How to Invest in Silver UK – Invest in Silver Today!

Fact Checked by Gary McFarlane

Irrelevant to whether you are looking to invest in silver to diversify your portfolio or to hedge against inflation  – a reputable brokerage is essential. It’s easy to access this useful metal and there are multiple routes you can take to achieve this, such as via stocks, ETFs, and CFDs.

Today we reveal how to invest in silver in the UK, and review the best FCA-regulated platforms that can facilitate your trade in less than 10 minutes.

#1 Broker to Invest in Silver UK – eToro

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How To Invest in Silver UK – Choose a Broker

As you learn the finer details of how to invest in silver in the UK, you will see that there are various ways to do so, all of which require an online broker. We review the best platforms later, but you can see an overview of our findings in brief below.

  • eToro – Overall Best Place to Invest in Silver UK
  • Capital.com – Trade Silver Stocks and ETFs With Leverage at 0% Commission
  • AvaTrade – Credible Broker to Trade Silver with Leverage

The long and short of it is that you can invest in silver from home by creating an account at a brokerage that lists commodities. If you’ve never done this before, you can follow the quick guide below.

How to Invest in Silver UK – A Quick Guide For 2021

To keep costs down when you invest in silver in the UK, you can sign up with FCA-regulated broker eToro, in five simple steps.

  • Step 1: Open an Account with eToroCreate an account at eToro by entering your name, telephone number, and email address. Add your chosen username and password to proceed to the next step
  • Step 2: Upload Your ID – Signing up with an FCA-regulated online broker will include uploading some documentation. This enables the platform to validate your ID and address. To complete the KYC process, eToro will accept a driving license or passport for your ID, and a utility bill or bank statement for proof of address
  • Step 3: Deposit Funds – To invest in Silver, you will need to make a deposit, adhering to the minimum of $50 (around £36). eToro supports many payment types, such as debit/credit cards, e-wallets inclusive of PayPal, and bank transfers
  • Step 4: Search for Silver – There are numerous silver markets at eToro. If you know which market you want to invest in, type it in the search box. If you wish to browse what eToro offers, click ‘Discover’ to view all silver instruments.
  • Step 5: Invest in Silver – When the order box of your chosen silver market appears, you can enter the details of the purchase. Simply state the amount you want to risk on your position and confirm all by pressing ‘Open Trade’

Note that FCA-regulated investment platform eToro offers silver-related stocks and ETFs with 0% commission and will also cover the stamp duty fee of 0.5%. As such, you can invest in silver in an inexpensive and secure manner.

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

Where to Invest in Silver UK  – Full Broker Reviews

Educating yourself on how to invest in silver in the UK isn’t too taxing. Finding a safe environment to do so can be a different story.

As such, to save you some time and confusion, look over our full reviews on the best brokers to facilitate your exposure to silver. Each platform is regulated and offers competitive trading fees.

1. eToro – Overall Best Place to Invest in Silver UK

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eToro operates a multi-regulated platform and is covered by the FSCS (Financial Services Compensation Scheme). The regulatory bodies that license the space include the FCA, SEC, CySEC, and ASIC. You can invest in silver at this brokerage easily and in numerous ways. Moreover, the platform is designed to be simple but functional, so you should find it easy to navigate when searching for commodities, stocks, and ETFs.

To gain exposure to this commodity, you can invest in stocks such as First Majestic Silver Corp (AG) or Pan American Silver Corp (PAAS). Both of which mine, explore, and develop silver. eToro also lists ETFs such as the Sprott Physical Silver Trust (PSLV), and the iShares Silver Trust (SLV). The latter is the biggest silver mining fund in the world.

etoro commodity trading

What we particularly like about this broker is that you will pay 0% commission to invest in silver-related stocks or trade ETFs. Plus, the spread is competitive. When you place buy and sell orders on stocks, you will not need to pay stamp duty fees, as eToro absorbs this charge. Another option to add silver to your portfolio is via CFDs. This instrument closely tracks the market value of the underlying commodity. This is a good way to trade silver without taking ownership of bullions of metal.

