How To Buy Silver Stock
Amidst economic uncertainty and nagging inflation, some investors are looking to diversify their portfolios. By investing in a variety of assets, like precious metals, to go along with other holdings like stocks and bonds, the hope is to build a buffer against economic headwinds and potentially find new ways to make money.
how to buy silver stock
But how can you invest in precious metals like gold and silver? While assets like publicly traded stocks have a fairly straightforward buying process, investing in gold and silver can be a little bit more complex, given the variety of ways to buy these precious metals.
The good news, though, is that you don't have to literally mine for gold to reap the potential benefits. There are several other ways to gain exposure to gold and silver in your portfolio, as we'll explore here.
But don't let the names fool you. You probably don't have to open separate accounts if you want to buy both types of metals. Generally, these are self-directed IRAs that allow you to purchase physical gold, silver, or other assets that qualify for the tax advantages of a regular IRA, and the bullion can be held in a depository.
But not all financial services companies offer IRAs in which you can buy physical gold or silver. So, if you have an existing IRA and don't want to open another one, you might instead invest in assets like gold ETFs through your regular IRA, rather than physical gold. Keep in mind though the risk that can come with speculating on precious metals, especially as you near retirement.
However, fees can differ depending on what you ultimately invest in within an IRA, such as how mutual funds carry annual management fees. And fees for gold IRAs/silver IRAs can also vary, such as if the provider charges separate trading fees.
One of the easiest ways to buy gold or silver is to invest in gold exchange-traded funds (ETFs) or silver ETFs, which essentially trade like regular stocks. You can buy and sell ETFs through your stock brokerage. The ETF provider typically holds physical gold or silver bullion, and the value of those precious metals gets reflected in the ETF's share price.
Another way to invest in gold or silver is to get exposure via stock in mining companies. In theory, if precious metals prices go up, then companies that mine those metals would also increase in value, but prices can also depend on how these companies operate.
You can buy stock in specific mining companies, much as you would trade tech stocks, for instance. Or, you can buy an ETF that invests in a variety of gold or silver mining companies (or perhaps both). Fees for mining ETFs tend to be a bit higher than bullion ETFs.
Another option for investing in gold or silver is buying physical bullion, such as gold bars or gold coins, or silver bars and coins. Bars and coins can have designs/images on them, for which they are sometimes considered collectibles.
You can find some companies that sell physical gold and silver online and ship the bullion to you. However, this can be more expensive than other forms of buying precious metals. The prices of physical gold could be roughly 5-10% higher than the current trading price, if not more. Silver bullion can trade at even higher premiums, like 25% or more, though the entry point is significantly lower than it is for gold.
Plus, you then have to figure out how to safely store the bullion, such as in a safe in your home or at a depository. You can also find some physical stores that buy and sell gold and silver, but you also will often pay a premium there.
There are many ways to buy gold and silver, so consider what you're looking to achieve with these investments before picking a path. If you like the idea of physically owning gold or silver coins, for example, then you might go down that route, but if you prefer the liquidity and relative ease of trading stocks, then you might buy an ETF or shares of mining companies. Consider consulting with a financial advisor or trusted professional to see what's right for you. Learn more now!
Although the precious metals sector represents a historically volatile arena, investors may want to start considering ideas for the best silver stock to buy. With the convergence of low supply and increasing demand from burgeoning industries, the white metal could see significant gains.
However, HL ranks among the top choices for best silver stock to buy among Wall Street analysts, who peg HL as a consensus strong buy. Moreover, their average price target stands at $6, implying over 18% upside potential.
One of the smaller entries among candidates for best silver stock to buy, McEwen Mining (NYSE:MUX) offers an intriguing opportunity. Primarily, the company focuses on three gold and silver-producing mines in low-risk jurisdictions of the Americas. Even better, MUX has the support of the market. While MUX gave up 21% of equity value on a trailing-year basis, since the January opener, it gained 1.5%.
We are a Toronto-based gold and silver mining company with tremendous upside potential, due to our 100% interest in the Diablillos project. The Diablillos project has a very large existing Measured and Indicated Resource base of over 90 million ounces of silver and 1.0 million ounces of gold.
For investors looking for opportunities within gold and silver mining stocks, AbraSilver presents an attractive opportunity. The company is well-positioned among silver mining stocks for several reasons:
AbraSilver presents an excellent opportunity to participate in a growth-focused, active, junior silver exploration company. In addition to silver mining projects, our diversified project portfolio provides leverage across multiple metals including gold and copper. AbraSilver is well-positioned as one of the best silver stocks to invest in because of our undervaluation compared to peers.
