How to Invest in Silver in 2022 — From jewellery and silverware to industrial and medical equipment — silver has proven to be a precious metal that seasoned investors can count on for years to come. Due to its excellent conductivity, it’s served as a metal that has proven crucial to the auto sector. Semiconductor microchips, circuit boards, switches, televisions, smartphones, and appliances — all these products contribute to revenue within the electronics industry.
With the growing demand for electric vehicles (EVs), and as sustainable projects increasingly emerge, silver is a valuable asset class that seasoned investors use to diversify their portfolios. Silver is a go-to substitute for standard assets like stocks and bonds, especially in times of economic uncertainty. It’s due primarily to financial institutions and pension funds; seasoned investors know to turn to silver stocks for a safe place to secure their investments when they print more money.
Whether through physical silver, ETFs or mutual funds, there are many ways to invest in silver. One of the easiest ways to buy silver coins or bars is online through reputable dealers. Still, it’s important to note the role that the silver mining industry plays as well. Most silver is extracted from ores and is a by-product of manufacturing gold, copper, lead, and zinc.
Only about 28 percent of output comes from primary silver mining, while the remaining 72 percent comes from by-product mining ventures. While silver bullion prices fluctuate, silver miners tend to outperform the metal’s price during rallies. Investors draw their attention to precious metals as inflation hits an 18-year high in Canada, along with rising concerns surrounding government debts south of the border. While gold is the best safe-haven asset, it is also wise for investors to include silver products as part of a diversified portfolio.
Choosing the less volatile method will be essential for seasoned investors looking to make a splash, so we’ll walk you through some fool proof ways to invest in silver stocks.
Invest in silver mining stocks
There are many reasons seasoned investors can gain from owning silver mining stocks. As mentioned above, when the price of silver rises, so does the company’s earnings. Investing in a company with a strong exploration and development position could be a boon to your portfolio. If production occurs within the company, it will attract attention from outside investors, which could increase the stock’s value and boost earnings.
Invest in physical silver coins and bullion
Whether in coins or bullion, physical silver is a tangible asset that you can keep in your possession and sell or liquidate if necessary. Seasoned investors often keep it secure in safety deposit boxes and other secure locations, but this is the easiest way to buy it. Both demonstrate tremendous value when needed, whether a silver bar or minted silver coins. Unlike stocks, this method of investing does not provide cash flow. And you could end up paying more for collectible items — something to keep in mind.
Silver-related Exchange-Traded Funds (ETFs)
If you’re looking for a low-risk substitute to futures options, which we’ll discuss below, you can invest in silver through an exchange-traded fund (ETF). Seasoned investors know that there’s value in holding silver if the price rises. An ETF invests in genuine silver and delivers the return on silver prices less the ETF’s expense ratio. Another advantage is that You will be able to sell your silver at market value, and the funds are highly liquid. As a result, you’ll be able to sell your funds at the best possible price, and you’ll be able to do it on any day the stock market is open.
Silver futures contracts
Seasoned investors often speculate about the price of silver, and because silver futures offer a significant degree of leverage, they are a popular investment vehicle for them. Futures contracts allow buyers to speculate on the price of a commodity. It also allows you to be on other securities in the future. Simply put, you can acquire a relatively important position in the silver market at a lower cost, which allows you to make a significant profit if silver futures move in the right direction.
As we continue to fight the battle against climate change, silver will play a crucial role in the renewable energy sector. With continual demand from the automotive and tech sectors, there is no better time than now to invest in silver. For more information on AgMR’s mission on becoming a leading silver producer, contact our Investor Relations Team today!