What You Need to Know About Investing in Silver in Canada

Silver jewelry, Canada

Investing in silver has a lot of potential. Though it rarely gets the same kind of attention as gold prices in the media, silver prices tend to move in tandem with gold but with more momentum. For investors who want physical bullion, silver is also more affordable and easier to buy in higher volumes, thanks to the much lower price per ounce.

Before you buy physical silver, here’s what you need to know about silver for beginners.

Where to Buy Physical Silver?

If you want the best price on silver or gold, you want to go somewhere that deals in high volumes. That may mean finding the biggest market available. In Canada, major cities like Toronto tend to offer the best prices and most variety.

When you want to buy silver in Toronto, the best place to look is a bullion dealer. Bullion dealers sell gold and silver bars and coins sourced from mints and refiners such as:

  • Royal Canadian Mint
  • US Mint
  • Valcambi
  • PAMP Suisse
  • Royal Mint
  • Perth Mint
  • And more

A bullion dealer is the safest way to buy authentic silver coins and bars. If you don’t live in a major market like Toronto, you can also buy bullion online.

What Kind of Silver Should You Buy?

With so many silver products on the market, it’s not easy to know what you should buy. Many beginners think that the secret to successfully investing in silver is finding rare coins that will take on numismatics value later. However, the collectibles market is unpredictable and complicated, much more so than bullion.

Fine silver coins and bars are the best option for beginner investors. Look for products that are .9999 silver bullion or 99.99% pure silver.

The most common weight available tends to be 1 oz coins and bars. However, when you buy heavier bars, such as 10 oz or 1 kg silver bars, you may be able to save on premiums.

What Kind of Growth Potential Does Silver Have?

Unlike investing in stocks or bonds, where you buy part of a company or lend it money, silver doesn’t generate a product or service, and there’s no interest or dividends paid for owning the metal. It’s a commodity that has value in itself, which makes it more of a speculative investment. You’re betting on the idea that prices will go up before you want to sell it.

Fortunately, there is only so much silver in the world, and production is falling due to depleting ore reserves in a world where precious metals are increasingly scarce.

  • Production has fallen every year for the last four years.
  • Solar power and 5G infrastructure are increasing industrial demand for the metal.
  • Uncertainty about the delta variant of COVID-19 and the spread of the virus around the globe continues to hamper global economic growth.

For these reasons, silver’s long-term prospects are generally positive. It’s an investment that has the potential to pay off big gains down the road.

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