How To Invest In Silver – Investing in Silver For Beginners 2021

Fact Checked by Gary McFarlane

Interested in investing in silver? We don’t blame you! It’s long been regarded as a solid long-term investment and a more affordable alternative to gold. People have been enamoured with silver for hundreds of years, its use in jewellery dates back to around 800 AD, likely due to it being easily malleable and physically appealing. In the modern world, silver has a myriad of uses, its resistance to oxidation and highly conductive nature makes it excellent for sensitive electronics, as a precious metal it’s often crafted into jewellery, and of course, silver is prized as an investment. With the prominence of technology increasing, so is the need for silver’s conductive properties, this is likely to cause an increase in demand, and therefore an increase in price. Because of this, it makes sense to invest in silver now, before it becomes less affordable in a similar fashion to gold. 

Throughout this article, you’ll find a complete step-by-step guide on how you can invest in silver, in-depth reviews of the best silver brokers, a list of pros and cons of investing in silver, and we’ll even discuss the different ways you can invest in silver today.  

#1 Broker to Buy Silver– eToro

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How to Invest in Silver – Step by Step Guide 2021

To help you get started on your investment journey, we’ve included this brief guide on exactly how you can start investing in silver. This section is perfect for anyone in a rush or just wanting a little assistance getting started. If you’re looking for a more comprehensive guide, you can find that toward the bottom of the page.

  • Step 1: Open an eToro account: Before you can make investments, you’ll need to register with a trusted broker. We recommend fully-regulated broker eToro. Simply type “eToro.com” into your browser, press “Join Now”, and fill in the required details.
  • Step 2: Verify your Identity: Because eToro is regulated, you’ll need to confirm your identity. Don’t worry, this process only takes a couple of minutes and all you’ll need is a photo ID (passport, driving license) and proof of address (bank statement, utility bill).
  • Step 3: Fund your Account: Once your account has been verified, it’s time to fund it. To do this, all you’ve got to do is click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. As a global platform, eToro supports deposits using credit/debit cards, bank transfers, and e-wallets (PayPal, Skrill, etc).
  • Step 4: Invest in Silver: Now that you’ve funded your account, you’re ready to invest! In the eToro search bar type “Silver”, click on the relevant option, press “Trade”, enter however much you’d like to invest, and press “Open Trade”.

Choose a Broker

One of the most important steps to investing is choosing the right broker for your individual needs. If you don’t take the time to perform some research on which broker is right for you, then you could be left paying high fees or without the key features, you require. In order to make this process as easy as possible for our readers, we’ve done the research for you and created in-depth reviews of the 3 best brokers you can invest in silver with.  

eToro – Overall Best  Silver Broker

One technique you can use to help you figure out if a brokerage is trusted and takes care of its customers is to first ensure they’re regulated and then make sure they have a reasonably sized user base. eToro ticks both of these boxes, they’re regulated by the FCA and currently serve over 20 million customers. While this method certainly isn’t fool proof, both of these statistics act as a solid indicator of how trustworthy a platform is.

Security & Privacy

As an investor, you don’t want to have to worry about the safety of your funds and with eToro, you don’t have to! The team at eToro has implemented several industry-leading security measures to ensure you can dedicate 100% of your time to investing! To achieve this, eToro SSL encrypts all your sensitive data, this protects your data from any nefarious individuals that may try and intercept it on the way to the eToro server. Another way eToro helps users protect their accounts is with 2FA, which gives users the option to require an SMS message to complete any important account actions. And to finish off, as we touched on, eToro is regulated by the FCA and CySEC. Therefore, they’re subject to regular audits, ensuring nothing strange is going on behind the scenes.

Features

If you’re still wondering whether eToro is right for you, we’re sure that after reading the features your mind will be made up! Beginners will feel right at home on eToro, the interface is clean and simple, resulting in a straightforward investing experience free of any unnecessary difficulty. CopyTrading is another excellent feature for those just starting out, it gives users a way to earn a passive income without much effort by automatically mirroring the trades of more experienced users. Another proprietary eToro feature is CopyPorfolios, a way users can invest in a variety of assets at once, without having to open up multiple positions or invest in an ETF. Although beginners are well looked after, don’t for a second think experienced traders have been neglected, eToro has extremely advanced charting tools perfect for technical traders. Additionally, they allow users to trade in a huge range of markets covering everything from Forex to CFDs. 

eToro Fees

Fee Type Fee Amount
Silver Spread 5 Pips
Commision Fee 0%
Deposit Fee $0
Withdrawal Fee $5
Inactivity Fee $10 (Monthly)

 

Pros

  • Regulated
  • 20-million users
  • CopyTrading
  • CopyPortfolios
  • SSL encryption
  • Huge range of tradable assets

Cons

  • MetaTrader support would take eToro to the next level for technical traders

67% of retail investor accounts lose money when trading CFDs with this provider.