CFDs also allow you to leverage your stake and capitalize if you think silver will fall in price. eToro also offers an alternative way to access commodities. This is called Copy Trading, allowing you to mirror the trades of a seasoned investor. This feature offers a passive way to invest. You can pick from a long list of deposit types to fund your account. This includes PayPal, among other e-wallets, credit and debit cards, and wire transfers.

Pros

  • Invest in stocks at 0% commission and ZERO stamp duty
  • Minimum investment per stock investment is $50
  • Supports debit/credit cards, e-wallets, and UK bank transfers
  • Regulated by the FCA and covered by the FSCS
  • Used by over 20 million people
  • Perfect for beginners
  • Social and copy trading tools

Cons

  • Perhaps too basic for technical traders
  • No support for MT4 or MT5

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

2. Capital.com – Trade Silver Stocks and ETFs With Leverage at 0% Commission

capital.com review

Capital.com holds a license from the FCA, CySEC, ASIC, and NBRB, and is therefore regulated to a high standard. This broker specializes in silver CFDs, rather than direct commodity investments. CFDs are flexible, so if you think the spot price of silver will fall, you can try to profit with a sell order instead of a buy. Capital.com charges 0% commission to trade silver and will facilitate leverage of up to 1:10. Furthermore, the spread is tight.

Applying leverage at Capital.com enables you to boost your position by a multiple of 10. As such, a £100 stake could be magnified to £1,000. Research CFDs and leverage before utilizing either tool, as losses can also be affected. We checked out other markets related to silver and found that you can trade share CFDs here. This covers silver-related stocks such as Pan American Silver Corp (PAAS), Wheaton Precious Metals (WPM), and First Majestic Silver Corp (AG).

capital.com review

There are thousands of markets listed here. Other relevant CFDs include Pro Shares Ultra Silver and iShares Silver Trust (SLV). The minimum deposit is £20 if you finance your account using an e-wallet, like Neteller, or a credit/debit card. If, on the other hand, you opt for a bank transfer, the minimum amount required to fund your account will rise to £250. The Capital.com website is super easy to use and there is educational material surrounding commodities and CFDs available.

Pros

  • Top-rated spread betting and CFD broker
  • Licensed by the FCA, CySEC, ASIC, and NBRB
  • £20 minimum deposit (debit/credit cards and e-wallets)
  • 0% commission on all markets
  • Tight spreads and no fee on deposits or withdrawals
  • Supports thousands of financial markets
  • Convenient for newbies

Cons

  • Experienced traders might consider the broker too basic
  • £250 minimum deposit on bank transfers

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.77% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.

3. AvaTrade – Invest in Silver via Leveraged CFDs

avatrade review

AvaTrade will also allow you to trade silver CFDs on a commission-free basis. We checked out the spread on buy and sell orders and found it to be low on various CFD markets. The environment is considered secure because the regulatory body ASIC, along with six other organizations, has awarded the broker a license. When you trade silver at AvaTrade, you can leverage your position by as much as 1:10.

As we mentioned, this leverage should be used with care. This broker lists share CFDs that concentrate on this particular metal, such as the iShares Silver Trust (SLV) and Proshares Ultra Silver. On the main AvaTrade website, markets are somewhat limited. With that said, you can easily connect your AvaTrade account with MT5, a third-party trading platform.

avatrade review

When connecting your broker account to MT5, you will find many more of the silver-related CFDs offered by AvaTrade. This is in addition to charts and indicators to aid you in speculating on your chosen market. You will need to fund your account with £100 or more to begin trading silver at AvaTrade. This transaction can be carried out using most debit and credit cards, a few different e-wallets, or a bank transfer. The latter won’t, however, reach your account for several days.

Pros

  • Regulated in seven jurisdictions
  • 0% commission on all supported markets
  • Offers spread betting and CFD instruments
  • Minimum deposit of just £100
  • Free demo account
  • Supports MT4 and MT5

Cons

  • Spread betting department limited to just 200+ financial markets
  • No support for instant bank transfers

Trading CFDs and FX Options entail risk and could result in the loss of your capital.

