So you’ve decided that you would like to invest in silver. Now the question is, where do you start?
Well there’s multiple ways to do it. So the first thing to decide is whether you want to invest in “paper” silver, or physical silver. Let’s take a look at the differences, as well as the advantages of each.
The most popular options for “paper” silver are:
1) a silver Exchange Traded Fund (or ETF) which closely but not perfectly tracks the movement of the price of silver
2) the publicly traded stock of a company that mines or digs up and produces the silver
3) an ETF or mutual fund made up of several different silver mining stocks
Anything outside of this scope is typically only dealt with by professional paper traders and PHD’s sitting in front of Excel spreadsheets 20 hours a day. I am no professional, but you are certainly welcome to consult one, and you should definitely do your own due diligence.
If you’ve decided that you would like to invest in paper silver, and you’ve researched the different stocks or ETF’s or mutual funds that you want to own, the next step would be to open a brokerage account. You can do this through an online discount brokerage company like ETrade, TDAmeritrade or Schwab.
Advantages Of Paper Silver
1) If you are trading strictly for the up and down movement of the *spot price* of silver, it would be faster to buy and sell on paper than it would be to buy the physical metal and then sell it later
2) There would be no markup above the spot price as when buying and taking possession of physical silver.
3) There would be no need to worry about how to store the physical metals that you are taking possession of.
4) You’re trading for the value of silver in general, there’s no need to dig through the different types of physical silver and look at all the different artwork to decide what you want to buy.