How to buy silver: A guide for investors

Savvy investors often step outside the comfort zone of conventional investments — e.g., stocks, bonds, and mutual funds — and into more exotic, hard assets like silver. While there can be risks to investing in commodities like silver and other precious metals, there can also be benefits to diversifying your portfolio.

But how do you invest in silver, anyway? Do you have to contact a jeweler? Is there a way to buy silver online?

While there can be some complexity when it comes to figuring out how to get silver, and moreover, the best place to buy silver, the good news is that there are multiple ways to invest in this asset, depending on your situation and preferences.

Here's what interested investors should know.

Why invest in silver? 

Some of the top potential benefits of investing in silver include:

Hedge against inflation 

Silver can serve as a good hedge against inflation. As a physical commodity, it has some intrinsic value. The metal is used in many different consumer goods, and the demand for these goods can increase as the economy expands. And if prices for consumer goods also go up in an inflationary environment, then the price paid for the silver in these goods might also increase, thereby counteracting inflation for the investor.

That said, the intrinsic value of silver doesn't necessarily line up with its price, but it can still be a hedge against inflation, such as if investors buy more silver because they see it as a safe store of value during periods of uncertainty triggered by inflation.

Portfolio diversification 

Like other alternative investments, silver often performs in an uncorrelated way to traditional securities like stocks. In an economic downturn, for example, stocks across sectors might fall, while silver's price might rise. So it can be a great way to diversify a portfolio. That said, the flip side of diversification is also that silver might lose value or underperform during periods when other assets are on the rise.

Industrial demand 

Industrial demand for silver has been on the rise in recent years, reaching record levels in 2024, the fourth straight record year, according to the Silver Institute. This demand can help fuel growth in silver's value, even outside of an inflationary environment. Some examples of industrial uses include silver being used in the creation of power grids and the growing use of green-related technologies, including solar panels, along with AI in consumer electronics, all of which have helped boost industrial silver demand.

Safe-haven asset 

Given its inherent worth, some investors believe silver will retain its value during times of crisis. As a result, they perceive it as a safe haven against political and economic turmoil, similar to its more glamorous cousin, gold.

Silver clearly offers many perks as a potential investment.

All these factors have precious metal experts like Giancarlo Camerana, a strategic advisor at QORE Switzerland, feeling optimistic about the performance of silver in the coming decade. What it comes down to, he says, is "a combination of bullish factors: increased demand from both the industrial sector and financial investors as they worry about the ongoing currency debasement and the possible dollar devaluation."

Different ways to buy silver 

The best way to buy silver depends on your preferences and factors, such as whether you have a place to store silver coins or bars. But the good news is that you typically have several options, such as:

Physical silver 

Bullion: The physical metal is known as bullion. Investment-grade bullion typically refers to silver that's 99.9% pure. It comes in a few different forms, such as bars, which consist of solid silver weighed by the troy ounce that's been poured or pressed into stamped blocks. They're available for purchase from reputable metals dealers. If you're starting here, consider investing in smaller ounce-counts, as they'll be easier to sell off if need be.

One way that investors can obtain silver bullion is by purchasing silver rounds, which are round objects similar to coins but are not legal tender. Private mints create these rounds.

Precious metals dealers generally offer bullion in its various forms. Be sure to look for a well-established one: JM Bullion, APMEX, and SD Bullion are among the most reputable. Many banks also sell silver bullion.

Coins: Another subset of bullion is coins, and these might be a good entry point if you're considering how to invest in silver, considering their widespread availability. The United States Mint, for example, offers American Eagle coins that are one-ounce silver coins. Interested parties can purchase an American Eagle 2025 One Ounce Silver Proof Coin for $95 at the time of this writing.

Alternatively, investors can buy Maple Leaf bullion coins from the Royal Canadian Mint. This mint offers precious metals storage solutions to investors, but only for business-to-business accounts, not individuals.

These coins can potentially be sold at a significant premium, which is the cost over and above the spot (market) price, because they're generally considered collectibles, in addition to being silver investments. Still, investors who are interested in these collectibles or other types of physical silver should perform thorough due diligence, as prices can be volatile and vary significantly among dealers.

Silver ETFs 

While some investors prefer to buy physical silver, the complexity of transporting and storing silver, not to mention the cost, can be a barrier. So, a good way that investors can efficiently gain exposure to silver is by purchasing exchange-traded funds (ETFs). Investing in silver ETFs can grant you quick exposure to the precious metal, and there are many different options available.

There are ETFs that are based on physical silver, for example, allowing investors to own a slice of a trust that owns silver bullion. There are also ETFs that invest in silver mining companies (among other areas of mining perhaps), and also funds that are tied to futures contracts for silver.

ETFs give investors an easy way to gain exposure to the raw material, and they can be purchased through brokers and held in brokerage accounts or retirement accounts. Because silver ETFs trade on exchanges much like stocks, they're often highly liquid, and you can get in and out of these investments usually much faster and with fewer fees than with physical silver.

Leading silver ETFs and what they invest in

Here is a list of some popular silver ETFs, as well as how they give investors exposure to the metal.

