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How to Invest in Silver ETFs [2024] | Step-by-Step

How to Invest in Silver ETFs
Bogdan Stojkov

Summary: Adding commodities like silver to your portfolio can be a strategic move to diversify your investment portfolio in 2024. The most convenient way to invest in this precious metal is through silver ETFs, available on our go-to broker, eToro.

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eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

What are silver ETFs?

Silver is a precious metal known for its conductivity, malleability, and versatility. Beyond its traditional use in jewelry and coins, silver plays a vital role as a commodity in various industries, including electronics, solar panels, and healthcare.

Investing in silver has become more accessible than ever, thanks to financial instruments like silver exchange-traded funds (ETFs). Unlike traditional methods such as buying physical silver bars or coins, silver ETFs provide a convenient way to gain exposure to the silver market without storage or security concerns.

Best silver ETFs for 2024

Our top silver ETF picks include:

  • iShares Silver Trust (NYSE Arca: SLV);
  • Sprott Physical Silver Trust (NYSE Arca: PSLV).

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

If you’re an investor based in the UK, and you’re looking to invest in silver, you can check out our dedicated guide, How to Invest in Silver in the UK.

iShares Silver Trust (SLV)

iShares Silver Trust is an exchange-traded fund (ETF) designed to track the performance of the price of silver by holding physical silver bullion in trust. Investors can easily buy and sell SLV shares on the stock exchange, offering a convenient and liquid way to invest in silver without the complexities of physical ownership.

iShares Silver Trust price today

Sprott Physical Silver Trust (PSLV)

Sprott Physical Silver Trust is a closed-end fund that holds physical silver bullion to provide investors with a direct and secure way to gain exposure to the price movements of silver. With a focus on transparency and trust, the fund allows investors to participate in the potential benefits of silver ownership without the challenges associated with physical storage.

Sprott Physical Silver Trust price today

How to invest in silver ETFs: Step-by-step

If you’re interested in investing in silver ETFs, you can follow our step-by-step guide and complete the process in no time.

Step 1: Choose a broker and create an account

Selecting a reputable platform is the first step in your silver ETF investment journey. Our go-to broker for investing in silver ETFs is eToro, a user-friendly platform that simplifies the investment process for beginners.

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Once you’ve chosen your preferred platform, you should create an account by providing the necessary information. Of course, it’s key to ensure that the platform is secure and adheres to regulatory standards. In the case of eToro, it’s licensed by FinCEN.

Step 2: Fund your account

The next step in investing in silver ETFs is to deposit funds into your newly created account. Note that you can usually do this through bank transfers, credit cards, or other payment methods, which further simplifies the process.

Step 3: Research silver ETFs

After funding your account, you should conduct thorough research on available silver ETFs. Look for funds that align with your investment goals, risk tolerance, and time horizon. Additionally, make sure to consider factors such as expense ratios, historical performance, and the fund’s tracking index.

Step 4: Place your trade

After selecting the desired silver ETF, place your trade. Specify the amount you want to invest and review the order before confirming. Market orders execute at the current market price, while limit orders allow you to set a specific price for your purchase.

Pros and cons of investing in silver ETFs

Pros

Pros

  • Diversification: Silver ETFs add diversification to your portfolio, reducing reliance on traditional assets;
  • Liquidity: ETFs trade on exchanges, providing liquidity and flexibility for investors;
  • Cost-effective: Investing in silver ETFs is generally more cost-effective than buying physical silver;
  • Professional management: Professionals who make decisions based on market trends and performance manage ETFs.
Cons

Cons

  • Market risk: Like any investment, silver ETFs are subject to market fluctuations and economic conditions;
  • Expense ratios: Some ETFs may have higher expense ratios, impacting your overall returns;
  • Tracking error: The ETF’s performance may not perfectly mirror the underlying silver market, leading to a tracking error.

If you’re interested in investing in ETF commodities, you can check out our other guides on this topic, including:

Common mistakes when investing in silver ETFs

When investing in silver ETFs, you should avoid these common mistakes:

  • Neglecting research: Failing to research and understand the specific silver ETFs can lead to uninformed investment decisions;
  • Overlooking expenses: Ignoring expense ratios can impact your overall returns. Compare fees across different silver ETFs;
  • Emotional trading: Emotional decisions during market fluctuations can lead to impulsive actions. Stick to your investment strategy;
  • Neglecting monitoring: While ETFs often demand less active monitoring, it’s still important to regularly check on your investment to remain updated and make informed decisions.

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

FAQs about silver ETFs

Can I buy physical silver instead of investing in ETFs?

Yes, you can buy physical silver, but it comes with challenges like storage and security. Therefore, ETFs provide a convenient alternative.

What are the best silver ETFs?

Consider popular silver ETFs such as iShares Silver Trust (NYSE Arca: SLV) for its direct exposure to physical silver and Sprott Physical Silver Trust (NYSE Arca: PSLV) for a closed-end fund approach, offering diversified and transparent options for investors seeking to include silver in their portfolios.

How to trade silver ETFs?

To trade silver ETFs, open an account with a reputable platform like eToro, choose a specific silver ETF, fund your account, and place a buy or sell order through the platform.

How to profit from silver ETFs?

Profiting from silver ETFs involves strategic decision-making based on market trends, thorough research, and disciplined monitoring of your investment portfolio, adapting to market conditions as needed.

Are silver ETFs a safe investment?

Like any investment, silver ETFs carry risk. However, proper research and a well-thought-out strategy can help manage and mitigate these risks.

How do I sell my silver ETF shares?

Selling silver ETF shares is similar to buying. As such, you can use your trading platform to place a sell order, specifying the quantity and price.

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