Robinhood – Invest in Silver Easily

The second broker we’ll discuss is US-based Robinhood. Since its launch in 2013, Robinhood has grown to be the go-to beginner investment platform for US residents, currently serving over 13 million users. They have a clear focus on delivering a simple and effective investment platform, perfect for anyone new to the world of investments. 

Security & Privacy

When you’re providing a service for as many people as Robinhood, your security has to be top-notch, or you risk catastrophic losses for yourself and your customers. To ensure this doesn’t happen, Robinhood has implemented a heap of security features. Firstly, they’re regulated by the SEC, this provides customers with peace of mind knowing their funds won’t randomly disappear and prevents Robinhood from engaging in any nefarious activities behind the scenes. To further secure customers’ data, Robinhood has implemented a system of encrypting any data information that could be deemed sensitive. And to finish off, even if Robinhood were to get compromised, your funds are still safe. This is because Robinhood has SIPC insurance covering its users’ securities balances up to $500,000 and should you have more than that in your account, Robinhood has what they call “excess of SIPC coverage” protecting users up to the tune of $10 million.

Features

Robinhood is one of the foremost beginner investment platforms in the US, as such, it makes sense that many of their features have been implemented with beginners in mind. The first thing you’ll notice when using Robinhood is the incredibly simple and intuitive interface, it’s clear that it’s been designed to ensure beginners have an easy time navigating around the platform, Although this may be somewhat off-putting to those looking for an advanced trading platform, it’s aligned with Robinhood’s goal of making trading accessible to the masses. If you end up investing regularly, it might be worth your while registering for Robinhood Gold, Robinhood’s premium service that provides customers with access to higher margins, market research, and level 2 market data. To sum up, Robinhood is a great investment platform if you’re new to the space but maybe somewhat lacklustre if you’re looking for a fully-featured platform.

Robinhood Fees

Fee Type Amount
Trading Fee 0%
Credit/Debit Card Fee 3.99%
Spread Fee Variable

 

Pros

  • Regulated by the SEC
  • Sensitive data encrypted
  • SIPC insurance up to $500,000 
  • “Excess of SIPC coverage” up to $10 million
  • User-friendly

Cons

  • Maybe too simple for some
  • Missing several markets
  • Only available for US residents

67% of retail investor accounts lose money when trading CFDs with this provider.

Fidelity – Invest in Silver Top ETFs

If you’re looking for a more “serious” investment platform then you’ll love Fidelity. Operating since 1969 and serving more than 2.5 million clients, it’s no surprise that Fidelity has managed to create an incredibly feature-rich, refined platform. Although getting to grips with Fidelity could certainly pose a challenge for beginners, the rewards are well worth it. You can gain access to a huge amount of investment types and a wide range of markets, ensuring that regardless of your investment goals there’s something for you.

Security & Privacy

Protecting customer funds is one of the main jobs any brokerage has to undertake, there are always people looking for weak security they can exploit to make a quick buck. To prevent anything bad from happening to their customers, Fidelity utilizes some interesting techniques. To complete important account actions, Fidelity users can choose to enable Voice biometrics, a method of verifying a customer’s identity using voice recognition. Because phishing scams are increasing in frequency, Fidelity has implemented a way of sending encrypted messages to Fidelity staff, this ensures nobody trying to intercept a message could even use it. Additionally, Fidelity users can choose to enable 2FA, which will result in you needing a code to be sent to your mobile or email in order to complete important actions. All of this results in solid account security and therefore a less stressful trading experience. 