How to Invest in Silver UK – Detailed & Explained in Full

Now that you have a clearer idea of the options available when you are ready to invest in silver, you can sign up with a broker. In the sections below, you will see a walkthrough of how to complete the investment process at multifaceted broker eToro.

eToro offers a variety of silver markets, as well as 0% commission on stocks and ETFs. Moreover, the platform has been approved of and licensed by the FCA and has coverage from FSCS. If that’s not enough, you can deposit as little as $50!

Step 1: Open a Broker Account

Open an eToro account to invest in silver in the UK by clicking ‘Join Now’. Complete the sign-up form in full, which will require your full name, email, mobile number, and a username and password. Confirm your details by clicking ‘Create an Account’.

how to join etoro

After entering your address, nationality, and date of birth, you can proceed to complete the KYC process. Take a photo of your passport or driver’s license and a recent tax bill or bank statement. The latter must include your name and home address. Once the broker has validated your ID and documentation – which usually takes less than two minutes, you can proceed to Step 2.

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

Step 2: Deposit Investment Funds

To invest in silver, you need to finance your account with one of the many supported payment methods. At eToro, the quickest deposit options are debit and credit cards from Mastercard, Visa, and Maestro, as well as e-wallets from PayPal, Skrill, and Neteller.

Deposit Funds

You can fund your account with a bank transfer, but this will take days to process. Add the amount you want to deposit in the appropriate box. You can fund your account with just $50 if you wish. Which, as we said, is around £36.

Step 3: Choose Silver Investment

To locate your chosen silver investment, you can enter the name of it in the search box. Alternatively, view all available assets via ‘Discover’. Here, we are looking to invest in silver via stocks. Specifically, the company First Majestic Silver Corp, which owns several silver mining facilities.

eToro Search First Majestic Silver Stock

When you find a market you want to invest in, click ‘Trade’.

Step 4: Invest in Silver UK

As you can see, the order box here says ‘BUY AG’, which is the ticker symbol of First Majestic Silver Corp stock. Make sure the order form states the market you have chosen and enter the amount you wish to invest.

eToro First Majestic Silver Order

We are allocating $150 to this stock position. eToro allows for low stakes, so you can invest in silver in the UK from just $50. When you are satisfied with the order amount, you can confirm your purchase by hitting ‘Open Trade’.

If you see ‘Set Order’, the market is closed and your position will be executed by eToro when the relevant exchange opens.

Note: UK stock markets operate between the hours of 8 am and 4:30 pm. US exchanges trade between 2:30 pm and 9 pm.

Best Ways to Invest in Silver UK

There are more routes than you might realize to invest in silver in the UK. With this in mind, we are going to divulge the different ways in which you can gain exposure to this popular commodity.

Invest in Silver ETFs

Silver ETFs (Exchange Traded Funds) provide a great opportunity for portfolio diversification. This is because you can gain exposure to a basket of stocks, bonds, or commodities via one investment. When you invest in funds in the UK, especially ones focussed on metals, they will usually be listed on a US stock exchange, such as the NYSE. The ETF will closely track the value of silver, acting as an investment vehicle.

eToro iShares Silver Trust Chart

One of the most common silver ETFs that you can invest in is the Global X Silver Miners (SIL), which tracks the performance of the Solactive Global Silver Miners Total Return Index. Another popular ETF is the Sprott Physical Silver Trust. As the name suggests, this ETF holds its assets in tangible silver bullion at an estimated 153.5 million ounces.

To offer an example of how silver ETFs work:

  • The biggest silver ETF is the iShares Silver Trust, which is listed on the NYSE ARCA
  • SLV monitors the spot price of this commodity and is backed by physical silver
  • Silver ETFs tend to be more liquid than the commodity itself
  • However, if silver rises or falls, so will the iShares Silver Trust ETF

As you can see from the above example, ETFs offer a simple solution to people who want to access the silver markets without taking direct ownership. Notably, eToro also facilitates ETF CFDs. This allows you to add silver commodities to your portfolio and gives you the option of trading rising or falling markets.

