How to invest in silver in Australia

The beginner's guide to becoming a silver bug.

Like gold, silver has been a valuable commodity for hundreds of years and is now seen as a safe haven during volatile markets.

In uncertain economic environments like we have today, investors often turn to precious metals like silver as a hedge against inflation.

Silver has remained valuable in part due to its inherent malleability.

How to invest in silver

There are 4 main ways you can invest in silver from Australia:

  1. Buy physical silver
  2. Invest in silver stocks
  3. Buy silver exchange-traded funds (ETFs)
  4. Trade silver via the futures market

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.

You can invest in silver stocks by signing up with a share trading platform.

Pros
  • Control over your investment
  • Leave the market when you want
  • You might get dividends
Cons
  • Stocks are vulnerable to market fluctuations
  • 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:

  1. Andean Silver Ltd (ASX: ASL) - 392.31%
  2. Polymetals Resources (ASX: POL) - 305.88%
  3. Adriatic Metals PLC (ASX: ADT) - 297.62%
  4. Investigator Resources (ASX: IVR) - 120.00%
  5. Sun Silver Limited (ASX: SS1) - 72.00%
  6. Unico Silver Limited (ASX: USL) - 63.16%
  7. 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.

In order to buy silver ETFs, you'll need to sign up for an account with a share trading platform.

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
  • You do not take any personal custody of silver

Find a platform for trading silver stocks or ETFs

Name Product AUFST Price per trade Inactivity fee Asset class International
eToro
Exclusive
eToro logo
US$2
US$10 per month if there’s been no log-in for 12 months
ASX shares, Global shares, US shares, ETFs
Yes
Exclusive: Get 12 months of investment tracking app Delta PRO for free when you fund your eToro account. T&Cs apply.
Trade stocks, commodities and currencies from the one account and get access to social trading.
Tiger Brokers
Finder AwardExclusive
Tiger Brokers logo
US$1.99
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Yes
Finder exclusive: Get 10 no-brokerage US or ASX trades in the first 180 days, plus US$30 NVDA shares (+US$30 TSLA shares ) when you deposit AU$2000 or more. Get 7% p.a. on uninvested cash for 30 days. T&Cs apply.
Trade US, Asian and CHESS-sponsored ASX stocks and US options.
CMC Invest
Finder AwardExclusive
CMC Invest logo
$0
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Yes
Finder exclusive: Get $100 trading credit when you transfer $10k+ of either Australian or international stocks to CMC Invest. Only available for the first 50 new clients to participate. Use promo code “100CMC”. T&Cs apply.
Trade over 45,000 shares and ETFs from Australia and 15 major global markets. Plus, buy Aussie shares or ETFs for $0 brokerage up to $1,000 (First buy order of each security, each day - excludes margin loan settled trades).
Moomoo logo
US$0.99
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Yes
Finder exclusive: Unlock up to AUD$4,000 AND US$4,000 in $0 brokerage over 60 days. T&Cs apply.
Trade US, Asian and CHESS-sponsored ASX stocks and get access to social trading
Superhero logo
$2
$0
ASX shares, US shares, ETFs
Yes
Sign up with code ‘finder24’ and get US$10 of Nvidia stock when you fund your account with $100 or more within 30 days. T&Cs apply.
Enjoy US$2 brokerage (other fees may apply) on US stocks and buying ETFs as well as $2 fee to trade Australian shares up to $20,000.
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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.
Product AUFSA-CFD Minimum Opening Deposit Minimum Opening Deposit Commission - ASX 200 Shares Available CFD markets Platforms
Pepperstone CFD
Finder Award
Pepperstone logo
$0
$0
$5 or 0.07%
Australian Stocks, Commodity CFDs, Cryptocurrency CFDs, ETFs, Forex, Global Stocks, Indices (CFDs only)
MetaTrader 4
MetaTrader 5
cTrader
TradingView
Pepperstone Trading Platform
Disclaimer: CFD Service. Your capital is at risk.
Get access to more than 90 forex and CFD markets when you sign up with this award-winning Australian broker. Plus, access the new advanced TradingView charts platform.
$50
$50
No commission
Commodities, Cryptocurrencies, ETFs, Forex, Global Stocks, Indices (CFDs only)
MetaTrader 4
MetaTrader 5
TradingView
Disclaimer: CFD Service. Your capital is at risk.
Vantage has some of the lowest CFD trading fees in Australia including $0 commissions on all Gold trades. Plus you can find global trends and place trades through the new TradingView charts platform.
$100
$100
No commission
Commodities, Cryptocurrencies, ETFs, Forex, Global Stocks, Indices, Options (CFDs only)
Plus500 Trading Platform
Disclaimer: CFD service. Your capital is at risk.
Trade CFDs on Australian and International shares, indices, cryptocurrencies, commodities and more.
$50
$50
No commission
Australian Stocks, Bonds, Commodities, Cryptocurrencies, ETFs, Forex, Global Stocks, Indices, Metals (CFDs only)
MetaTrader 4
MetaTrader 5
Disclaimer: CFD Service. Your capital is at risk. Trade over 2,000 products across CFDs, forex, indices, metals, shares, commodities and cryptocurrency, starting from as low as $50 a trade.
CMC Markets
Finder Award
CMC Markets logo
$0
$0
0.10% with a $7 minimum
Australian Stocks, Bonds, Commodities, Cryptocurrencies, Forex, Global Stocks, Indices (CFDs only)
CMC Next Generation, MetaTrader 4
Disclaimer: CFD Service. Your capital is at risk.
Share CFD and forex ideas with other traders and take your strategy to the next level with over 115 technical indicators and charts on CMC’s mobile-friendly Next Generation platform.
loading

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.

Frequently asked questions

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.
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To make sure you get accurate and helpful information, this guide has been edited by Joselle Delos Reyes as part of our fact-checking process.
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Written by

Publisher

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

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2 Responses

    Default Gravatar
    DavidJune 20, 2023

    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

      AvatarFinder
      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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