Features

After helping customers invest for over 50 years, Fidelity has got a pretty good grip on what customers are looking for. As such, they’ve done well to cater to the needs of users of all experience levels. Although that being said, if you’re completely new to investing it’ll likely take you a little while to get acclimated to the interface. However, the good news for beginners is Fidelity provides a huge amount of really solid market research, this enables you to make better-informed investments, in turn helping you make more money! When it comes to those with a bit of investment experience, Fidelity has made sure to allow users to trade in a wide range of markets and invest in a huge amount of financial products, this results in a platform that has something for everyone. On top of this, Fidelity even offers a personal financial advisor and wealth management services (although you’ll need to be a “high-value” for this service to be free).

Fidelity Fees

Fee Type Fee Amount 
Commision Fee 0%
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $0

 

Pros

  • Solid Research
  • Range of markets
  • Wealth management services
  • Global 

Cons

  • Potentially too complex for a true beginner
  • Cryptocurrency investments not available

67% of retail investor accounts lose money when trading CFDs with this provider.

Invest in Silver  – Broker Price Comparison

To help you have an easy time choosing between the best silver brokers, we’ve included this handy table so you can see how each platform compares. 

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $0 $10 monthly (after 12 months inactivity)
Robinhood $0 on trades of <50 shares. Up to $5.95 on trades over 50 shares  $0 $0 $0
Fidelity 0% $0 $0 $0

 

What are Silver Stocks? 

It’s a common misconception that people investing in precious metals have a stack of gold or silver bars stashed somewhere in the house. The reality is, that in the modern world many people prefer the convenience of online investments, it makes storage and selling far more quick and cheap. If you want to invest in silver, you’ll have to choose between buying a physical bar or investing in silver stock. To make this easier for you, we’ve included a run-down of the most popular ways to invest in silver stocks.

ETFs (Exchange Traded Funds)

An exchange-traded fund, often shortened to an ETF, is a way you can invest in a group of related assets with the press of just one button. A fund manager will bundle together a set of assets with the goal of matching the performance of a certain index, allowing investment in a portion of the fund, granting exposure to a multitude of different assets. This benefits the fund by providing liquidity and benefits the investor by providing them with a diversified portfolio, designed to provide stable gains and minimize risk. While you can receive dividend payments from an ETF, it’s important to bear in mind the fact that you won’t own any of the underlying assets. 

CFDs (Contract For Difference)

A contract for difference, commonly referred to as a CFD, is a financial instrument tailored to short-term investors or day traders. In contrast to traditional stocks or an ETF, you’re not technically investing in anything, rather simply speculating on a price change. This is beneficial for those not wanting to be tied into a certain investment. Typically, because you’ll be taking advantage of small price movements, you’ll trade a CFD using leverage. This gives you the potential to see huge gains on a small investment but is only recommended for experienced traders because it comes with the risk of losing even more than you initially invested.

Best Ways to Invest in Silver 

If you’re still wondering what is the best way to invest in silver, then read on! We’ve covered the ins and outs of the 2 most popular ways you can invest in silver. The best way will always depend on your personal investment goals, so to make it easier for you, we’ve broken down some of the key characteristics of both investment types.

Invest in Silver Bullion

The traditional way of investing in precious metals is purchasing a physical bar, typically, these bars will come in a bar weighing either an ounce, 100 grams, or a kilogram. While the idea of owning a physical bar of silver is extremely appealing and gives investors the rare opportunity to have an actual tangible investment, there are some aspects you should carefully consider before pulling the trigger. You’ll need to consider where you’re going to store the bars. Sure, for a single bar, you won’t have much issue, but if you plan on investing heavily, you’ll need something like a safety deposit box that can begin to eat into your profits.  

Invest in Silver Stocks/CFDs/ETFs

A much more liquid way of purchasing silver is by investing in a silver stock/CFD/ETF. This method of investing makes it far easier to frequently buy and sell your silver because you don’t have to physically travel to a broker and negotiate on price, instead you can simply create a sell order for a predetermined price and have access to your funds near instantly. Additionally, by investing in silver stocks, you do away with the issue of storage, meaning it can actually end up being cheaper to buy a silver stock vs bullion.

Is Silver a good investment? 

Silver is currently up over 500% since 2002, a stark contrast to the price of the dollar, which today is only worth around 66% of its value in 2002. The statistics don’t lie, silver acts as a fairly stable store of value especially versus traditional currency. And with the price of silver still being well below its 2011 highs, 2021 could be the perfect year to get your foot in the door. 

