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Investing in Silver - A Guide

Silver offers investors a very different opportunity to that of gold. Where gold can offer a mix of both short-term gains and long-term stability, silver is more speculative, with greater price volatility. Silver premiums also tend to be higher than other precious metals, affecting the price increase needed before reaching a profit.

Despite this, silver is a great place to put your money. Silver is far cheaper than other precious metals making it an ideal starting place for new investors or offering an extra feather in the cap for investors with existing portfolios. Typically, silver prices are reasonably static in a bear market (downward trend) but the point of opportunity is the upturn; demand surges - from industry or because gold is too expensive - mean that silver traditionally experiences the most significant price rises of the bullion metals.

As with any investment, information is key – researching all of your options, and making the right choice for you and your money is vital. Below we’ve compiled a detailed guide for anyone looking to invest in silver.

If you should have any further questions though then please feel free to call us on 0121 634 8060 or email our friendly and knowledgeable customer services team at support@bullionbypost.co.uk.

Should you buy silver?

One of the most commons questions we hear from investors is should they buy silver? There are a lot of options out there when it comes to investing, and even within the precious metals market you can choose between gold, silver, platinum or palladium. With all of these choices, why buy silver?

Ultimately, each individual will need to decide which investment suits their goals and risk appetite the best and whether they should buy silver.

One of the key attractions in silver for investors is the price. As of 2024, an ounce of silver would cost you roughly £19. When compared to gold’s £1,600 per ounce, or platinum's £715 per ounce, silver represents a much lower initial outlay. This immediately attracts investors who might not be looking to risk at least £1,000 or more straight away. If you’re new to investment, or prefer the lower exposure, then this reduced cost is a great reason to invest in silver.

Similar to gold, silver tends to weakly – or negatively – correlate with a lot of other commodity markets. Over the course of the financial crisis between 2008 and 2011, silver saw its price grow significantly (277%). Although that price has come back down, its easy to see the attraction for someone with the market knowledge to take advantage of rises like these.

Silver Price Chart

Lastly, having a diverse portfolio is the ultimate way to protect your wealth. Investing everything in one single commodity means that all of your money depends on that commodity. Should that market experience a crash then your investment goes with it. By spreading your money across several markets you reduce the risk significantly and, as mentioned above, silver can perform well when other markets do badly making it a great way to diversify your portfolio.

Investing in silver for beginners

If you are a beginner with silver investments it can seem overwhelming to take the first step: what silver should you buy? How do you buy silver?

Buying physical coins or bars is the recommended way to invest in silver in our opinion. Taking physical ownership of silver gives you the best control over your investment and allows you to sell it as and when you please. There are other choices however, such as silver ETFs and other forms of paper investments.

Learn more about the various ways to invest in silver.

Once you have decided on buying physical silver from a dealer, such as BullionByPost, then you need to choose between bars and coins. Both have a variety of choices available, and this can have an effect on the price you pay and the price you could sell at.

The beauty of a silver coin or bar is that the small size means storage can be handled personally. Displaying a silver coin or bar at home will certainly garner the attention of your friends and family. For larger amounts though, secure storage is a popular alternative. A home safe or safety deposit box can keep your investment protected against the risk of damage or theft, but BullionByPost offer easy-to-arrange secure storage if you want the ultimate peace of mind. For a small monthly fee you can store your silver with Brink’s – one of the top security firms in the world – so you can rest assured your silver bullion is fully insured and protected.

Read more about our storage options.

How to Buy Silver

If you’re used to shopping online then you are more than ready to make your first silver investment. Buying silver is a very simple process. At BullionByPost we have an easy-to-use online system that allows you to purchase silver with just a few clicks, and have it delivered to your door discreetly.

If you find yourself struggling, or have any questions, then our dedicated team of customer service professionals are always happy to help and can assist you in setting up your order.

View our step-by-step guide on how to buy silver online from BullionByPost.

Most Popular Silver Investments

At BullionByPost we stock a wide range of silver products, some for investment, some for collectors, and others that fit into both. The most popular silver investments however are those that offer the cheapest ways to buy silver, helping to maximise your investment money.

View our top 5 silver investment products.

Silver bars typically offer investors the cheapest way to buy silver when buying in large sizes. Silver coins are produced to high standards, featuring intricate designs, which increases the manufacturers costs. Bars on the other hand are normally cast, meaning lower production costs and lower premiums.

There are two types of silver bar: cast and minted. Cast bars have a slightly rougher finish, while minted have a very crisp and polished finish, but both contain the same amount of pure silver.

Silver bars come in a range of sizes, from 2.5 grams to 5 kilo bars. Which to purchase will depend on your budget and investment requirements.

1oz Silver Bars

In Stock

Silver coins, on the other hand, are often of higher quality (like minted bars) and feature varying designs according to the mint that produced them. The collectability of these coins sometimes makes the price higher than the quantity of the silver it contains. For smaller sizes however, the mass numbers of these coins keeps their premiums to a minimum. Major national coins like the silver Britannia for example will often be the cheapest way to buy an ounce of pure silver in the UK, and is our most popular investment product.

Silver Britannia

In Stock

Alternatively, we offer VAT-free silver Britannia coins, or 1kg silver bars stored securely with Brinks in Switzerland. If you choose to store your silver in Zurich, it will be exempt from VAT, reducing the cost significantly. You could also consider second hand silver coins, which can be sold at reduced premiums compared to new. View our second hand silver coin range.

As a legal tender coin in the UK, the Silver Britannia is also exempt from Capital Gains Tax (CGT) when you sell. As long as you don’t take delivery of your coin you can maximise the profits on your investment, but if you do take delivery then you will need to pay the VAT.

Read more about our VAT-free silver.

Sell Silver

Whether the price is high, or because you want to liquify your assets, the time will come in any investment when you decide to sell. At BullionByPost we can buy back your coins or bars and offer competitive prices – all with the same ease and convenience as purchasing your silver.

Should you also have any silver jewellery then you can ask for a quote on our scrap silver prices.

With careful judgement of the information available, silver could be the perfect way for you to protect your wealth and build a diverse portfolio.