If you're looking to actually own silver, buying physical bullion is the most popular way to do so.
However, if you're just looking to get exposure to the price of silver, a silver ETF might be the most convenient and cost-effective option.
1. Buy physical silver
The most traditional way to invest in silver is by buying physical silver in the form of bullion, bars, coins or other forms.
Buying physical silver is the only way to invest in the tangible asset itself.
You can buy physical silver online or through silver dealers, or by buying silver jewellery.
When buying silver bullion, it's important to remember that you are purchasing by weight regardless of whether it's in the form of a bar, a coin or anything else.
"Bullion" refers to high-purity silver that is officially recognised as being at least 99.5% pure silver.
More collectible forms such as commemorative silver coins will often be much more expensive per gram than silver bars, so check how much you're paying by weight before buying silver.
Pros
It's the only way to get actual ownership of silver
Physical silver is far cheaper than physical gold so you can get started for less
Over the long-term, silver generally delivers inflation-beating returns
Physical silver can sell at a premium compared to the spot market
Cons
You have to store the silver somewhere
Security risks – you lose your investment if it gets stolen
2. Buy silver shares
One common way to invest in silver is via the stock market, such as the Australian Securities Exchange (ASX).
When you buy shares in a silver mining or silver-related company, you're indirectly betting on the value of silver increasing over time.
However, while silver stocks may typically rise in value as the price of silver increases, this isn't guaranteed.
The main difference between investing in physical silver and stocks in the silver industry is you're exposed to the same risks that come with buying into any company, such as bankruptcy, poor performance and general stock market volatility.
By that same token, there can be additional benefits such as dividends or potential higher returns.
Valuable metals can be especially volatile and prices may vary wildly for no real reason
What are the best ASX silver stocks?
In Australia, there are more than a dozen listed companies engaged in silver mining. Here are 7 of the top silver stocks based on performance over the last 5 years1:
Andean Silver Ltd (ASX: ASL) - 392.31%
Polymetals Resources (ASX: POL) - 305.88%
Adriatic Metals PLC (ASX: ADT) - 297.62%
Investigator Resources (ASX: IVR) - 120.00%
Sun Silver Limited (ASX: SS1) - 72.00%
Unico Silver Limited (ASX: USL) - 63.16%
Argent Minerals Limited (ASX: ARD) - 42.11%
This data was last updated on 5 November 2024 and is based on the price performance of dedicated silver companies.
3. Invest in silver ETFs
Investing in a silver-themed ETF is arguably the easiest way to get exposure to the price of silver without having to buy physical silver.
ETFs are investment funds that track the price of an underlying market, sector or asset. They are traded on stock markets in the same way as regular shares.
Some silver ETFs simply track the silver spot market price, while others track an index of companies in the silver mining industry, or a combination of the 2.
This makes ETFs an easy and flexible way of adding silver to your portfolio.
There is currently only one (ETF that tracks the price of silver on the ASX, the Global X Physical Silver (ASX: ETPMAG) ETF. It has returned 71.80% over the last 5 years1.
There are a few ETFs that track the performance of mining and resources companies (including silver mining companies) on the ASX, including the Betashares Australia Resources Sector (QRE) ETF and SPDR S&P/ASX 200 Resources Fund (OZR) ETF.
Pros
A quick, easy and flexible way of buying, selling and trading silver
Gain far-reaching access to silver assets at reasonable prices
Can be safer than buying individual stocks
Cons
Can incur management fees, trading fees and other expenses
We currently don't have a partnership for that product, but we have other similar offers to choose from (how we picked these
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Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
4. Trade silver futures or options
Silver futures are a way to speculate on the future price of silver. When you buy silver futures, you are agreeing to buy an asset at a future set price.
In other words, you are agreeing to pay today's prices for an asset that gets delivered sometime in the future.
This means the difference between the price you paid for an asset and its price at the time of delivery will determine whether you make or lose money.
This system also lets traders speculate on falling prices. If a trader thinks prices will drop, they can also buy a "short contract". This means they put in an order to sell the asset at today's prices for delivery in the future.
Now, if prices drop between the time the short contract was purchased and the contract expiry date, the trader would potentially make money. If prices rise, they would lose money.
With traditional futures trading, you're dealing with physical commodities. Typically only professional traders buy and sell contracts over the futures market.
Retail traders in Australia typically trade silver futures through contracts for difference (CFDs). CFDs are derivative investment products that allow you to trade on the future prices of underlying assets such as commodities, stocks and indices.
Because they allow you to trade using borrowed funds (leverage), they can be highly risky and are only for more experienced traders.