• iShares Silver Trust (SLV): physical silver
• Global X Silver Miners (SIL): silver mining stocks
• Aberdeen Standard Physical Silver Shares ETF (SIVR): physical silver
• iShares MSCI Global Silver and Metals Miners ETF (SLVP): silver mining stocks
• Invesco DB Precious Metals Fund (DBP): silver and gold futures

Silver mining stocks 

As mentioned, some silver ETFs invest in silver mining stocks. But you could also buy these stocks individually. Silver mining stocks offer indirect exposure to the metal by offering ownership in companies responsible for its extraction. If the price of silver goes up, these mining companies stand to profit more.

That said, there are many variables besides the price of silver that affect mining stocks, such as labor costs and regulation. And it's possible that a well-run mining company has stronger returns than silver itself, for example.

Note, however, that many mining companies mine multiple metals, not just silver. So, be sure to understand what you're exposed to if investing in these stocks.

Silver futures and options 

Futures and options are derivatives contracts that investors can use to gain exposure to many different assets, including commodities like silver. A futures contract obligates two parties to make an exchange at a specific point in time, for example, a certain amount of silver for a predetermined amount of money.

An options contract gives the contract holder the right, but not the obligation, to buy or sell an underlying asset (like silver) for a predetermined price during a specified timeframe.

Investing in these derivatives essentially allows you to speculate on price movements in silver, and there's usually a higher risk/reward than these other types of buy-and-hold types of silver investing. That's because futures and options have a time component and involve leverage.

So, you might be correct that the long-term price of silver will go up, for example, but you might be wrong about how much it will go up over, say, the next year. That might mean the price never reaches the point where your futures or options contracts gain value. With options, you could even lose your full investment if it expires out of the money.

Silver investing factors

While there are many potential benefits for investing in silver, the decision regarding how much to invest and whether you want to invest in silver-related stocks vs. silver coins, for example, depends on factors such as:

Investment goals 

The first step in formulating a well-prepared investment plan is determining your goals. Are you planning for retirement? Do you want to hedge risk? Alternatively, are you hoping to generate some quick returns through speculation?

These goals can influence how to get silver. For example, if your goal is to maximize potential gains and you're willing to take on more risk, you might invest in silver futures or options.

Risk tolerance 

Connected to investment goals is your willingness to incur risk. There are many different ways to invest in silver, and they come with varying levels of risk. The riskiest route would likely involve options and futures, as these can generate sharp losses if your timing is wrong.

Investing in silver bullion or ETFs that are based on physical silver would likely be a less risky option, as this is a more direct investment that you can buy and hold. Even if the price of silver dips, you might be able to wait it out and hold for potential long-term gains.

Diversified silver investing can also reduce risk. For example, you might invest in an ETF of silver mining companies that also includes companies involved in mining other precious metals. That way, if gold outpaces silver, for example, you can still enjoy some of that upside.

Storage and security 

If you have silver bullion, you should store it in a place that is both cool and dry so it can maintain its quality. However, storage and security can add complexity and cost, whether you do it yourself or hire a depository to store it for you. Alternatively, if you purchase silver ETFs or shares of silver stocks, you won't have to worry about storage at all, as that is handled by third parties.

So, that can influence your choice of how to buy silver stock or how to buy silver coins or bars.

Cost and fees

Any kind of silver investment is going to come with fees and expenses, beyond just storage and security costs. For example, if you buy an ETF or a stock, you might pay a commission to your brokerage for the trade, and ETFs generally carry annual management fees. Or, if you buy physical silver, you'll essentially always pay a premium over the spot price of silver that depends on factors such as manufacturing costs, retailer margins, and collectible coins might involve even higher premiums for their rarity.

That said, you might find someone trying to quickly sell silver who prices it below the spot price. Factoring these costs into your investment is important so that you can more accurately compare the risk/reward vs. investing in other assets.

Where to buy silver 

There are many places to buy silver, such as physical stores or online shops. The best place to buy silver depends on your preferences and factors such as costs. Some options include:

Local dealers and pawn shops 

Local silver dealers, such as some jewelry stores or coin stores, as well as pawn shops, can be a good way to buy silver bullion if you want to see the coins or bars in person. You can also avoid shipping fees, but prices might be higher than online options due to the retailer's overhead costs. Places like pawn shops might present opportunities as they give you the ability to potentially negotiate for lower prices when buying.

However, it is important to keep in mind that purchasing silver in this way will often not have the same transparency as obtaining the metal from reputable online sources.

Online dealers 

Online dealers can offer a wide selection, presenting you with many different possible choices and easy shopping. While you might have to pay for shipping fees, you might get a better deal in terms of paying close to the spot price, as they might have lower overhead costs. So, online dealers might be the best place to buy silver bars, because if you're buying large amounts, even small differences in price can quickly add up.

Still, be sure to compare full costs and consider reviews to make sure you're working with an established organization. APMEX and JM Bullion, for example, have built up solid reputations.

Brokerage accounts 

Another option in terms of how to buy silver online is to invest in silver-related stocks and ETFs through brokerage accounts the same way you would buy other securities. There are many different options out there, ranging from full-service brokerages to discount brokerages that will allow you to make trades with lower expenses.

To do this, you need to choose a brokerage, set up an account, fund it, and then make purchases.

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