Silver, along with gold, platinum and palladium, are the most recognized precious metals used not only for industrial and commercial applications but also as tool for investments.
As one of the leading metal used for manufacturing industrial materials, the value of Silver fluctuates more than gold depending on its demand as dictated by new innovations in the world.
However, with the continuous demand for electrical appliances, other industrial items and medical products to microcircuits, batteries, superconductors and the likes, the stature of silver remains a much sought-after commodity—thus making it retain a high value in the market.
Thinking of trading silver with eToro?
77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
History of Silver
Silver is among the seven so-called “metals of antiquity”. Meaning, it is already in existence dating back to prehistoric humans and its exact time of discovery is unknown.
During the period from 15th-century BC, silver was more expensive than gold in Egypt, until the discovery of cupellation—a refining process in metallurgy that allows the separation of metals like gold and silver from base metals—in 3rd century BC.
Today, silver is mostly mined in Mexico and Peru with a balanced supply comprising 1/5th of the world's supply of Silver coming from recycling methods and the rest from new production.
The value of silver is quoted in “Troy Ounces”. Each troy ounce is equal to 31.1034768 grams. The price of this precious metal is determined by numerous international banks.
How to Invest in Silver
Other than buying the physical silver metal itself, you can also invest on this commodity through these following ways:
- Invest on mutual funds, ETFs, ETNs and CFD trading
- Buy silver bullion (investing by possessing an actual silver metal in silver coin form)
- Invest on mining stocks
- Invest on silver streaming companies
Trade / Invest Silver on eToro
Silver is available for investment on the social trading platform eToro. You can use these two vehicles to buy and sell silver: Silver CFD and Silver ETF.
How About Silver ETF?
ETFs or exchange traded funds are a type of security tracking a sector, an index, or a commodity that can be bought or sold on a stock market in a similar manner as a normal stock.
To invest on silver ETF with eToro, you need to do the following:
- Click “Discover”.
- Select “ETFs”.
- Scroll down and look for SLV (iShares Silver Trust).
- Select BUY or SELL.
- Enter the amount you wish to invest.
- Review and set the stop-loss, leverage and take profit parameters.
- Click on "Open Trade" to execute the order.
SLV (the iShares Silver Trust) is an exchange traded fund (ETF) tracking the value performance of the underlying holdings in the London Silver Fix Price. Currently, the SLV has an asset of more than $7.8 billion and is producing an average yearly return of 0.46% since its inception in 2006.
What is Silver CFD?
A popular way of speculating on the price of silver is through CFD (contract for difference). CFDs permit investors to speculate on the price of silver and other precious metals without needing to own or buy a physical silver asset. The value of CFD is the difference between the price of the investment tool (in this case, silver) at the time of purchase and its current value.
Here’s the deal: eToro is a popular trading platform where an investor can engage in silver CFD trading.
How to Start CFD Trading of Silver?
There are several ways of engaging in CFD trading of silver. All you need to do is find a reliable broker or CFD trading platform such as eToro to open an account and deposit your fund.
Trading silver in eToro's CFD trading platform doesn't require any storage fees since you won't be trading any real silver bars.
How to Trade Silver in eToro?
- Create an account on eToro / Log-in your account for existing users.
- Click "Discover".
- Select "Commodities".
- Choose “SILVER”.
- Select BUY or SELL.
- Key in your desired amount to invest or the number of silver units you want to trade.
- Review and set the stop loss, leverage, and take profit parameters.
- Select “Open Trade”.
Advantage of Investing in Silver
Despite being a more volatile precious metal than gold, there are a number of upsides in investing in silver. Here are some of them:
- It has a high usage and demand in several industries on the rise especially for industrial, medical use and even in jewelry creation.
- It has achieved an average of 10.2% growth in the last 30 years, outperforming several fixed deposits and commodities like Gold.
- It is normally unaffected by economic inflation.
- It is both affordable and consistent.
Why Invest in Silver?
Silver if compared to gold is more affordable hence making an investor invest more amount of Silver in exchange for less money. This reason makes silver a popular investment option for lower capitalization investors.
Although seen as more volatile than gold, silver has the potential to be a lucrative investment tool because of its tendency to have sharp upward value movement. This is because silver is considered a smaller market as compared to the yellow metal.
When likened to stocks, silver is regarded as a more stable investment especially during uncertain economic conditions.
Simply said: Silver has its own share of risks and upsides. As an investor, you need to thoroughly do your homework in studying market trends and the position of silver in the global market.
Ready to trade silver with eToro?
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
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