatility of the silver market. Investors should be prepared for significant price fluctuations.

Silver bars vs coins

If you’re unsure whether investing in silver bars or silver coins is better for you, let’s sum up the main differences between the two: 

Silver bars: 

• Have lower premiums over the spot price of silver compared to silver coins, making them a more cost-effective way to invest in silver
• Are often made from higher-purity silver than coins, usually 99.9% or higher
• Are available in larger sizes than silver coins, making them more ideal and economical for investors wanting to make bulk investments
• Can be less liquid than silver coins, especially when purchasing larger sizes
• Don’t have the same potential for collectibility or numismatic value.

Silver coins: 

• Are widely recognized, making it easy to verify authenticity when buying or selling 
• Can appreciate in value compared to the silver spot price due to collectibility, rarity, or historical significance 
• Are available in smaller denominations, making them more accessible for new investors and easier to sell silver in smaller increments 
• Have higher premiums over the spot price 
• Are less suitable for investors looking to make bulk silver purchases. 

If you’re ready to start investing in silver, you’re in the right place. Explore the lowest prices on gold and silver coins and bars with Metals Radar’s free comparison tool. We search the most reputable precious metals dealers to find you the best silver and gold bullion prices so you can start investing now. 

Other ways to invest in silver

There are other ways to invest in silver beyond buying bullion coins and bars. Other silver investments include: 

• Silver jewelry: Owning physical silver in the form of jewelry is a time-honored way to invest in the precious metal. That said, silver jewelry is usually made from lower-purity silver than bullion coins and bars. 
• Silver mining stocks: You can indirectly benefit from investing in silver by joining the stock market and buying shares in silver mining companies. 
• Silver futures: These are contracts traded on commodity exchanges where you agree to buy a certain amount of silver at a specific price on a future date. 
• Silver exchange-traded funds (ETFs): Similar to stocks, ETFs allow you to benefit from the silver market without actually owning silver yourself. 

While these silver investments can be valuable and are a great way to diversify, nothing compares to the security of owning physical assets that you can hold in your hand and have complete control over. To start investing in physical silver, explore our comparison engine and find the lowest prices from the world’s best precious metals dealers.

What affects the price of silver?

Silver price is usually displayed in U.S. Dollars and measured in troy ounces. Silver’s price is mostly determined by: 

• Supply & demand: Silver has a finite supply. Industrial and investment demand will drive prices up, while increased mining supply might lower prices. You can learn more about silver supply & demand through the Silver Institute. 
• Economic conditions: Silver’s price often increases during periods of high inflation. 
• Market speculation: Like any investment, silver’s price can be influenced by the buying and selling behavior of silver investors. 
• Strength of the U.S. Dollar: Like gold, silver’s value can increase when the U.S. Dollar is weak. 

Buy silver bullion bars and coins in the United States, USA

The best way to invest in silver is with high-purity bullion bars and coins. Start your silver investment journey with bars and coins from the world’s most prestigious mints and refineries. 

Metals Radar’s comparison engine searches the best precious metals dealers to find the lowest silver prices on the market so you can maximize your investments. Because if you can’t see the difference, why pay more?