Investing in Silver for Beginners [2023] | A Comprehensive Guide

Silver has always played second fiddle to gold as a precious metal. Also known as “poor man’s gold,” silver is an excellent alternative investment for those who want to protect their wealth and beat inflation.

The silver market has been a great choice for investors due to its stability and steady price rise. This precious metal is an industrial and financial asset with significant growth potential.

How to Buy Silver for Beginners

Investing in Silver for Beginners

Silver is a favored option among investors who want to hedge against inflation. The price of this metal tends to rise when inflation is high, as this asset retains its value even in times of economic turmoil.

On top of that, physical silver coins are a cheaper alternative to other precious metals, such as gold and platinum, making them a more accessible choice for investors looking to diversify their portfolios.

  1. Silver Bullion Coins

One of the easiest ways to invest in precious metals is to buy bullion. You can purchase silver coins or bars.

While you can find precious metals at affordable prices in pawn shops, purchasing physical silver bars from reputable dealers is always smarter. Make sure to invest in silver bullion only after comparing the market price with different sellers.

  1. Junk Physical Silver Coins

Another cost-effective way to buy silver is by investing in junk silver coins containing a percentage of this metal.

Many companies sell junk silver bullion for a quarter of the current metal price. This investment option is ideal for those who want to start small with physical silver.

Is Investing in Silver Precious Metals a Good Idea?

Before diving into the world of silver, it is essential to understand the basics of precious metals. Gold, silver, platinum, and palladium are precious metals because of their rarity and unique physical properties.

You can use precious metals in many industries, from jewelry making and electronics to healthcare.

When it comes to investing in precious metals, physical silver is an excellent choice. It has been used as currency (in the form of coins) for thousands of years and has a long history of holding value even in times of economic uncertainty.

Physical silver, in particular, has many industrial uses, so it is in constant demand, which helps to stabilize its value.

However, new investors should note that silver prices fluctuate daily. It is essential to keep an eye on the silver market to make sound decisions.

Many factors affect the market price of silver, including supply and demand, the economy, geopolitical issues, and even social media trends.

Inflation erodes the value of paper currency over time, but precious metals can protect your purchasing power. Gold is often seen as the best inflation hedge, but silver is an equally good alternative investment that is often more affordable to the average investor.

Other Ways to Invest in Silver

Ways to Invest in Silver

Unlike gold, silver prices can fluctuate now and then. However, it still provides a bright future for new investors wanting to diversify their portfolios. One of the best ways to invest in silver is to buy silver coins.

You can find coin dealers in almost any pawn shop. Owning physical silver is now easier than ever, thanks to reputable online companies such as JM Bullion or APMEX.

Silver bullion coins are minted by governments and are recognized as legal tender. Currencies such as the American Silver Eagles, Canadian Silver Maples, and Australian Kangaroo coins are popular among silver investors. They are valuable due to their rarity, history, and purity.

  1. Silver Mining Stocks and Bonds

Investing in silver mining stocks is another way to gain exposure to the market. These typically include shares of silver mining companies that focus on the exploration, production, and sales of the metal.

Silver mining stocks offer potential capital gains and regular dividend payments. However, it is crucial to note that the price of silver can be more volatile with stocks. Some of the best stocks for silver mining include:

  • Fortuna Silver Mines (FSM)

  • First Majestic Silver Corp (AG)

  • Pan America Silver Corp (PAAS)

  1. Exchange-traded Funds (ETFs)

ETFs are investment funds that trade on stock exchanges, allowing investors to gain exposure to a diversified portfolio of silver-related investments. This can include physical silver holdings and silver futures contracts.

Futures contracts allow investors to purchase and sell silver for a specific price on a certain date. The following ETFs are the best in the market:

  • iShares Silver Trust (IAU) – Ideal for tracking the future price of silver.

  • Aberdeen Standard Physical Silver Shares ETF (SIVR) – Convenient for owning physical silver.

  • SPDR Silver ETF (SLV) – Useful for tracking the current and future price of silver.

With its historical significance and tangible value, investing in silver can generate returns on investment and ensure protection against economic uncertainty and currency devaluation.

Factors to Consider for Those Who Want to Invest in Silver

Investing in silver can greatly diversify your portfolio and potentially reap significant returns over time. However, like any investment, you should consider several factors before deciding to invest in this precious metal.

  • Spot Silver Prices

One of the first things to consider is the current price of silver. This can greatly impact whether or not it is a good time to invest. If the market rate is low, it may be a good time to buy this industrial metal. You can purchase more silver for your investment dollars this way.

On the other hand, selling the silver bullion might be a better idea if the silver price is high. Remember that the silver market can be volatile, so always research before purchasing or selling.

