1.Buy physical silver – this is the preferred method of silver investing because you have no counterparty risk. The difficulty to take into account is the storage of the metal: not only do you need to store it safely, but the quantity can become an issue when buying larger amounts of silver. Physical silver is usually bought in the form of silver bars.
2.Silver coins – as long as you stick to the widely accepted silver coins, you are fine. Examples of the most traded coins are the American Eagle, Austrian Philharmonica, the Canadian Maple Leaf, or the Mexican Libertad. Premiums on some of these coins, but mainly the more unique ones, are usually higher than silver bars.
3.Perth Mint – this 100-year-old mint is the only government-backed bullion storage facility in the world. It’s located in Western Australia and it fully guarantees your account and physical silver ownership. You pay a service and administrative fee, but storage of your silver is for free. You can order the metal for physical possession. This is a good option when you are afraid your country could confiscate silver investments.
4.Vaulted silver – with the advent of the Internet, you can easily buy your silver online and have it stored for you in special secure vaults. When buying vaulted silver, the service provider usually holds silver bars for you. This silver investing option is somewhat related to the previous one, but it is using much more of the Internet and you can easily trade. The most known service providers are GoldMoney.com and BullionVault.com.
5.Silver stocks – shares of gold and silver mining companies is a much more risky way to profit from the precious metals bull market. It requires thorough analysis. Some mining companies will grow in value over the coming years, as they have the silver in the ground. But be careful, not all of them will have the same bright future. Professional advice is recommended when investing in silver stocks.
6.Silver Exchange Traded Funds (ETF’s) – you can buy easily those financial instruments on the stock exchanges. They usually track the silver price. We don’t love them as they are not always backed with physical silver (you could run a serious risk in case of a collapse of the financial system).