How To Buy And Invest In Silver In Australia: Explained

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People want to know how to buy and invest in silver stocks in Australia.

 

Silver has been cherished as a valuable asset for hundreds of years. Many investors consider it for long-term investment and portfolio diversification.

 

It has remarkable physical and chemical properties making it a practical choice of metal for coins, Bullion, jewellery, and similar applications.

 

This comprehensive guide will teach you about the various silver markets and the best ways to trade or invest in Silver in Australia.

 

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Buy Australian & international shares with unlimited commission-free trades. (No brokerage). Other fees may apply.

 

 

 

1. Reasons To Invest In Silver

 

Here are some good reasons why investing in silver could be a smart idea:

 

  • The value of silver has been increasing with time. It is among those assets that have offered higher returns when markets go down. 

  • It protects your wealth from inflation which results in higher interest rates and a reduction in the value of your savings. 

  • This precious metal is a safe investment against economic uncertainty and currency devaluation.

  • Silver acts as a safety net against market fluctuations during political and economic instability.

  • It is an excellent addition to a well-balanced investment portfolio. It performs well in volatile markets and serves as a preservation of wealth.

 

 

2. How To Buy Silver Online In Australia?

 

Here are some reliable methods to purchase silver online in Australia:
 

 

Purchase Silver Stocks

 

Trading or investing in a silver stock gives you indirect exposure to the valuable metal. Several stock brokers offer the facility to buy shares in silver mining companies.

 

Besides potential returns, you can also take advantage of dividends.

 

Some Popular Companies Operating in Silver Mining Include:

 

  • South32

  • Newcrest Mining

  • Golden Deeps

  • Silver Mines

  • Investigator Resources 

 

While numerous companies are available to invest in, it's essential to recognise that stock-based investments are highly speculative and susceptible to market fluctuations.
 

 

 

Invest In Silver ETFs

 

Another way to add silver to your portfolio is through a silver-based exchange-traded fund (ETFs).

 

It is an investment fund that trades on the ASX and tracks the movement of physical silver bullion or stocks of companies engaged in the silver industry.

 

Unlike stocks, silver ETFs (Exchange-Traded Funds) offer a quick, easy, and safer method to purchase, sell, and trade silver. They also provide you with a broader exposure compared to investing in just one company's position.

 

However, you don't get physical access to the asset and must pay management, trading, and other fees.

 

If you still need a trading account to buy silver, consider eToro, which is used by many investors in Australia and worldwide. You can create an eToro trading account HERE.

 

(eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged. Not suitable for all investors. Capital at risk. See PDS and TMD)

 

The trading platform offers extensive trading features, social trading tools, and copy trading to imitate the trades of other famous traders.

 

 

Buy Silver Futures Or Options

 

Silver "Futures" are agreements to trade the metal at a predetermined price on a future date. You pay current prices today for the asset you'll receive in the future, at the price it will be then.

 

In this contract, buyers and sellers must follow through on their part of the deal. If the futures contract price goes up between when you buy it and its expiration date, you make a profit.

 

You can trade silver futures through derivative investment products called CFDs for both day trading and to make longer-term investments.

 

Silver "Options" are contracts that give "option holders" the right to trade silver for a specified price on a fixed date. While call options provide the right to purchase silver, put options give the right to sell it.

 

Futures and options trading is ideal for professional and experienced traders as it involves more leverage that can lead to more risks.

 

 

Buy Silver Bullion

 

If you want to invest in physical silver, buying silver bullion bars or coins is a popular way to invest in silver for the longer term. "Bullion" represents high-grade silver with a minimum of 99.5% purity.

 

Like other investments, market conditions impact the price of physical silver, but you gain direct and complete control over the asset and can sell it on your terms anytime.

 

Before purchasing silver coins, assessing their cost per gram compared to silver bars is crucial. Two key factors come into play when considering this investment approach.