  • Choose How You Want to Buy Silver

Investing in this industrial metal is easy by purchasing bullion or coins. This can be a great way to own silver directly and benefit from rising market prices.

However, owning silver also comes with some risks, including the need for storage and the potential for loss or theft.

Also, for those who do not want to own physical silver, there are other investment options, such as silver exchange-traded funds (ETFs) and silver futures contracts. The latter method allows investors to purchase silver at a future date at a predefined price.

This can be a good option for those who want to invest in silver without owning the metal. However, like any futures contract, there is always the risk of losing money if prices fall.

  • Determine Your Personal Goals

When deciding whether or not to invest in silver, it is important to consider your overall investment goals and risk tolerance.

Silver is generally considered a relatively safe investment but is still subject to market fluctuations.

Having a clear investment strategy and researching and analyzing the market before purchasing is also important.

Updated Physical Silver Prices in 2023

Silver Prices

Despite averaging at only $21.73 per ounce near the first quarter of 2022, many forecasts pinpoint that the rising silver prices show steady growth and opportunities for investors.

As of 2023, the per-ounce price of silver has gone above $23, but it is expected to soar higher by the start of 2024. The demand for renewable energy and electric cars contributes to this bullish forecast.

Final Words

While gold has been considered the primary investment option for a long time, silver has slowly emerged as a more affordable and cheaper alternative.

Investing in silver can offer many benefits to investors in the long term. One primary benefit of this metal is its use as a hedge against economic turmoil.

Silver, like gold, is a tangible asset that holds value during long-term inflation. As the value of paper assets decreases, the demand for metals like silver increases, leading to a price rise.

The value of silver does fluctuate, as it is not as stable as gold, but it does have its benefits. Silver has many industrial applications, unlike its yellow counterpart, which is primarily used for jewelry and as a store of value.

In fact, it is used in various sectors, such as electronics, solar panels, and medical equipment. This means its worth is tied to global demand, making silver more sensitive to economic cycles and geopolitical events than gold.

However, silver has benefits that make it an attractive investment. Firstly, it has a lower entry point compared to gold, making it more accessible to new investors who may not have as much capital to work with.

In addition, silver has various investment options. From coins and bars to ETFs, there are many ways for investors to get involved in the market. These options can attract investors who prefer a more hands-on investment approach.

If you want to expand your retirement portfolio, consider betting on silver – it may be your smartest investment decision.

Frequently Asked Questions

Silver may be a great option if you want to invest in a tangible asset that offers stability and long-term value. Despite its fluctuations in the market, silver has remained a popular investment choice for many investors over the years.

Whether you want to buy the metal as part of your portfolio diversification or as a long-term investment, the following FAQ section can help you make sound decisions.

  1. Is It a Good Idea to Invest in Silver Mining Stocks?

Investing in silver mining stocks can be a great way to gain exposure to the metal market. However, you should note that silver mining stocks can be more volatile than silver futures and ETFs.

If you’re considering investing in stocks, analyze the company’s financials and understand your overall investment goals and risk tolerance first.

  1. How Much Silver Should I Add to My Retirement Portfolio?

The amount of silver you should add to your retirement portfolio will depend on your diversification goals and financial tolerance.

As with any investment, it’s important to expand your retirement portfolio and not rely solely on silver. Most financial advisors recommend allocating 10% of your portfolio to metals, including gold and silver.

On the other hand, it’s best to stick to 75% gold and 25% silver bullion for a precious metal portfolio.

  1. How Much Silver Content Do Junk Coins Have?

Junk coins, also known as pre-1965 circulated U.S. silver coins, contain approximately 90% silver. They can be a convenient and affordable way to invest in silver, as the coins are often sold in bulk and can be easily purchased from a pawn shop dealer.

  1. What Are Some Ways to Invest in Silver?

There are several ways to invest in silver, including:

  • Buying bullion/owning physical silver bars and coins.

  • Purchasing silver miners ETF.

  • Investing in silver futures or other derivative products.

It’s important to research each investment option and consult with a financial advisor before making any decisions.

  1. Will the Price of Silver Continue to Rise? 

It’s impossible to say with certainty whether the price of silver will continue to rise or fall. The market is subject to fluctuations and can be affected by a variety of factors, such as supply and demand, interest rates, and geopolitical events.

However, many experts believe the rising silver industry in 2023 presents a good opportunity for investors looking to diversify their portfolios.

  1. What Are Spot Silver Rates?

This term refers to the current industry rate of silver that reflects the metal’s price for immediate delivery or settlement.

Tim Schmidt


Tim Schmidt is an Entrepreneur who has covered retirement investing since 2012. He started IRA Investing to share his expertise in using his Self-Directed IRA for alternative investments. His views on retirement investing have been highlighted in USA Today, Business Insider, Tech Times, and more. He invested with Goldco.