How to invest in silver in 5 steps

When it comes to precious metals, silver (SI=F) is often overlooked. Compared to gold, it has a much lower price per ounce, so gold gets more attention. However, silver prices have surged over the past 10 years, driven by inflation worries, industrial demand, and economic uncertainty.

If you’re interested in investing in silver, understanding what investment options are available, the risks of investing in precious metals, and where to buy silver is key. Below is a complete guide on how to buy silver, including details you should know before you get started.

• Silver prices rose from $14 per ounce in 2015 to over $72 per ounce by the end of 2025, an increase of 414%.

• You can invest in silver by buying physical coins or bars, stocks, exchange-traded funds (ETFs), or by opening a silver individual retirement account (IRA).

• Silver can serve as a hedge against inflation and a diversification tool, but prices can be volatile.

Silver prices fluctuate constantly based on global supply and demand. As with gold, silver is traded on commodity exchanges, and its price is quoted as price per troy ounce.

Silver’s price was steady for years, but has spiked over the past decade. Its performance in 2026 has continued to be impressive. As of March 16, 2026, silver’s price was $78.32, according to Kitco.

Silver’s price is based on several factors:

• Inflation: Silver and the precious metals can act as a hedge against inflation. When the purchasing power of the U.S. dollar declines, investors typically allocate more money to other assets, such as silver, which can increase demand.

• Industrial demand: Silver is widely used in manufacturing, particularly in the building of electronic, solar panels, medical equipment, and vehicles. As manufacturing activity increases, so does the demand for silver.

• Economic uncertainty: During periods of economic uncertainty, such as stock market drops, higher rates of unemployment, or global conflicts, investors look to silver and other precious metals as safe haven investments, so silver’s price trends upward.

• Consumer demand: Silver is popular for jewelry, collectible coins, and bullion purchases. Strong retail demand from consumers can tighten the available supply and raise prices

Learn more: What to know before buying gold, silver, or platinum from Costco

Because silver is used by the industrial, consumer, and investor sectors, its price tends to be more volatile than gold, with steeper price changes.

There are several ways to invest in silver, each with its own advantages and risks:

Physical silver coins and bars are a popular investment option. You can purchase these coins and bars through online sellers or local coin dealers, and you can physically hold your investment in your hand and store it at home.

When investing in physical silver, it’s a good idea to focus on standardized silver, meaning silver that meets the requirements for individual retirement accounts (IRAs). IRA-approved silver must be 0.999 pure silver. Approved silver coins and bars include:

• American Silver Eagle Coins

• American Silver Eagle Mint Case

• Canadian Silver Maple Leaf Coins

• Johnson Matthey Silver Bars

• Sunshine Mint Silver Rounds

With physical silver, you have some extra concerns: You need to have proper storage and insurance for your holdings.

For those who want exposure to silver without having to buy and hold physical coins or bars, a silver ETF can be a smart alternative. A silver ETF tracks the performance of silver, so its gains and losses will mimic those of physical silver. For example, the abrdn Physical Silver Shares ETF (SIVR) is backed by physical silver stored in secured vaults.

Instead of investing directly in silver, another option is to invest in a mining corporation by buying stocks. Major mining stocks include:

• Buenaventura Mining (BVN)

• First Majestic Silver (AG)

• Pan American Silver (PAAS)

A precious metals IRA is a specialty IRA that allows you to invest in alternative assets like silver. A silver IRA can include silver bullion, gold, or platinum. Silver within an IRA must meet purity standards (0.999 silver), and the silver must be stored with an approved custodian.

Precious metal IRAs are subject to the same rules and tax benefits as standard IRAs.

Read more: What is a gold IRA?

To start investing in silver, follow these steps:

Think about what type of investment you want to make. Physical silver coins or bars are a good option if you want a tangible investment and don’t mind storing it yourself, while stocks and ETFs can be better for those who want more liquidity and convenience.

In general, experts recommend allocating no more than 15% of your portfolio to precious metals like silver or gold. It’s important to diversify your portfolio since silver’s price can be volatile and fluctuate.

Compared to gold, silver is relatively affordable, so it’s easier to buy an ounce upfront. However, physical silver usually involves dealer premiums, which can add to the overall price, so set a budget for investing. Many investors gradually accumulate silver by purchasing a set amount on a regular schedule, such as two ounces every month.

If you’re investing in stocks or ETFs, you may set recurring investments and purchase shares each month.

Depending on what type of silver you invest in, you’ll need to work with a dealer or a brokerage.

Physical silver dealers can be online sellers or local coin shops. Before purchasing, research the company’s reputation using platforms like the Better Business Bureau and TrustPilot, and ask about dealer fees and shipping costs.

For brokerage accounts, pay attention to the platform’s fees or expense ratios.

If you invest in physical silver, security is critical. You can store your silver at home, but you’ll need a strong safe bolted to the floor. Other options include a bank safe deposit box or a professional bullion storage facility.

If you have physical silver, you may also need to add an insurance endorsement to your homeowners or renters insurance policy, or purchase a standalone policy.

Read more: Investing in silver or other metals? Here’s how to avoid a tax hit.

Although silver can be a useful diversification tool, there are two major risks to be aware of.

Silver is subject to both industrial and investor demand, so its prices can be more volatile than those of other precious metals. As a result, its price experiences more severe fluctuations.

For example, silver’s price was $89.93 at the start of the year. But by Feb. 16, its price had dropped to $75.43, about 16% in a few weeks.

Read more: Silver price volatility: What to know and how to invest in 2026

Silver can be less liquid than other investment types. With physical silver coins or bars, you have to find a buyer and pay shipping and insurance fees. By contrast, ETFs and stocks can be sold instantly during market hours.

Over the past decade, silver has performed extremely well, outpacing some major stock market benchmarks like Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) or Invesco QQQ Trust (QQQ)

Silver may have beaten out the market during this time frame, but its performance was less impressive in previous decades, and it’s unclear how silver will perform in the future. As a result, it’s wise to make silver and other precious metals just a slice of your overall portfolio.

Financial advisors and investment professionals say investors shouldn’t put more than 15% of their portfolios into precious metals. The right allocation depends on your risk tolerance, investment goals, and age.

The gold-to-silver ratio is a comparison of the price of gold against the price of silver. In other words, it’s how much silver you’d need to own to buy a single ounce of gold. For example, if gold is $5,000 per ounce and silver’s price is $75 per ounce, the gold-to-silver ratio is 67:1.

Silver can be a good investment if you want a diversification tool or hedge against inflation. However, its price can fluctuate, so it’s best for long-term investors.

The price of silver is impacted by the following factors:

• Industrial demand

• Inflation

• Interest rates

• Supply disruptions

• Investor demand

The outlook for silver is strong, and many experts predict that silver will reach $100 per ounce by the end of 2026.