 

Firstly, selling physical silver coins often commands a premium price above the spot market price, but finding a buyer willing to pay this premium requires significant effort. Secondly, storage can become a notable concern when dealing with silver coins.

 

 

Bullion Silver Dealer Name Locations Product Types
ABC Bullion Sydney, Perth, Online Bars, Coins, Unallocated Bullion
Bullion Capital Online Bars, Coins
Ainslie Bullion Brisbane, Online Bars, Coins, Unallocated Bullion
KJC Sydney, Online Bars, Coins, Collectables
Jaggards Sydney, Online Bars, Coins

 

 

3. Steps To Buy Silver Stocks (Shares) In Australia

 

You can invest or trade in silver in various markets, such as silver bullion, spot silver, futures, options, ETFs, and stocks.

 

Follow the steps below trade or invest in silver stocks:

 

 

Step 1: Create A Silver Investment Trading Account

 

Before buying silver stocks, you must create an online account with a broker.

 

Newbies can practice without risking real money by using a demo account until they gain confidence and the necessary skills.
 

If you still need a trading account to buy silver, consider eToro, used by many investors in Australia and worldwide. You can create an eToro trading account HERE.

 

(eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged. Not suitable for all investors. Capital at risk. See PDS and TMD)

 

Buy Australian & international shares with unlimited commission-free trades. (No brokerage). Other fees may apply.

 

 

 

Step 2: Understand What Moves The Value Of Silver

 

Is it better to buy gold or silver right now? It is the most important thing you need to consider to get the most out of your trade.

 

Even though physical silver and gold have lasting attributes most other investments don't, any good consumer will consider the timing of their buying decisions.

 

Several factors impact their price, such as:

 

  • Their industrial use

  • The value of the US dollar

  • Economy

 

If the dollar is weak, silver becomes cheaper, leading to a rise in demand and price. Also, during economic growth, the value of silver diminishes as investors switch to other higher-yield assets.

 

Historically, the best times to purchase gold are early January, March, April, mid-June, and early July. On average, the best times to buy silver are in early January, March, or late June.

 

(Past performance does not guarantee future results.)

 

 

Step 3: Choose Silver Stocks

 

When you're confident that it's the right time to buy silver stocks, the next thing to do is find companies that work with silver, especially in mining and production.

 

Once you've made your decision, you can become a shareholder of those companies. As a shareholder, you'll not only have ownership of the company's shares but also enjoy other advantages like voting rights and receiving dividends.

 

 

 

Step 4: Decide Whether You Want To Invest Or Trade

 

After having identified the silver stocks, understand the difference between silver trading and investing to pick the right strategy for buying the precious metal.

 

Choose silver trading when:

 

  • You want to take long (buy) or short (sell) positions on the underlying price of silver.

  • You have a short-term trading horizon

  • You want to use leverage to gain market exposure

  • You want to hedge your trading portfolio

  • You want to trade without buying the underlying asset

  • You want to gain only from price movement and not from corporate actions like dividends, bonuses, buybacks, etc. 

 

Choose silver investment when:

 

  • You want to own stocks and ETFs

  • You want to capitalise on the longer-term price appreciation to grow your wealth.

  • You want to diversify your portfolio.

  • You want to benefit from voting rights and dividends.

 

 

Step 5: Place Your First Trade

 

You can use the web or app version of the trading platform to trade or invest in silver. Many platforms offer technical assistance that you can use to your advantage to make intelligent decisions.

 

  • Technical indicators

  • Trading alerts

  • Buy and Sell signals

  • Expert analysis

 

 

Step 6: Open Your First Trade

 

Start your trading journey by opening your first position. Profit from price differences by trading on the buy or sell side of a silver stock or ETF.

 

If you believe the market value will rise within a specific timeframe, buy the stock. Conversely, sell the stock if you anticipate a decline.

 

 

 

Step 7: Monitor Your Position And Close It

 

Once you have opened your position, you can monitor your profit and loss in the trading platforms 'positions' section.

