How to invest in silver: 6 ways to buy this precious metal

But silver is far from a foolproof answer to inflation or recession. It comes with nuance that you won’t find with other metals used more purely as a way to preserve purchasing power.

Let’s take a look at six popular ways to invest in silver, from physical bullion to silver IRAs to paper silver.

What to know before investing in silver

When it comes to investing in precious metals, silver is more of an outlier than, say, gold or platinum. Many popular metals are used primarily as a store of value, but silver is more multi-purpose. In addition to its reputation as a “wealth preserver,” it’s also used in industry, from handheld electronics to electric vehicles to solar energy.

Because silver’s value can be affected by specific industries, it’s more susceptible to spikes and drops than metals that are used more exclusively as an asset that simply preserves value. It tends to track more closely with economic performance than gold. After all, more than 50% of silver demand has historically been for industrial use.

Still, it can act as a hedge against inflation thanks to its intrinsic value (though nothing is guaranteed, of course). And because it trades considerably cheaper than other more premium metals, it’s viewed as more accessible for the average investor.

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6 ways to invest in silver

There are several ways to invest in silver, each with varying levels of exposure. Here are several of the most popular options.

Physical silver

Investing in physical silver means you own the actual metal. You can store it yourself, or you can have a third party store it for you.

Physical silver can be more expensive to store than the same value of metals like gold and platinum, as it’s worth considerably less per ounce. That means you’ll need to use a larger amount of real estate in a vault, safe, etc.

There are three primary physical silver investments:

• Bullion: These include silver bars and rounds with extremely high purity. Investment-grade silver is generally 99.9% fine. Investment-grade silver is easier to buy and sell, as it’s easier for dealers to know exactly what they’re getting.
• Collectibles: Rare coins and similar items can be worth more than just their silver content. They aren’t always investment-grade, but their scarcity can make them trade at considerably higher than finer bullion.
• Junk silver: Silver coins with a lower purity than investment silver (think 90%) and no collector demand that adds value beyond their silver content can generally be sold to dealers based on melt value.

You may also consider jewelry and other low-purity silver knickknacks to be an investment. But, buying such items tends to run higher due to the cost of branding and labor, so don’t expect to turn around and sell it for what you paid.

Paper silver

Those not interested in owning physical silver can opt for paper silver. It’s a way to get silver exposure through investments such as:

• Silver-backed ETFs: These funds hold silver (among other things) which you can buy and sell like a stock.
• Silver mining ETFs: Instead of investing in silver itself, you’re buying funds composed of baskets of silver mining companies. Your investment is dependent on company performance, which is also often tied to how silver is doing.
• Silver funds: You can pay someone else to manage and choose a variety of silver investments, from bullion to mining stocks.

Paper silver can be more affordable, as you won’t have to pay to store the metals yourself. It can also be easier to trade than physical silver.

Digital silver

Similar to paper silver, digital silver requires no storage and is easy to trade essentially instantly. It’s effectively a claim on silver with a company that promises to keep it for you. If you want the silver at any time, you can often request delivery.

Digital silver is riskier than physical silver because if the company storing your metals fails—or if it doesn’t actually hold the metals it claims, you could lose your investment.

Silver stocks

Silver stocks are related to ETFs in that you’re investing in silver-adjacent companies rather than the metal itself. The difference is that ETFs include a variety of companies which diversify your investment. Stocks do not.

Buying a silver stock is betting on a single company. It comes with higher risk, but the upside can also be higher. If you’re confident in a specific company, you may decide to focus your funds. And unlike many other silver investments, many companies pay dividends to stockholders.

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Silver retirement accounts

Just as you can deposit money into your retirement account, you can also deposit silver into an IRA or 401(k). Either purchase new silver for your accounts (beholden to the same annual contribution limits as cash) or use your existing retirement funds to buy silver.

When investing silver into a retirement account, it must be kept with an approved custodian. Retirement-eligible silver must also meet the following requirements, per the IRS:

• Silver must be 99.9% pure or above. A lower purity will not be accepted by an approved custodian for your retirement account.
• Only approved forms of silver can be invested into your retirement account. Silver must be in an IRA-approved form, such as coins by a recognized manufacturer/government mint or bullion bars.

Some examples of eligible forms of silver are:

• American Silver Eagle Coin 
• Canadian Silver Maple Leaf Coin
• Austrian Silver Philharmonic Coin

Our guide to the best silver IRA companies gives you more information about investing retirement funds into precious metals. It takes the legwork out of finding the top companies for your goals.