Pros
Under the right conditions, futures can yield solid rewards for their investors
Futures and options can be used to day trade and make longer-term investments
Can speculate on the price of silver going up or down
Cons
Futures markets are incredibly risky and should only be used by sophisticated investors
With leverage, you can lose more than your initial investment
Markets don't always behave the way you would expect
Compare CFD broker to trade silver futures
Disclaimer: General information only. All forms of investments (and in particular, trading CFDs, commodities and forex) carry significant risk, including the risk of losing more than the invested amounts, market volatility and liquidity risks. Past performance is no guarantee of future results. Such activities are not suitable for most investors.
Trading CFDs and forex on leverage is high-risk and you could lose more than your initial investment. It may not be suitable for every investor. Refer to the provider’s PDS and consider the risks before trading.
How has the price of silver performed over time?
Silver has been a relatively volatile asset since the early 1970s.2
Between 1978 and 1980, it rose dramatically from around US$4 an ounce to over US$45, before quickly crashing back in the early 1980s.
After years of little price movement, it then wasn't until 2011 that it finally set a new all-time high of around US$49.
It has had a similarly volatile time since then, especially in the years following the Covid crash, but crossed the US$30 mark for the first time since 2013 in 2024.
Why do people invest in silver?
There are 2 main ways people think about silver's value as an investment.
One is as a practical and in-demand commodity whose properties give it many practical applications, similar to zinc or aluminium.
The other is as a precious metal with a finite supply and inherent "folk value" similar to gold.
Silver prices are based on a combination of these 2 factors, which gives it a unique investment profile.
Silver as an industrial commodity
Silver's chemical and physical properties, such as its conductivity and antibacterial properties, make it essential for electronics, healthcare and other applications.
It's also malleable, ductile, reflective, relatively corrosion-resistant and not overly common, which historically made it a practical choice of metal for jewellery, coins and similar applications.
These also formed a practical foundation for silver's status as a precious metal.
Silver as a precious metal
Silver's (and gold's) innate value as a precious metal is typically described in the context of its finite supply or scarcity.
It's not certain how much silver is left in the world, but some estimates suggest that Earth will run out of silver by 2050. However, these estimates depend on a range of assumptions around silver's continued use, how much we recycle and how likely miners are to uncover large previously unknown sources of silver.
One economic theory holds that a commodity such as silver, which is in constant demand while having a finite supply, should carry a constantly growing intrinsic value.
Proponents of this theory will often contrast the scarcity of silver with the theoretically infinite amount of government money, such as Australian dollars, that can enter circulation.
For this reason, silver is often regarded as a hedge against inflation and currency devaluation. Its prices have been known to run opposite to the changing values of currencies.
Is silver a safe investment?
As mentioned above, silver is a staple material for many modern industries and there are a number of routes available for investing in it. However, regardless of which way you approach it, your investment will inevitably come with risks:
Fluctuating prices: Valuable metals have a tendency to fluctuate in price over small periods, sometimes with no real cause.
Storage: Finding somewhere to store physical silver can be a hassle, and storing it with a broker will come with a fee.
Fraud: While it is tempting to look for the best prices, if it's too good to be true, it probably is. When buying physical silver, trade with reputable dealers to avoid being fleeced.
Political and environmental events: Political and environmental issues can make the mining, refining and trading process more expensive for companies, causing price fluctuations.
Silver has a number of properties that appeal to investors. It can offer protection during volatile markets and it's a tangible asset. You can start investing in silver for a lot less than you can in gold and it has a long history as a financial asset.
Silver can be found all over the world, with some of the largest mines in Australia, Mexico and Bolivia. It is extracted from ore veins and refined before being distributed.
Important information: Powered by Finder.com.au. This information is general in nature and is no substitute for professional advice. It does not take into account your personal situation. This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for most investors. You do not own or have any interest in the underlying asset. Capital is at risk, including the risk of losing more than the amount originally put in, market volatility and liquidity risks. Past performance is no guarantee of future results. Tax on profits may apply. Consider the Product Disclosure Statement and Target Market Determination for the product on the provider's website. Consider your own circumstances, including whether you can afford to take the high risk of losing your money and possess the relevant experience and knowledge. We recommend that you obtain independent advice from a suitably licensed financial advisor before making any trades.
Tom Stelzer is a publisher and writer for Finder, covering investing and cryptocurrency.
He previously worked for Finder as a writer in Australia and the UK, covering things like personal finance, loans, investing, insurance as well as small business and business loans.
He has a Master of Media Arts and Production and Bachelor of Communications in Journalism from the University of Technology Sydney. See full bio
Re – bullion silver 1 kg bars marked ‘CITY MINT VICTORIA’ was this a vintage mint and if so what is it called now?
Thank you
Finder
KylieJuly 4, 2023Finder
Hi David, I’m afraid I can’t help with this one. If you have such a coin I would contact a coin appraiser who may have the knowledge you seek.
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Re – bullion silver 1 kg bars marked ‘CITY MINT VICTORIA’ was this a vintage mint and if so what is it called now?
Thank you
Hi David, I’m afraid I can’t help with this one. If you have such a coin I would contact a coin appraiser who may have the knowledge you seek.