 

Trading is purely based on speculation, so you have to keep a tab on silver market news and perform technical analysis to identify key turning points in the market.

 

You can click close' when you decide to exit your position.

 

 

4. How Much Is A Kg Of Silver In Australia?

 

The price of Silver in Australia was on the 4th of January 2023 as follows:

 

(Date: 4th of January 2023)

 

  • 1 Kilogram of Silver - 1,136.25 AUD

  • 10 Kilogram of Silver is 11,362.51 AUD

  • 50 Kilogram of Silver is 56,812.56 AUD

  • 100 Kilogram of Silver is 113,625.12 AUD

  • 1000 Kilogram of Silver is 1,136,251.19 AUD

 

 

5. Is Silver A Good Investment In Australia?

 

Here are the four main reasons that make silver a popular investment in Australia:

 

  1. Silver is a constant-demand commodity with several industrial uses. Its unique properties make it a key element in many practical applications, such as batteries, LED chips, electrical switches, solar panels, dentistry, water purification, and medicine. 

  2. The supply of this precious metal is finite.

  3. It has a continually-rising intrinsic value. 

  4. Considering the opposite movement of its price to the changing currency values, many traders use silver to hedge their investments against inflation and currency devaluation.

 

 

However, before you invest in this valuable metal, it is worth considering the following:

 

  • It can be risky to store physical silver at home, and it is chargeable when stored in a safe deposit.

  • Buying physical silver at an online dealer can lead to fraud.

  • Environmental and political events can cause price fluctuations as the refining, mining, and trading process become costly.

 

 

6. What Is The Safest Way To Buy Silver?

 

 

Investing in Silver ETFs is generally safer than individual stocks, as they are less susceptible to market ups and downs.


On the other hand, when you venture into silver futures, you face a substantial risk of financial loss if you make the wrong decision.


While Silver bullions are less influenced by market fluctuations, storing them physically can be inconvenient.

 

Furthermore, buying silver in its physical form often involves paying higher prices. Additionally, there's a risk of scams when purchasing silver online.

 

 

7. How Much Silver Can You Buy Without Reporting In Australia?

 

Though silver and gold are exempt from reporting requirements in Australia, you may require to report any transactions that involve cash over ten thousand dollars.

 

In Australia, you can buy gold bullion in quantities below $AUD 5,000. It implies that you don't have to report if you buy physical gold for less than $AUD 5,000.

 

However, if you buy or sell gold worth $5000, you must report it to the government.

 

 

 

8. When Is The Right Time To Buy Silver?

 

Silver can be an excellent investment opportunity for any investor who wishes to diversify or hedge against varying market conditions in their portfolios.

 

Like any investment, the right timing to buy silver depends on the present market and your investment objectives.

 

After the longtime gold rush in the Australian market, economic analysts have been bullish on silver for the past decade. They expect a steady rise in the price of silver bars within the next few years. (Past performance does not guarantee future results.)

 

Due to the favourable future outlook of silver, wise investors are looking to Australia for their silver picks. Silver is a much more attainable buy at only a fraction of gold's valuation.

 

Always seek the help of a professional financial advisor before making any investment decision. Investing carries risk. The above information is for educational purposes. This is not financial advice.

 

 

9. When Is The Right Time To Sell Silver?

 

The right time to sell silver depends on your need to access funds.

 

The best part of investing in precious metals like silver is that you have several ways to sell your investment at the current spot price plus a premium.
 

The premium varies for each product and depends on the metal type and bars' weight. In most cases, the premium remains the same except when there is a shortage of precious metals and the demand for silver increases.

 

If you don't need funds urgently, you could wait until the silver market is strong. You may get a higher price when you sell your silver investment.

 

Always seek the help of a professional financial advisor before making any investment decision. Investing carries risk. The above information is for educational purposes. This is not financial advice.

 

 

 

10. Frequently Asked Questions (FAQs)

 

 

What Is The Cheapest Way To Buy Silver In Australia?

