How to Buy Silver in Australia
When looking for assets to diversify your investment portfolio, precious metals stand out as a fantastic choice, serving as a hedge against inflation. Before investing in the physical product, though, knowing how to buy silver is essential.
This guide on how to buy silver in Australia will help you consider the different types of silver investments, the process of adding the precious metal to your portfolio, and where to buy the commodity. Here's all you need to know.
Why Silver?
Precious metals like gold and silver have been popular commodities held by savvy investors for many generations, and it’s not hard to see why. Their intrinsic value and stability make them a particularly wise choice in tumultuous markets, which we have seen frequently in recent times. Moreover, they avoid the risks of losing all value as has been seen by several stocks as well as digital assets and cryptocurrencies over the years.
While gold is often the go-to choice for investors, silver poses several potential benefits. It is both cheaper to buy and easier to liquify, thus giving investors greater fluidity. Moreover, the combination of a smaller market and increased industrial use (not least in the renewable energies market) could open the door to increased growth in the mid-term future.
Choosing a Type
When considering how to buy silver, you must first research the market and understand the different types of commodities you could purchase. Silver investments can be split into two categories, physical silver and paper silver. Physical silver includes silver bars, silver coins, and silver jewellery. Conversely, paper silver covers silver EFTs, silver futures, and silver mining shares.
There is no single right option, which is why you must research the market to select the best investment for you. For example, silver jewellery is valued subjectively based on its design. This can open the door to huge ROIs but also poses the threat of significant losses if you overpay, not least because prices are far higher than the value of the metal. Meanwhile, gold mining investments work like other stocks and shares. So, if the company performs well, your investment could grow faster than the price of silver. Conversely, though, a poor performance can see values plummet.
Ultimately many investors who learn how to buy silver in Australia will hold several types, including physical and paper assets.
Finding Reputable Sellers
When learning how to buy silver in paper form, using a trustworthy investment platform with low fees is vital. For physical silver purchases, though, you must take care not to ensure that you have bought an asset in good condition that will hold its true value. Uncirculated coins, for example, are in mint condition and retain the attributes that stem from a practised manufacturing process while purity and other features are stamped on the coin.
Like gold, silver bars may offer better prices per gram due to lower production costs, which results in added convenience. Whichever route you take, though, you need to know that you will receive a genuine silver asset at a fair price. While it is possible to buy silver from online-only services, most investors prefer to use trusted local dealers like Bullion Hub, not least because it offers an opportunity to view assets in person before making an investment.
Selecting the Right Amount of Silver
Another key question for prospective silver investors to answer relates to how much silver should be purchased. The price of silver currently stands at around $1.43 per gram or $44.55 per ounce. When dealing in silver bullion bars, though, a larger weight will bring down the cost per gram. Conversely, though, it does make it harder to sell the asset, meaning you sacrifice some liquidity. With this in mind, it may be worth investing in multiple bars of varying sizes.
Bullion Hub is a reputable dealer selling all of the most popular sizes including 10oz, 100oz, 500g, 1kg, and 5kg silver bars. Bullion dealers can additionally help you with the next step, which is deciding on where to store your assets, at an affordable price. Alternatively, you could use a bank vault or home storage. Either way, you should make a decision before buying silver.
The Final Word on How To Buy Silver in Australia
Silver is a great investment that can diversify your portfolio and outperform stocks, not least in times of economic instability. However, it’s vital that you choose the right commodity and find a trustworthy dealership. Otherwise, you could fall victim to losses from a traditionally very stable investment.
To learn more about how to buy silver in Australia or make an investment, contact the Bullion Hub team today.