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

Best Silver Stocks to Invest in

You might elect to invest in silver via stocks. This could mean buying shares in a company that mines silver, or heavily relies on it for manufacturing. This is one of the reasons it’s best to choose a broker with access to global marketplaces, such as the NASDAQ and the NYSE.

Some silver stocks will be listed on multiple stock exchanges. For instance, Pan American Silver Corp (PAAS) is a silver mining company that owns six sites across Mexico, Argentina, Peru, and Bolivia. The company is listed on the NASDAQ, and also the LSE. This stock is available to buy at eToro with 0% commission.

eToro Pan American Silver Corp Chart

Another way to invest in silver in the UK is via the First Majestic Silver Corp. This is a Canada-based company that concentrates on silver production in Mexico. This stock is listed on the LSE, the NASDAQ, the NYSE, and the TSX (Toronto).

The First Majestic Silver Corp has experienced some sharp price fluctuations recently, shifting by around 17.53% in a month. As such, many market commentators believe that this stock presents a growth opportunity to people looking to invest in silver. With that said, it is crucial you explore your chosen silver stocks yourself and be mindful that prices and conditions are always subject to change.

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

Trade Silver CFDs

Many people wish to invest in silver, but not in a physical sense. An effective substitute for taking delivery of silver bullion and looking for specialist dealers is accessing the market via CFDs. We touched on this concept during our broker reviews.

eToro Silver CFD Chart

To clear the mist, see a practical example of how to trade silver CFDs:

  • Let’s say silver is valued at $23 per troy ounce
  • As such, the silver CFD is also $23
  • You think silver will see a price increase, so place a £1,000 buy order
  • Silver rises in value by 10% and thus – the CFD instrument mimics this
  • You speculated correctly, so cash out with a sell order
  • Your gains from this trade were 10%

Based on your initial stake of £1,000, your profit from this silver CFD trade was £100. On the opposite end of the scale, if you believed its price would fall, you could have placed a sell order to go short. Many brokers enable you to add leverage when trading silver CFDs. If you applied leverage of 1:10 on the above trade, your position value would increase to £10,000.

This tool also magnifies losses. As such, be sure to educate yourself on leverage before using it. Many newbies stick to a less risky ratio such as 1:2, meaning you still double your position size.

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

Is Silver a Good Investment?

To decide whether silver is a good investment, you can look at data such as past performance and the sectors that use the material in production. You can also investigate the general market sentiment on your chosen investment.

To give you a head start, see below some more information surrounding silver.

What is Silver and What is it Used for?

Silver has been mined since 3000BC and used for various technologies and products. Silver is still important and is used in many industries to this day. You may have read that silver plays in the new green generation. However, that is just one of the reasons that market commentators believe now is the time to invest in silver in the UK.

See some uses for this commodity below to guide you in your decision-making process:

  • The commodity possesses antibacterial properties and behaves as a biocide in hospital settings
  • Silver can be found in most of the electrical items we use today
  • This covers everything from the circuit boards in our mobile phones to TV screens and computer keyboards
  • Silver is also used by NASA to purify water in space
  • This metal is utilized by the aircraft industry. In high temperatures, galling can occur (wear/friction), albeit, silver reduces the effects of this
  • Automobile industries use silver also, due to its oxide resistance, and electrical and thermal properties

As you can see, as well as being utilized in the global efforts to produce renewable energy, the use of silver is widespread. Silver grew by 47.89% between 31st December 2019 and 2020 alone. As such, you can be fairly sure that when you invest in silver, the demand for it is showing no sign of slowing down. With that said, you should study fundamental analysis and market data before investing.

Silver Price History

In this guide on how to invest in silver in the UK, we have mentioned the need to perform research before risking any funds. An important factor to consider is the price history of your chosen market. Silver is priced by the troy ounce and will be quoted to you in US dollars. This is much the same as any other commodity – such as gold or oil.

Statista Average Price Silver Chart

To help you decide whether to invest in silver in the UK, we are going to take a look at the average price of the asset globally.