 

  • Silver is usually sold as per its spot prices. However, if you want to buy it cheaper, you can consider buying junk silver coins. 

  • These coins come in varying levels of silver content from 35 to 90 per cent, and you often get them for less than their spot price. Their' melt value' determines their market value'. Most of these coins attract investors, enabling them to buy silver at low prices.

  • Where bullion coins command a 10% to 15% premium over the spot price, junk silver coins are available at just 1% to 3% over the spot price.

 

 

Is Silver A Legal Tender In Australia?

 

Yes. Perth Mint is a reputable dealer that offers an extensive array of quality collectible coins with 99.9% pure silver. Its weight and purity ensure it is legal tender.

 

Their premium quality coins come with a legal tender status that shows the Commonwealth Government of Australia guarantees their precious metal content.

 

Perth Mint is a possible place to buy Silver in Australia, where you can purchase silver in various sizes, finishes, and weights to suit your budget. Their 1,000oz silver bullion bars have the brandmark and a serial number.
 

The current Perth mint silver price is 37.15 AUD. (Date: 27/07/2023)

 

  • 1-ounce silver coins – The Perth Mint 999 and 9999: $34.21 

  • 1-ounce silver minted bars - $33.51

  • 10-ounce silver cast bars - $335.07

  • Accredited Bullion per fine ounce - $30.16

 

Alternatively, you can buy silver stocks online to avoid storing the precious metal at home with the same advantage of owning the asset.
 

If you still need a trading account to buy silver stocks, consider eToro, which is used by many investors in Australia and worldwide. You can create an eToro trading account HERE.

 

The trading platform offers extensive trading features, social trading tools, and copy trading to imitate the trades of other famous traders.

 

(eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged. Not suitable for all investors. Capital at risk. See PDS and TMD)

 

 

 

Should You Buy Silver Bars Or Coins?

 

While buying silver for investment purposes may seem risky, it can be a practical solution for wealth protection. Both silver coins and bars are great ways to complement your silver holdings and diversify your investment.

 

Silver coins offer greater liquidity and divisibility than silver bars, which makes them convenient to buy and sell. They are legal tender and come with a quality guarantee from the issuing government. It makes them a relatively safe investment that you can sell at a reasonable price when times get tough.

 

On the other hand, silver bars have lower production costs, giving investors a better opportunity to make significant monetary gains. They are better than coins for investors making bulk investments worth thousands of dollars.

 

Their value depends on the bullion spot price, which changes with the market. Additionally, you can use bars to fund an Individual Retirement Account (IRA).

 

Consider your long-term investment objectives to determine whether silver coins or bars will better meet your needs. Whichever mode you choose, consider insuring it against natural disasters or theft.

 

Also, ensure you buy silver bullion (bars or coins) only from reputable dealers to ensure the security of your assets.

 

 

Is Silver Bullion A Popular Investment?

 

Silver bullion is one of the popular ways to get exposure to physical silver. It refers to high-purity silver with at least 99.5% pure silver. Investing in silver bullion can benefit you in the following ways:

 

  • The simplest way to start silver investing

  • It is cheaper than other precious metals like physical gold, so you can get started for less.

  • Silver bullion can sell at a premium in comparison to the spot market

  • It usually delivers inflation-beating returns over the long-term

 

The only downside of this investment is security risks and arranging for a safe place for its storage. However, nowadays, many banks offer affordable locker facilities for investors to keep their valuables easily.

 

For profitable purchases, make sure you buy silver bullion by weight regardless of whether it's in the bar, coin, or any other form.

 

 

Can You Sell Silver To The Bank?

 

You can only buy silver from banks but can't sell it to them.

 

 

 

How Much Silver Is Left in The World?

 

In 2022, the total silver supply worldwide amounted to over 1 billion ounces. The global silver supply in 2023 is projected to amount to approximately. 1.03 billion ounces.

 

 

Do You Pay Tax on Silver in Australia?

