Taking the Mystery Out of Silver Buying

Silver buying is one of the most popular ways that people invest in precious metals. Silver, in fact, is one of the two precious metals – along with gold – that have an incredibly long history in society as stores of wealth. Because of this, investors oftentimes engage in silver buying when they are worried about the value of currency and instability on the overall financial markets. For many people, silver buying is a great strategy because it is not quite as popular as gold buying and because it has tremendous opportunities to reap a profit.


Silver buying involves some rather counterintuitive aspects of the market. To begin with, silver is much more common in the Earth’s crust than is gold. Nonetheless, there is less silver on the market to be traded than there is gold. This contributes somewhat to the volatility for which silver is quite well known. Silver prices can climb significantly in very short amounts of time. This makes silver popular with people who like to get into the precious metals market as a way to make fast money.

Silver buying, however, is also very popular with long-term investors. Most investors that hold onto precious metals holdings for a long period of time have a mix of precious metals in their portfolios. In addition to gold and silver, most of them are likely to have platinum and palladium in their portfolios to some extent, as well. This helps them to spread out the risk a little bit. While the precious metals markets can move as one, each of the precious metals within the market can also move on its own.

Under the Radar

Even though the prices for gold have gone down since the beginning of 2013, buying gold remains very popular with investors who want to protect their wealth. Platinum and palladium have also become quite popular. This has allowed silver buying as an investment strategy to exist somewhat under the radar of many investors.

One of the advantages of this is that it enables silver to function as a metal that isn’t quite so heavily influenced by market forces. Silver always has quite a bit of volatility in its pricing, but it isn’t as volatile as gold is right now, which makes it attractive to many investors.

Silver is also much less expensive than gold in terms of price. The normal ratio at which gold and silver trade is 15:1. Because of this, silver is very attractive with people who want to get in on the precious metals markets but who don’t have thousands of dollars to put down on a couple of ounces of gold. Silver, on the other hand, can be purchased for around $20 an ounce, which is also the most likely lowest price for this metal. It costs approximately $20 to produce an ounce of silver.

The low dollar price and the fact that silver can go up in value very quickly both make it exceptionally attractive to many investors. It might not get as much attention as gold, but many investors find that to be a good thing.

For long-term investors, purchasing silver in bullion form is usually the most popular option. Silver coins of a known purity and quantity of silver can be purchased for very inexpensive prices, even when they happen to be antiques, in many cases. Silver bullion is also a popular option.

There are other options for people who want to get into silver buying to make money quickly. This type of silver buying usually involves ETF options and other options that trade very quickly. Physical bullion, however, remains quite popular.