Silver trading

Silver tends to do best for those who are patient with its ups and downs. Those who think in terms of years instead of days have tended to see their investment increase over the past decade—though there’s no telling what will happen down the line. Still, with silver’s sharp peaks and valleys, some like to play the buy-low-sell-high game with frequency. This practice is called silver trading. It’s risky, but those with some perception (and luck) can do well with it.

Here’s how it works: You’ll buy products that are linked to silver’s price and sell them according to what you think its value will be in the upcoming days or weeks. You can also utilize a practice called “leverage,” which increases your exposure to silver many times over. As an example, with a 20:1 leverage, you can use $100 to invest in $2,000 worth of silver. This makes your money go farther toward your investment goals.

Of course, the risk is that your losses are magnified along with your gains. Losing more money than you’re investing can be devastating. You could end up owing money to a broker.

It should be obvious, but we’ll take a moment to emphasize that this is not a beginner-friendly way to invest in silver.

Pros and cons of investing in silver

How to choose the best way to invest in silver for you

The best way to invest in silver varies by individual. Some have a higher risk tolerance, some prefer a virtually maintenance-free approach, and some prefer the ability to grasp the metal with their own hands.

Here are four simple questions to ask yourself to quickly decide the best way to invest in silver for your situation.

What role do you want silver to play in your portfolio?

Precious metals aren’t something you should push all your chips toward. They play a strong role in keeping your money from devaluing alongside fiat currencies like the U.S. dollar. Though silver has skyrocketed after 2025, it’s not considered a get-rich-quick investment. It doesn’t earn interest, and it’s traditionally underperformed the stock market.

That said, silver companies can result in faster growth than the metal itself when industry is strong and profits jump. Investing in silver in this way can give you a better return—but at the price of forfeiting the “store of value” benefit that comes with focusing on the metal itself.

Are you comfortable with storing physical metal?

Remember the extra expenses that often come with handling physical silver yourself (storage, shipping, potential account fees, etc.). If you’re okay with that, taking delivery of your silver is the most surefire way to lower your exposure to the faults of a third party, from a shaky company to a custodian failure. 

How much attention do you want to dedicate to your investment?

If you’re looking to toss some money toward silver as a sort of insurance policy, you may decide that a silver ETF, digital silver, or even physical silver will suit your needs. If you’re at the opposite extreme, you may favor silver trading or bargain hunting for physical silver with metals dealers. 

How much do you value the ability to quickly liquidate?

If you want the convenience and speed of jettisoning your silver at a moment’s notice, you should likely skip physical silver altogether and opt for silver ETFs and digital silver. Just a few taps on your phone can turn your metal into cash. Selling physical silver will entail finding a buyer, getting a quote, and negotiating a spread.

Should you invest in silver or gold?

Silver and gold play a similar role when it comes to preserving your money’s purchasing power. As previously mentioned, gold tends to be better at this over time thanks to its limited use in industry. It’s essentially less tied to economic demand.

Silver’s added risk also comes with potential for more growth. In the past, silver has tended to outperform gold during major rallies, but it’s also crashed harder afterwards.

Again, the question you have to ask yourself is whether you’d prefer a wealth safe-haven or a potential for growth. There’s also no reason why you shouldn’t invest in both. Just note that experts tend to recommend that precious metals comprise no more than 10% of your whole portfolio.

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The takeaway

You can invest in physical silver, paper silver, digital silver, silver stocks, and more. You can even deposit silver into a retirement account. The ideal investment for you depends on your goals and risk tolerance. It also depends on how hands-on you’re willing to be. Regardless, there’s an ideal silver investment option for you.

Frequently asked questions about investing in silver

Are silver mining ETFs a good way to invest in silver?

Yes, silver ETFs are typically considered a good way to invest in silver. ETFs effectively spread your money across multiple companies, diversifying your investment to help reduce your risk.

How do silver mining stocks compare to owning silver bullion?

Silver mining stocks are riskier than owning silver bullion, but they also can be more rewarding. The stocks aren’t directly related to silver, but rather the success or failure of the mining company. When business is good, your stocks may yield considerably more return than silver bullion—but it may also crash lower.

How much silver should I buy as part of my portfolio?

Experts recommend that you allocate no more than 15% of your portfolio to precious metals, including silver.

Is silver a good investment during inflation or a recession?

During inflation, silver often spikes—making it a sound investment. However, its value is closely tied to industry. If a recession strikes and industries that use silver slows down, it can lose value in a hurry.

How liquid is silver if I need to sell my investment quickly?

The liquidity of your silver depends on the type of investment you have. Digital silver, silver ETFs, and silver funds can generally be offloaded immediately. Physical silver is more labor-intensive, as you must find a dealer willing to buy and then receive a quote.