 

If your investment-grade bullion has increased in value when you sell it, you might be subject to capital gains tax.

 

It's worth noting, though, that the sale of investment-grade bullion doesn't incur Goods and Services Tax (GST).

 

 

Can Silver Be Sold for Cash?

 

Yes. You can sell your physical silver to silver dealers in Australia at competitive prices.

 

Check out the link here for an estimated cost for your silver investment at Melbourne Gold Company.

 

While several jewellers and pawn shops charge a refining fee when selling silver jewellery, Southern Cross Gold Buyers don't charge any such fee. So, you can cut the intermediary out and get the most money for your silver.

 

 

How Much Silver Can You Buy Without Reporting in Australia?

 

The Australian Transaction Reports and Analysis Centre (AUSTRAC) supervises the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 for monetary instruments, including precious metals like silver.

 

The Australian Border Force may require a silver importer or exporter to complete the? AUSTRAC Cross-Border Movement of Monetary Instruments if:

 

  • The consignment comprises precious metal coins classified as legal tender, and

  • The combined consignment value (including all BNIs and physical currencies exceeds AUD10,000.

 

 

 

Is 1-Kilo Silver Bars a Good Investment?

 

Silver bars are a valuable and popular investment asset for various reasons. They help diversify one's portfolio, stabilise investment, and hedge against inflation.

 

If you buy IRA-approved silver bars, you can expect your investment to multiply over the next few years. Moreover, lesser design work and polish make them cheaper than other forms of physical silver, like silver bullion coins.

 

For instance, a one-ounce coin may have a 19% premium over the silver's spot price compared to a silver bar with a 7% premium. 

 

Investors should note that branding affects the silver bar price. You should expect to pay more upfront if you buy silver bars from prominent companies such as PAMP Suisse, the Royal Canadian Mint, or Engelhard.

 

So, is a 1 kg silver bar a good investment for your portfolio? It can be a good investment for investors who want to:

 

  • Boost their retirement funds

  • Like the benefits of owning tangible investment assets

  • Want to hedge their investment against present economic conditions

  • Look to diversify their portfolio holdings

 

Thus, owning silver pieces may offer a range of benefits. Still, they have their risks, including price fluctuation, theft, and supply and demand risks.

 

Investors should make investment decisions based on their risk tolerance, current investment objectives, and their assets' diversity.

 

Always seek the help of a professional financial advisor before making any investment decision. Investing carries risk. The above information is for educational purposes. This is not financial advice.

 

 

Will Silver Go up in The Next Five Years?

 

With a yearly output of 42.9 million ounces in 2021, Australia is the fourth largest producer of silver globally.

 

It is the country where silver mines continued to thrive even during the COVID-19 pandemic, when most of the world witnessed a slump in precious metals.

 

The country boasts more than a dozen silver-mining companies that include South32 and Silver Mines, Newcrest Mining (ASX: NCM, TSX: NCM, OTC Pink: NCMGF), Investigator Resources (ASX: IVR) and Golden Deeps (ASX: GED)

 

The continued rise in global demand for silver, the opening of new silver mines, and booming production potential indicate the value of precious metal will stay strong and may reach new heights in the next five years. 

 

However, keep in mind markets are unpredictable, and always seek the advice of an independent financial advisor before making any investment decision. Investing carries risk. There is no guarantee that the silver price will go up in the future.

 

(Past performance does not guarantee future results.)

 

 

 

How To Buy Real Silver in Australia?

 

Follow the below steps to invest in real silver in Australia:

 

Step 1: Decide the type of silver that is right for your investment portfolio.

 

Step 2: Shortlist your available options based on how much you can afford.

 

Step 3: Decide the size and weight of silver you wish to buy.

 

Reputed precious metal dealers usually sell silver coins in standard weights such as single, five ounces, and ten ounces. Minted bars usually come in varying sizes. Smaller bars may only be one or two inches, while larger bars could be over 9 inches long.

