How To Invest In Silver In Australia: A Complete Guide

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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1. Reasons To Invest In Silver

Here are some convincing reasons why investment in Silver is worthwhile:

• 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?

If you are interested in buying silver, here are some trusted ways you can do it:

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 and make a profit/loss based on the price movements.

Besides potential higher returns, you can also gain from corporate actions like dividends.

Some of the top companies operating in silver mining include:

• South32 (S32)

• Newcrest Mining (NCM)

• Golden Deeps (ASX: GED

• Silver Mines (SVL)

• Investigator Resources (ASX: IVR)

Though you get several companies to choose to invest in, stock-based investment is purely speculative and prone to market fluctuations.

Invest In Silver ETFs

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

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 are a fast, convenient, and safer way to buy, sell and trade in Silver and give you broader exposure than you would get from a single position.

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

Buy Silver Futures Or Options

Silver "Futures" are contracts you use to exchange the metal at a special price on a future date. You pay today's prices for the asset that you get in the future at the prevailing rate.

Both buyers and sellers involved in the contract must maintain their end of the deal. You book a profit when the futures contract price rises between when you buy it and the contract expiry date.

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 the right to "option holders" to trade Silver for a specified price on a fixed date. Where 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 the best 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.

As silver coins are often costlier per gram than silver bars, you must evaluate how much you pay by weight before you buy them. There are two considerations when choosing this investment strategy.

Firstly, you sell physical Silver at a premium price than the spot market price, and finding a buyer who can buy it at this price takes a lot of work. Secondly, its storage can be a concern.

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

The current price of Silver in Australia based on its weight is as follows:

• 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

4. 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.

5. Is Silver A Good Investment In Australia?

Four main reasons that make silver a good asset for a long-term investment profile:

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 things:

• 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. Is Silver 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 the best 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 come with the brandmark and a serial number.

The current Perth mint silver price is 36.26 AUD.

• 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

Besides serving as an excellent investment tool, you can trade Not just their silver bar bullions internationally to gain higher returns.

The Perth Mint also offers a secure depository/ vault to make your gold storage convenient and safe. With each purchase, you receive a Perth Mint Certificate that assures you that the Western Australian Government backs the safety of your investment.

7. Should I 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.

8. What Is The Safest Way To Buy Silver?

Silver ETFs are relatively safer than individual stocks as they are less vulnerable to market fluctuations. When dealing with silver futures, you are at a significant risk of losing much money if you make a wrong choice.

Silver bullions are less affected by the market, but their physical storage can be inconvenient. Moreover, purchasing silver in physical form requires paying premium prices. There is also a risk of deception if you buy it online.

9. 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.

10. How To Buy Silver Stocks In Australia?

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

Here is a step-wise guide to help you trade or invest in silver stocks.

Step 1: 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.

Step 2: Choose Silver Stocks

Once you are sure it is the right time to buy silver stocks, the next step is to identify companies that operate in the silver industry, particularly in mining and production.

Once decided, you can take ownership of the underlying shares of those companies. In addition, you will also get other benefits such as voting rights and dividends.

Step 3: Decide Whether You Want To Invest Or Trade

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 capitalize 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 4: Create Your Silver Investment Or Trading Account

Once you have chosen the silver stocks and the right buying strategy, it is time to dive into the market by opening an account.

All you need to do is to fill out an online application form to start CFD or share trading in no time. If you are a newbie and want to avoid trading with real money, you can use a demo account until you gain confidence and the necessary skills.

If you don't have a trading account to buy silver yet, we recommend the best broker for Australia and worldwide, eToro - You can create an eToro trading account HERE.

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

(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)

Step 5: Place Your First Trade

You can use a 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

Place a trade on the buy or sell side of the underlying price of a silver stock or ETF to earn from the price difference.

Buy the stock if you expect the market value of the stock will rise in a given timeframe, and sell if you think it will 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.

11. 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

12. 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.

13. 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.

Other Features:

• Bullion trading, sales, and buybacks 

• Pool-allocated precious metals 

• Bullion for SMSF investment 

• Logistic solutions for global delivery

14. Conclusion

Silver is undeniably a valuable commodity to invest in for long-term gains.

Make sure you consider the pros and cons of different silver investment options to make the right buying decision.

If you don't have a trading account to buy silver yet, we recommend the best broker for Australia and worldwide, eToro - You can create an eToro trading account HERE.

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