How to Buy Silver with American Express [2024] | Step-by-Step

Summary: American Express (AMEX) does not allow its customers to invest in silver on its platform directly. However, American Express cardholders can still invest in silver through regulated third-party brokerages like Interactive Brokers (IBKR). To do so, American Express users can deposit money from their card to their IBKR account and invest in silver securely.

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Can you buy silver with American Express?

Since it’s not an investment platform, American Express does not offer investments in silver on its platform directly. However, investing in silver using your AMEX card is still possible via licensed third-party exchanges. If you’re an AMEX cardholder, you can transfer your funds to a trustworthy exchange and invest in silver and other precious metals such as gold.

How to buy silver with American Express?

The most secure way to buy silver with your AMEX card is to do it via regulated asset-exchange platforms such as Interactive Brokers. Note, however, that investing in physical silver is not possible on IBKR. Instead, you have the option to invest in silver Contracts for Difference (CFDs).

How to buy silver with American Express: Step-by-Step

You can buy silver with American Express simply in just a few steps:

• Step 1: Sign up for an account (personal or business);
• Step 2: Specify how much money you’d like to transfer to your new account;
• Step 3: Link your AMEX card to your IBKR account and transfer the specified amount in your fiat currency of choice;
• Step 4: Head over to the Commodities section, select ‘silver’ from the menu, and specify the amount you want to purchase.

Disclaimer: CFDs are complex financial instruments and carry a significant risk of losing money rapidly because of leverage. Note that 62.5% of retail investor accounts face losses when trading CFDs with IBKR. It’s important to assess your understanding of how CFDs work and whether you can bear the substantial risk of financial loss. This product is not available for US investors.

Best Platform for Worldwide Stock Trading & Investing

• Highly trusted multi-asset broker with clients in over 200 countries

• Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)

• Low commissions starting at $0 with no platform fees or account minimums

• Easily fund your account and trade assets in 26 currencies

• IBKR pays up to 4.58% interest on cash balances of $10k or more

Up to 4.58% interest on balance*

Get Started

Silver price today

About American Express

American Express (AMEX) (NYSE: AXP) is a multinational financial services company based in the United States. Nowadays, the company’s main focus is on credit and debit cards, but its origins go as far back as 1850, when it was first established as a mail business before diversifying and branching out into financial services. 

In addition to payment cards, American Express offers users various other financial services. Some of them include:

• Personal banking: Savings accounts and personal loans, Certificates of Deposit (CDs), online banking, financial and retirement planning, Individual Retirement Accounts (IRAs), High-Yield Savings Accounts (HYSA);
• Business banking: Business credit and charge cards, business savings accounts, business loans, business rewards programs;
• Wealth management: Estate planning, insurance, advisory services, investment rewards.

American Express silver policy

As of now, there have not been any official AMEX policies that would hinder users from using their cards when investing in silver and other commodities. In fact, the company’s precious metal policies were updated in 2021 to exempt precious metals, coins, and bullions from the cash advance taxes.

Is silver a good investment?

Investing in silver might be a good idea, provided you do it with the right attitude. If you are looking to make money with your investments, silver and other precious metals might not be a good idea. That is because commodities of this kind do not generate cash inflow like, say, stocks would.

However, silver is known for its ability to maintain its value over the long term. In essence, by incorporating silver into a diversified portfolio and allocating, for instance, 10% of your resources towards it, you establish a reliable hedge against inflation and potential downturns in the value of your other assets. This strategic allocation ensures that you have a tangible asset to depend on should the value of your other investments decline significantly.

How to buy silver safely

It is easy to make mistakes when investing in silver, especially if you’re new to precious metals as an asset. To minimize risks, it is crucial that you familiarize yourself with the trade and take some precautions.

• Resist high leverages: When you invest in CFDs, you don’t own the asset — you make predictions and bet on its price fluctuations. If you leverage too high and bet that the price will go up, say, ten times, you risk losing a lot if your predictions don’t come true;
• Do some research on silver as an asset: Before making any investments, make sure that you have a thorough understanding of silver as an asset and the precious metal market as a whole. Learn the implications of your investment, the nature of the asset, what other costs it may incur, etc.;
• Think long-term: Investing in silver is usually not a short-term solution. The market can be highly volatile, and frequent transactions can bring additional conversion and transfer costs. When investing in commodities, it is better to have a long-term goal, as it increases the chances of compound growth;
• Compare prices and check the broker’s background: The commodity market attracts a lot of scammers, so it’s easy to fall for rug pulls and similar tricks. Before making an investment, compare prices on the market to avoid being overcharged, and make sure your broker has a good track record and all necessary documentation to guarantee a safe and legitimate transaction. 

Pros and cons of investing in silver

Pros

• Portfolio diversification: Adding silver to your asset portfolio is Great for portfolio diversification;
• It is a tangible asset: When you invest in silver and other precious metals, you get a tangible, physical presence in your portfolio, which is not the case with bonds and stocks;
• There is a steady industrial demand for silver: Silver has many industrial applications, for example, in the electronics and medical industry;
• It’s a good hedge against inflation: Precious metals are independent of stocks and bonds and can retain their value even during inflation.

Cons

• Lack of dividends: Investing in silver does not guarantee passive income;
• There are additional costs: Investing in silver coins or bullions entails additional costs, for example, storage;
• The price may fluctuate: The value of silver and other precious metals can be rather volatile, which can make your investment risky.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about how to buy silver with American Express

Best Platform for Worldwide Stock Trading & Investing

• Highly trusted multi-asset broker with clients in over 200 countries

• Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)

• Low commissions starting at $0 with no platform fees or account minimums

• Easily fund your account and trade assets in 26 currencies

• IBKR pays up to 4.58% interest on cash balances of $10k or more

Up to 4.58% interest on balance*

Get Started