 

Note that the silver bar's value comes from its purity and weight. Large silver bars aren't always better if they have lower silver content than smaller ones.

 

A large bar may cost you more due to storage limitations, composition, and logistics concerns. Also, if you wish to amass more silver with time, starting with smaller weights and gradually growing your investment is the right way.

 

 

Step 4: Find a Silver Dealer

 

Beware of fraudulent dealers who may try to sell you silver products with low fineness grades that are useless for investment.

 

Choose only established precious metals dealers so that you enjoy the best bullion deals without worrying. Some of the recommended dealers to buy premium silver coins and bars are:

 

  • ABC Bullion

  • Melbourne Gold Company

  • Gold Bullion Company 

  • Southern Cross Gold Buyers

  • Melbourne Mint Australia

  • Gold Stackers Australia

 

 

Step 5: Check About The Silver Storage Solution

 

Keeping your silver investment safe is a significant concern. In most cases, you may need to arrange your storage solution.

 

Professional silver handlers offer storage solutions that secure your investment product in a 24*7 supervised facility. Some banks and private mints arrange storage facilities for heavier products.

 

 

 

How To Buy Silver In Melbourne?

 

Australian Bullion Company is the city's most reputed wholesaler and retailer, allowing you to buy and sell LBMA-accredited ABC Bullion silver bars affordably, safely, and conveniently.

 

Features

 

  • Easy access to gold and silver metal bullion

  • Facility to place future buy orders

  • Ability to buy and sell precious metals in real-time and over the phone

  • Provide storage accounts for buying and selling precious metals in physical form

  • Immediate cash payment on all types of bullion purchases

 

 

How To Buy Silver In Brisbane?

 

Gold Bullion Australia (GBA) is a one-stop shop for all your silver investment needs.

 

It is an Australia-owned business that has been offering the facility to buy, sell, stock and store all kinds of precious metals for investment, collection, trading, or Superannuation.

 

In partnership with Gold Bullion Australia Treasury Reserve, GBA ensures an insured secure storage service.

 

Though GBA regulates the sales of silver bullion, GBATR simplifies all insurance, and vaulting services, which includes the safe transfer of unit purchases and sales between each facility.

 

 

 

How To Buy Silver In Sydney?

 

ABC Bullion, a subsidiary of the Pallion company, is the largest independent bullion dealer in Australasia.

 

It is the only independent Australian bullion dealer to have full LBMA accreditation that testifies them to be a market leader.

 

ABC Bullion produces products at its accredited ABC Refinery. Each silver bullion bar is stamped with trademark and purity, adhering to supreme quality standards.

 

With an alliance with Custodian Vaults, the company offers safety deposit boxes to its customers to help them store valuable items, including Bullion, coins, and other things.

 

Features

 

  • Bullion trading, sales, and buybacks 

  • Pool-allocated precious metals 

  • Bullion for SMSF investment 

  • Logistic solutions for global delivery

 

 

11. Conclusion

 

Silver is undeniably a valuable commodity to invest in.

 

Before buying silver, consider the pros and cons of different silver investment options to make the right buying decision.

 

Always seek the help of a professional financial advisor before making any investment decisions. Investing carries risk.

 

If you still need a trading account to buy silver, consider eToro, which is used by many investors in Australia and worldwide. You can create an eToro trading account HERE.

 

(eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged. Not suitable for all investors. Capital at risk. See PDS and TMD)

 

 

The advice and information on OzStudies.com is in general nature and should not be seen as a replacement for independent financial advice. We strongly encourage readers to consult with financial experts regarding their own financial decisions and investments.


Please note that the information presented on OzStudies.com is solely for educational purposes. Every individual's financial situation is unique, and the products and services we mention may not suit everyone. We do not provide financial advice, advisory, or brokerage services nor endorse buying or selling specific stocks or securities. It's essential to know that information might have changed since publication and past performance does not guarantee future results.

 

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