Used in a Diverse Range of Industries

If you’ve ever taken an economics class, you will likely have heard the term “supply and demand” thrown around in excess. This, however, is for good reason, supply and demand drive the price of everything. And the demand for silver is steadily increasing, current prices could only be a fraction of silver’s potential. Of course, we make jewelry and utensils using silver, but its use in technology is only increasing. Silver is the most conductive metal on earth and is resistant to oxidation. This makes it the perfect choice for sensitive electronics. As we continue to use an increasing amount of electronics it stands to reason that the demand and therefore the price of silver is set to increase. 

Tangible

An ever-increasing number of investments are in-tangible, meaning you can’t physically touch them, look at stocks as an example. For many, this doesn’t matter, as long as you’re making money why would you care? But tangible assets do certainly have their place, if an issue occurs with a stock exchange you could potentially lose your investment. However, you’ll always have a  tangible asset like silver, making it an excellent way to store wealth if you’re not a fan of the stock market.

Investing in Silver – What are the Risks

I would argue that not a single investment comes without its own set of risks and although silver is considered fairly safe, it’s no exception to this rule. Before making an investment, you should always weigh the pros against the cons in order to make sure the investment is right for you. 

Outperformed by Other Assets

Although the figure we mentioned earlier (500% increase since 2002) is certainly impressive if we take a look at the performance of other investments over the same period one thing becomes clear, silver gets outperformed by the majority of other assets. For example, in 2002, a $1000 investment in Amazon would be worth almost $250,000 today, an increase by a factor of 250. 

Storage Costs

Although this can be negated by investing in silver stocks, many investors still prefer physical silver, so it needs to be discussed. If you want to invest in physical silver, you will have to cough up money for storage. Unfortunately, silver is far bulkier than some other precious metals, it’s worth less and therefore will need more room to store an equivalent amount. If your storage costs are based on the amount of room you need, things can quickly get out of hand. Therefore, it’s best to take these costs into consideration and weigh them against the amount of growth you expect.

 

How to Invest in Silver with eToro

If you’re still looking for an answer to the question “how to invest in silver”, then this section is for you! We’ve created this guide to help make your first investment with top-rated broker eToro. Just follow along with the steps and you’ll be investing in just a few short minutes.

Step 1: Open an account with eToro

The first thing you’ll need to do is navigate over to eToro’s website. To do this simply type ‘eToro.com” into your browser’s search bar, press “Join Now” and fill in the required information. Don’t worry, all your data is protected using SSL encryption.

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Verify your account

eToro is a regulated investment platform, this means that you’ll need to verify your identity. This is standard practice in the finance industry and every reputable broker will require you to go through this process. All you’ll need to provide is a photo ID (passport, driving license) and proof of address (bank statement, utility bill).

Step 3: Fund your account

Once your account has been verified, you’re only one step away from investing in silver. All that’s left is to fund your account. To do this just click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro supports a range of payment methods, you can deposit using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill, etc).

Step 4: Buy some Silver!

Now that you’ve funded your eToro account you’re ready to invest! Just type “silver” into the eToro search bar, select the relevant option, press trade, enter the amount you’d like to invest, and press “Open Trade”. After doing this, your account will automatically be credited and you can view your investment from the portfolio section of your account.

Conclusion

In summary, silver is a solid investment that has stood the test of time for hundreds of years and is likely to continue doing so. It’s used in a huge range of industries and with our increased reliance on technology, the demand for silver is likely to continue to increase. Therefore, it makes sense that investors want to get in on the action before silver starts catching up to the price of other precious metals and becomes far less affordable. If you want to make an investment in silver we recommend doing it with regulated broker eToro, they offer users the lowest fees, best security, and most robust feature set out of any of the platforms we’ve reviewed. Well, there we have it, you’ve reached the end of our guide on how to invest in silver, we hope you learned something! If you’ve got any more questions you might find the answer in our FAQ section below. 

Best Platform to Invest in Silver – eToro

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$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

FAQs

What is a Stock?

What is a Silver ETF?

Where can I buy Silver bullion?

Silver Bullion vs Stocks

What’s the Best Silver Broker?

 

About Jay Leonard PRO INVESTOR

Jay is a UK based cryptocurrency expert, specialising in fundamental analysis and medium to long term investments. He has a great deal of hands on experience in the space and a current focus on institutional adoption.