Invest in Silver

Invest in Silver

Silver is a unique metal as it is important for both industry and used as money. Silver is also the metal that conducts heat and electricity best, which makes it important for the green transition.

How to invest in silver?

There are several ways to invest in silver:

  • Physical silver: You can buy the physical raw material and store it at home, or in another safe place.

  • ETCs (Exchange Traded Commodities): By buying an ETC, you own physical silver, but you do not have to take care of the storage yourself.

  • Derivatives: Investment products that follow the price of silver, but where you have a counterparty risk against the issuer of the product.

  • Shares: The share price of the mining companies that extract silver is strongly linked to the spot price for silver. Mining company shares often move more than the price of the underlying asset because you also add a company risk. This means that the share goes up more when e.g. the silver price goes up, and vice versa.

  • Funds: There are different types of silver funds. When you invest in a fund, you pay a fee for an expert (fund manager) to select the underlying assets that provide exposure to gold. A fund may include any of the options listed above. There are two types of funds:

    • Daily traded fund: Often actively managed, which means that an expert reviews the holdings and rebalances at regular intervals.

    • Exchange Traded Fund: A basket of securities that follows an index and is traded as a stock.

An example of a daily traded fund focusing on silver mining companies is AuAg Silver Bullet.