How to Invest in Silver Commodities

Silver is a valuable and highly conductive white metal obtained from mining that has been used in a wide variety of jewelry making, medicinal, industrial and coinage applications.  World production of silver was over the 710 million ounces level in 2010, and major silver producing countries include Mexico, Peru, China, Australia, Chile, Russia, Bolivia and the United States.

Along with its even more precious yellow cousin, gold, silver has remained popular as an investment vehicle and has served as a safe haven store of value, especially during times of severe financial and geopolitical crises, such as hyperinflationary periods and wars.

Silver futures contracts have been actively traded on commodity and metals exchanges for many years and are actively used as hedging vehicles by silver producers and industrial users.
Nevertheless, some investors are put off from dealing futures contracts by the large lot sizes, exchange fees and the risk of having to deal with physical delivery.

Fortunately, learning how to invest in silver is now easier than ever, thanks to the proliferation of silver related investment products.  For example, another popular way how to invest in silver without worrying about physical delivery involves purchasing silver mining stocks or silver linked exchange traded funds or ETFs via your stock broker.

Also, many online forex brokers now offer traders the opportunity to buy and sell spot silver contracts with a relatively low minimum deposit. In some cases, the forex brokers even allow clients to trade the metal on a leveraged basis.

Another way to invest in silver is the actual purchase of physical silver for investment purposes, typically in the form of bars, coinage, jewelry or fine items. Although this type of investment typically requires a form of safe storage facility to hold the valuable silver items securely, it is thought to provide the security or safe haven that some investors are seeking to help protect their savings in case of severe crisis situations where paper currencies lose their value.
By InvestorGuide Staff

Copyrighted 2016. Content published with author's permission.

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