How Do You Invest in Silver Stock?


Quick Answer

According to Bankrate, there are two ways in which an investor can purchase silver stock. The stock can be purchased either by buying into an exchange traded fund (ETF) or by purchasing stock in a silver mine. Neither method gives an investor physical ownership of the actual metal itself, but will allow a higher level of liquidity than purchasing silver bullion.

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Full Answer

An ETF is a fund that tracks the price of silver. By purchasing shares in an ETF, a silver investor can purchase shares representing the value of silver at the prevailing market prices. As this value changes, so does the fund. To own a bit of silver without physical possession of the bullion, an investor can purchase shares in silver mines around the world. These shares operate like any other company shares, with movement of the stock price directed by the overall profitability and worth of the company. The largest drawback of silver mine shares however, is that the share price covers all operations of the company and can prove more volatile than the changing price of the silver mined. The price of silver can rise for example, but the investment may lose money due to company mismanagement. Both ETFs and silver mine stocks are available for purchase through most discount brokerages.

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