Different Ways of Investing in Silver

When it comes to silver investment, silver can hold a candle like three of its sisters in the precious metal category like platinum, palladium, and gold as an investment commodity. For over centuries now, silver has been widely regarded as a store of value and a form of currency in many countries. For those who want to go into silver investment, your options may include buying silver coins and silver bullion bars, opening a silver account, owning silver certificate, trading in Exchange Traded Funds(ETFs) and entering into a Contract for Difference (CFD), just as what you would do in your gold investment.

Buying silver coins is a good silver investment for coin collectors who may want to take hold of silver physically. The most popular of which is the Canadian Silver Maple Leaf, which contains 99.9% pure silver. Silver coins that you can add to your silver investment tools may also come as ‘fine’ or ’junk,’ which denotes older coins with lower silver percentage content such as the dimes, quarters, and fifty-cents US coins that were minted in 1964 or earlier. These usually contains 90% of silver and come in 8/10 troy ounce per US$1 face value.

You can also buy silver bullion bars as a part of your silver investment portfolio since this is the most traditional method used by many investors. These are bought and sold over the counter in major banks in Switzerland; and storage options include safety boxes or banks or you can also place them in non-fungible or pooled storage with a silver dealer. Another good silver investment option lies in opening a silver account that you can do so in major banks in Switzerland, where silver is sold or bought over-the-counter just like any foreign currency. Backed by allocated or unallocated storage, you will not own an actual silver metal but you will have a claim against the bank for a specified quantity of the metal.

Investors who want to expand their silver investment portfolio can also own a silver certificate besides buying gold coins and bars or opening a silver account. In this method, instead of storing the actual silver bullion, you will opt for ownership using the silver certificate, which eliminates the hassles of storage that comes with owning physical silver. Another silver investment option that provides an easy way of gaining exposure to the price of silver is through the Exchange-Traded Funds or ETFs. There are so many ETFs today that you can use as a trading tool in the New York Stock Exchange, which do away with the inconveniences of handling physical silver bars as well.

Entering in a Contract for Difference is an excellent silver investment vehicle since there are so many financial firms, especially in the United Kingdom, that offers these services. In this method, the buyer and seller enter into a contract where the seller agrees to pay the buyer the difference between the current value of silver and its value at the contract time; but if the difference turns out negative, the seller receives the payment. Although there is a number of ways provided for silver investment in the UK and other countries; it must be noted though that silver has lost its tender status in the US since 1967 when the US government discontinued redeeming currency for silver coins.

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