AbraSilver is an undervalued investment opportunity with an outstanding portfolio of Au, Ag, and Cu projects in Argentina. Its primary focus is on exploring and advancing the Diablillos project, which is a high sulphidation epithermal silver-gold deposit with a large resource. The Diablillos project is located in the mining friendly province of Salta.
AbraSilver Resource Corp. is a Toronto-based silver and gold exploration company which has become well-positioned as an advanced-stage silver mining company to invest in. AbraSilver provides major leverage to silver and gold through its 100% interest in the Diablillos project in the mining-friendly Salta province in Argentina.
Fortuna Silver Mines (NYSE:FSM) is definitely a risky, speculative stock. It trades well within penny stock territory at less than $3 per share. That risk comes with significant upside of roughly 59% built into its target price.
Per-ton production costs increased 9% in the quarter while silver prices declined 12% during the same period. The combination led to a particularly tough quarter in which EPS dropped from 5 cents to a loss of 2 cents.
Hecla Mining (NYSE:HL) is another penny stock worth considering in silver production. The Idaho-based firm also produces gold and saw a 10% increase in overall production on a sequential basis.
The company acquired and is in the process of closing a deal for a high-grade silver mining operation in the Yukon during the quarter. The deal potentially makes Hecla the largest silver producer in Canada moving forward.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The best investment strategy depends on your goals. If you want to build a long-term silver investment, perhaps even one to pass on to heirs, you might prefer to buy physical silver bullion. Physical silver typically comes with higher retail fees, but it's a physical product that you can simply store. ETFs and other silver funds are cheaper to actively trade, making it easier to capitalize on short-term price fluctuations, but these products charge annual expenses."}},"@type": "Question","name": "What are the best silver coins to invest in?","acceptedAnswer": "@type": "Answer","text": "If you want to purchase physical silver bullion, you have several options. The most secure option is to buy from a government mint, such as silver bullion from the U.S. Mint. Private dealers also sell physical silver, but the average silver investor may find that it's easier to trust a product that comes directly from a government mint."]}]}] .cls-1fill:#999.cls-6fill:#6d6e71 Skip to contentThe BalanceSearchSearchPlease fill out this field.SearchSearchPlease fill out this field.BudgetingBudgeting Budgeting Calculator Financial Planning Managing Your Debt Best Budgeting Apps View All InvestingInvesting Find an Advisor Stocks Retirement Planning Cryptocurrency Best Online Stock Brokers Best Investment Apps View All MortgagesMortgages Homeowner Guide First-Time Homebuyers Home Financing Managing Your Loan Mortgage Refinancing Using Your Home Equity Today's Mortgage Rates View All EconomicsEconomics US Economy Economic Terms Unemployment Fiscal Policy Monetary Policy View All BankingBanking Banking Basics Compound Interest Calculator Best Savings Account Interest Rates Best CD Rates Best Banks for Checking Accounts Best Personal Loans Best Auto Loan Rates View All Small BusinessSmall Business Entrepreneurship Business Banking Business Financing Business Taxes Business Tools Becoming an Owner Operations & Success View All Career PlanningCareer Planning Finding a Job Getting a Raise Work Benefits Top Jobs Cover Letters Resumes View All MoreMore Credit Cards Insurance Taxes Credit Reports & Scores Loans Personal Stories About UsAbout Us The Balance Financial Review Board Diversity & Inclusion Pledge View All Follow Us
Budgeting Budgeting Calculator Financial Planning Managing Your Debt Best Budgeting Apps Investing Find an Advisor Stocks Retirement Planning Cryptocurrency Best Online Stock Brokers Best Investment Apps Mortgages Homeowner Guide First-Time Homebuyers Home Financing Managing Your Loan Mortgage Refinancing Using Your Home Equity Today's Mortgage Rates Economics US Economy Economic Terms Unemployment Fiscal Policy Monetary Policy Banking Banking Basics Compound Interest Calculator Best Savings Account Interest Rates Best CD Rates Best Banks for Checking Accounts Best Personal Loans Best Auto Loan Rates Small Business Entrepreneurship Business Banking Business Financing Business Taxes Business Tools Becoming an Owner Operations & Success Career Planning Finding a Job Getting a Raise Work Benefits Top Jobs Cover Letters Resumes More Credit Cards Insurance Taxes Credit Reports & Scores Loans Financial Terms Dictionary About Us The Balance Financial Review Board Diversity & Inclusion Pledge InvestingAssets & MarketsMutual FundsHow to Invest in Silver with Mutual Funds, ETFs, and ETNsWhat to Know Before Buying Into This Precious Metal 041b061a72