See some real figures below, shown in nominal USD per troy ounce:

  • In 2014, silver was trading at an average of $19.1 per troy ounce
  • By 2015, the commodity had fallen by 17.8%, to around $15.7 per troy ounce
  • Five years later, in 2020, Silver was trading at around $20.5 a per troy ounce, which illustrates an increase of 30.5%

Many market commentators estimate that silver will continue to rise this year. As you can see from the above chart, it was expected that silver would average $25 in 2021, and will fall in the years to come.

With that said, some publications are even more bullish – with belief that silver could reach highs of $100 per troy ounce by 2025. You should, however, remember that it’s super important you carry out research of your own and check out hard facts and figures before you gain exposure to this volatile metal. Assumptions can lead to huge losses for newbie investors.

Should I Invest in Silver?

When you consider whether or not to invest in silver in the UK, it should be based on research and your own personal targets, rather than the viewpoints of others. Having said that, to save you some legwork, see below some more information on this commodity.

Invest in Silver to Hedge Against Inflation

When you consider adding silver to your portfolio in the UK, you should know it also makes a good hedge against inflation. One of the reasons silver acts as a hedge is the way its value is derived, in comparison to say US dollars. For instance, the price of the US dollar is largely determined by central banks, the health of the wider economy, the federal reserve, and various global factors.

eToro Silver Stats

The price of silver is somewhat resistant to inflation and is therefore seen as means to store wealth. Here is how it works – during times of inflation, investors flock to silver and other metals. This creates what’s known as a countercyclical relationship. This high demand increases the price of silver, making it a perfect hedge against a decline in the purchasing power of money.

As we touched on, there are numerous ways to invest in and trade silver. As such, you won’t be short of options, provided the broker you choose lists an appropriate market.

  • Silver has been known to move in the opposite direction to bonds and stocks
  • As such, at times when the economy isn’t doing so well, many people look to trade alternative assets – such as silver, gold, oil, or copper
  • Unlike currencies such as US dollars, silver, in its physical form, has intrinsic worth
  • This makes it a good hedge against inflation as it holds its value in the long-term

Investing in silver to hedge against inflation is even more effective if you are doing so via as eToro. Not only is this because the platform offers 0% commissions and tight spreads, but the minimum trade requirement stands at just $50.

Silver is Part of the Renewable Energy Movement

As you may or not be aware, when you invest in silver in the UK, you are also taking part in the renewable energy movement. This is a field that is rapidly expanding.

Therefore, now could be a good time to invest in silver. As well as copper, an increasing amount of silver is being used to produce solar panels and such. If you like the idea of a green future, this could be another reason to invest in silver.

  • Silver possesses high thermal conductivity and plays a crucial part in renewable power generation
  • This metal is used in commercial and residential photovoltaic solar panels
  • Silver is resistant to corrosion, making it super useful in electric car manufacturing
  • Market commentators believe that commodities such as coal are likely to fall out of favor with retail and institutional investors
  • Furthermore, many governments are supportive of the transition to cleaner energy
  • Leaders all over the world are investing millions into the next generation of green technologies
  • The UK government alone has pledged to invest £92 million in green technology innovators

With silver being used in everything from solar panels and electric vehicles to battery storage, there is every chance that if you invest in this commodity now, the industry will continue to grow.

As you can see from the above examples, silver is a highly useful commodity in its own right.

Silver is Cheaper Than Gold

Silver has been referred to as the poor man’s gold, drawing attention to its lower value. When you invest in silver, this might not be a bad thing. For instance, as valuable as gold is, both metals are used to hedge against inflation, yet silver is a much more affordable commodity. This means that you are quite literally getting more metal for your money.

  • If you want to invest in silver in the UK, you should be hyper-aware of its volatile nature
  • It is cheaper than gold but is also more sensitive to price fluctuations
  • As such, silver can be considered a good long-term investment for people with a high tolerance for risk

On the other hand,  you might look to invest silver when a bull market is around the corner and only hold on for a short time. Selling silver when a bull market is at its height can produce higher rewards than gold, as its more volatile and rises much farther.

