Investing In Silver 101: A Guide with All You Need to Know

With inflation rates going up worldwide, given the results of a never-ending pandemic that started over a year ago, many people seek different ways to generate and protect wealth. Thus, investing in silver becomes an interesting asset to do so. Now, why silver and not any other stock or precious metal? What are the benefits that the grey metal holds against them?

The truth is that, while gold usually is the first precious metal that comes to mind as regards investments, silver has some advantages of its own. Consequently, and as has happened throughout time, silver is a good investment alternative.

This article will go through some points that potential investors should consider when thinking of silver as a good investment. Moreover, we will also see how and when it is best to invest in physical silver.

Should I Invest in Silver?

Many people ask themselves if silver is a good investment and if they have the correct characteristics to do so. Firstly, we should understand that silver is considered a commodity or tangible asset like many other natural resources. The good side of these assets is that their behaviour differs from stocks and bonds. 

Whenever there is financial uncertainty due to any external – or internal – policies, stocks and bonds tend to go down. In the case of tangible assets, like silver, they usually go up or even stay where they are. Thus, silver investments work as a way to protect wealth during hard times.

BullionVault

This same thing happens with inflation and interest rates, such as savings accounts. The profit – or loss – provided by them is driven by the financial situation of each country or region. As silver has intrinsic worth, it holds its value for the long term. Thus, it’s no surprise that many people choose silver to keep their wealth safe.

So, all in all, if you’re looking for a way to protect your wealth, silver is the option. As a plus, this precious metal safeguards your assets against any external situation that may affect the value of your local currency. But now we know how silver investments work, let’s dive into the pros and cons of investing in silver.

Pros and Cons of Investing in Silver

Of course, as with every other investment asset, silver has its up and downs. Here is a list of potential benefits or risks of investing in silver that may help you decide whether to take upon it or not.

Pros

Besides being an excellent way to protect your wealth against inflation rates, there are many advantages to investing in silver. Let’s take a look at them:

  • Silver requires no third parties: Other than the trader you get your silver from, investing in silver doesn’t require any other third party or institution. You can purchase your silver anywhere you want and through any channel. This makes it a profitable asset since there are no commissions or fees of any kind other than the trader’s price.
  • Investing in physical silver protects you from hacks: There is a possibility to buy silver and keep it in vaults without being delivered at your door. However, buying physical silver holds an advantage against crypto, for instance. Hackers or viruses can “erase” your digital assets, thus making you lose wealth. With silver, you get what you buy, and you can safely store it wherever you want.
  • Silver is cheaper: Silver becomes a much cheaper asset compared to the precious metal diva, a.k.a gold. This is an excellent advantage if you’re not planning to invest a lot of money but are still looking for ways to protect your wealth and make a profit. You can learn more about the differences between gold and silver here.
  • Silver is going through shortage: Silver supplies are falling due to its high industrial use. This, given the supply and demand relation, makes silver price skyrocket in given moments of the year. Spotting those times can mean a considerable profit from your silver investments. As the technology industry grows, more silver is required. What do you think may happen in the future?

Cons

Here are some things you should take into account before investing in silver:

  • Possible long-term investment: As the price of silver follows demand, it may take some time for you to make a profit. Bear in mind that prices may go up for a brief moment, which may serve as a profitable window for you to sell.
  • Always on the watch: When you invest in silver to make a profit, you must always pay attention to how markets move and make the right call at the right moment. On the bright side, your wealth will remain safe during the whole time. Subscribe to our weekly reports to keep track!
  • Silver is space-consuming: Being cheaper than gold, you can buy much more silver with the same amount of money. If you decide to keep it at home, you may need to buy some containers or supplies to keep it organized and well-preserved.
  • Many forgers are on the lookout: Silver items, such as coins or jewellery, are easily forged. Thus, those who are not experts may fall for a scam and waste money. Fortunately, there are some guides and tips to see where to buy your coins or assets and how to tell whether they are authentic or not.

How To Invest In Silver

There are many available ways to invest in silver. While some people prefer bullions or coins, others feel inclined to buy bars or jewellery. Here are some tips for you to decide what’s best for you and your investment strategy.

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Buy Silver Bullion

Silver bullion refers to refining the metal to a high standard of elemental purity. People can buy silver bullion in bars, coins, ingots or rounds. When it comes to currency, you can acquire many popular items that have been popular throughout history and continue to grow in value.

One of the most popular coins is the American Silver Eagle. As the US Mint does not sell directly to the public, it’s essential to look for the best price to protect your wealth and efficiently make a future profit. However, many mints create their private coin collections, which also grow in value throughout time.

2021 design of the american silver eagle
The 2021 design for the American Silver Eagle coin

If you’re not into coins, you can also buy silver bullion in bars or ingots. Some providers even offer the possibility of storing your assets for you, letting you trade for them online. This is an excellent opportunity to protect your assets without using any available space at home.

Silver coins and bars hold different characteristics. While anyone can invest in either or even both, it depends a lot on your objectives to define which is better for your particular case. If you want to learn more about the difference between them, you can read our guide.

How To Make Money With Silver

As we said before, silver is an excellent way to protect your wealth. However, it can also help you make money. While investing in silver is profitable, there are other ways to generate a passive income through this precious metal.

One great way of making money with silver investments is acquiring coin collections. As these collections are difficult to complete, having all the coins from a particular coin set can add some value as a whole. Thus, you can sell the entire coin collection for more money than you would get for each issue.

Another interesting way of generating a passive income through silver is joining an affiliate business. These businesses pay a commission for referring people to their websites. So, suppose you already belong to a coin collecting community. In that case, you can start posting your products and make money out of each sale. Here are some examples of places where you can start an affiliate business, buy precious metals at low prices, and generate a passive income:

  • 7k Metals: This website allows you to buy NGC certified coins online. They produce their own coin collections but also include popular coins you may invest in. Their affiliate business is a great opportunity to receive high commissions due to sales and referrals. They have different membership plans that adjust to your personal budget.
  • QuickSilver: Another good website to both generate a passive income with referrals and get coins at accessible prices. If you don’t want to pay a monthly fee, you can participate as a preferred customer, which doesn’t require a membership. They sell popular coins, both ungraded and NGC/PCGS certified, which provides a wide choice. Shipment fees are quite accessible, and they have no hidden fees. This makes it great to know exactly how much you’re about to pay for a specific coin. They update their stock every week, and you can learn about it by signing up for our newsletter.
  • BullionVault: BullionVault does not sell coins, but gold, silver and platinum bars. This website offers the possibility to buy fractional precious metal bars, so you don’t have to buy an entire bar if your budget falls a little short. They also offer an affiliate business, where you get to generate a passive income with people who join their business. Another good feature they offer is their storage system. This system allows you to trade precious metals without having to wait for them to arrive at your door. They store it for you until you decide it’s the best moment to sell.

Last but not least, another profitable channel is social media. Many people create or join Facebook groups to publish and sell their coins online. The more engaging your content, the better, as it will drive more people to join and learn about your products. It may take some time to end up doing money, but it’s definitely worth the shot once you get a good audience!

To Conclude

So, all in all, is silver a good investment? Yes, it is. But it’s not only that. Silver is an effective way to protect your money from inflation and recession. However, it is crucial to always buy from a reliable trader. Last but not least, silver can also be an excellent way of generating a passive income.

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