Once an individual decides to invest in silver, the next choice is in what form. The precious metal is attainable through sources like exchange traded funds, mutual funds, stocks, coins, jewelry, and bullion. Though the market for this metal has experienced a decade-long bull run, some investment vehicles are more profitable than others.
The best way to buy silver is in a form that offers direct exposure to the precious metal. Therefore, bullion would be the wisest investment. Though the most profit may be made when selling bullion, there are the issues of insurance and storage. Depending on the amount held, it may not be feasible to store bullion at home and insurance costs may be prohibitive.
Another smart way to invest in the metal is to purchase investment-grade coins. These contain bullion in coin form and are different than collector-grade coins. The Canadian Silver Maple Leaf is one example of a coin used for investment. When coins are held, it is better to view them as safe haven assets in the event of economic collapse than a way to make profit.
Rounds are .999 fine silver and can also be used as a store of value. Many mints produce rounds that contain one troy ounce of the precious metal but are not considered legal tender. Investors can order rounds with custom designs imprinted on their faces or in batches containing assorted designs.
Jewelry made from the precious metal is another wise investment. Individuals should research the quality of a piece before purchasing it. Exchange traded funds provide investors with exposure to the price of the precious metal but often do not convey ownership of it. One of the largest ETFs dealing in the metal is the iShares Silver Trust. This fund has more than 340 troy ounces of the metal in storage.
How to Beat Inflation
Silver prices have been exploding for the last few years. We'll show you exactly what the live silver prices are, what to expect from the silver market, and how to invest in silver.
We're now offering our newsletter for free to the public. Sign up below to learn what the "real" inflation rate is, how I'm personally investing in silver.