Correlation Between Stocks, ETFs, and Silver Spot Prices

Signing up with the right broker will open up many avenues to invest in silver. As we said, this includes investing in the companies that mine or produce silver. Alternatively, you can invest in or trade a basket of stocks via ETFs, or trade silver CFDs.

Google Chart Sprott Physical Silver Trust

All the aforementioned methods mean you don’t have to take ownership of the metal, but can still benefit from its price fluctuations.

See the correlation between stocks, ETFs, and silver spot prices below:

  • When the demand for silver is on the increase, its spot price will reflect this
  • In turn, the price of silver ETFs and stocks will most likely be impacted
  • There are lots of other things that can affect your portfolio when you invest in silver
  • For instance, companies that mine silver in  Mexico had to cease production, by government decree, following the COVID-19 outbreak
  • Delays in production and supply will have an effect on the company and its underlying profits

Then there are major environmental disasters, like the big spill of 2018, whereby toxic waste from a mine owned by Minera Cuzcatlán contaminated a nearby stream. This was heavily documented at the time and the company was fined. This kind of event illustrates the importance of thoroughly researching before you invest in silver, as closures, disasters, and company errors can have an effect on your chosen market.

The Cost of Investing in Silver in the UK?

When you invest in silver in the UK, there will undoubtedly be a cost attached. How much you are charged in fees will largely be dependent on the brokerage you sign up with and, in some cases, which market you choose. For example, when you invest in silver stocks that are UK-listed, there is usually a stamp duty tax attached.

Below you will find some other potential fees you may have to pay to add silver to your portfolio.

Deposits and FX Fees

Whilst seemingly obvious, you should choose a broker based on multiple attributes. This is because it’s all very well a platform offering access to thousands of stocks, but if you have to pay high fees to invest in silver, it won’t be cost-effective.

  • Silver is priced in US dollars
  • Many silver ETFs and stocks are also listed on US marketplaces
  • This means you will need to pay the broker a fee to swap British pounds for US dollars
  • This guide found that some brokers charge an FX fee of 1%, which is £10 for every £1,000 order
  • On top of this, you could also be charged a fee for the deposit itself

In contrast, eToro only stipulates 0.5%, to exchange GBP for USD. You won’t need to worry about FX fees after funding your account, as this will be taken care of at the time of your deposit. The platform and your portfolio will be denominated in USD thereon.

Silver Stock Commission

When you investigate how to invest in silver in the UK, check out the commission fees you may be expected to pay to the broker. There is a contrast between brokers where fees and transparency are concerned, so exercise caution.

Google Chart First Majestic Silver Corp

To give you an indication of commissions, Hargreaves Lansdown charges £11.95 to invest in silver-related stocks in the UK, and the same again when you cash out. Halifax stipulates £9 per buy and sell order. Whereas eToro charges 0% commission on silver stocks and ETFs.

Silver ETF Expense Ratio

ETF providers charge an expense ratio. This is charged as a percentage annually to cover admin and operating expenses. Silver ETFs usually stipulate an expense ratio of around 0.6%, if not less. This will depend on things like; the number of assets under management and daily volume. If you are quoted an amount beyond 1% a year, this is steep.

How to Invest in Silver UK – Conclusion

Throughout this guide on how to invest in silver in the UK, we divulged the various routes you can take to gain exposure to this commodity. You can add silver to your portfolio by investing in production and mining companies, ETFs, or CFDs that track the underlying value of the metal itself.

Whichever route you decide is best for your goals, ensure you are signing up with a trustworthy brokerage. eToro is not only covered by the FSCS but is also regulated by the FCA. The broker offers a selection of silver stocks and ETFs with 0% commission and supports low minimum investments and deposits of just $50.

eToro – Best Broker to Invest in Silver UK

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FAQ

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About Kane Pepi PRO INVESTOR

Kane Pepi writes for several high profile publications such as InsideBitcoins, the Motely Fool, and Learnbonds. Based in Malta, Kane is extremely skilled at complex subjects related to financial matters - including a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and actively engaged in Doctorate Degree research, for the money laundering threats of the blockchain economy.