How to invest in silver in Australia

Silver is a precious metal with vast industrial uses and a long history as a store of value. For Australian investors, it can play a role in diversification, giving potential balance to equity-heavy portfolios and a way to express views on manufacturing, electrification and inflation. 

If you’re interested in learning about how to invest in silver in Australia (from physical bars to ETFs and shares), here’s what you need to know. 

Ways to gain exposure to silver

1. Buy physical silver 

How it works 

You buy the metal itself – coins or bars – and hold them. Your exposure is to the spot price (less the premium you pay over spot and any resale discount). It’s an option for investors who want tangible assets and no counterparty exposure to fund structures. 

Where to buy in Australia 

There’s the Perth Mint and reputable bullion dealers. Make sure you do your research and compare product premiums, buy-back policies, identification requirements and delivery/collection options. Always verify the authenticity and make sure dealers are being transparent with pricing. 

Pros 

• Direct ownership. No fund or issuer risk. 

• No ongoing management fees. 

• Can be held long-term as part of your wealth reserves. 

Cons 

• Premiums over spot on purchase. Discounts on resale. 

• Storage costs and logistics, plus insurance costs. 

• Lower liquidity and wider spreads than exchange-traded alternatives. 

2. Silver ETFs 

What they are 

Exchange-traded funds give you exposure to silver prices in a single trade. Some hold physical silver in custody, such as iShares Silver Trust (SLV:US) and Global X Physical Silver (ETPMAG), while others use derivatives to track price movements. 

How to buy 

You can buy ETFs through a share trading account. Search the ETF code, read the PDS, check the fees/structure and place an order like any other share. If you’re new to investing, start by learning about stockbroking and international shares if you’re comparing overseas options. 

Pros 

• Convenient and usually has tighter spreads than retail bullion. 

• No personal storage or insurance needed. 

• Easy to buy/sell during market hours. 

Cons 

• Ongoing management fees. 

• May not track spot price exactly. 

• You don’t hold the metal directly. 

3. Silver stocks 

What they are 

Equity exposure to silver mining companies, explorers and royalty businesses. Returns can be driven by factors such as operational performance (grades, costs, production) and the silver price. Mining companies are generally leveraged to silver moves, meaning their share prices can often rise or fall by a greater percentage than the silver price itself.  

How to buy 

Use a share trading platform to research and buy ASX-listed companies or overseas miners in international markets. If you’re new to shares, you’ll want to familiarise yourself with how share investing works. 

Pros 

• Potential for dividends and growth beyond spot price. 

• Company-specific catalysts (discoveries, expansions) can add value. 

• Simple brokerage purchase with no storage required. 

Cons 

• Company and execution risk (cost inflation, capex, geology). 

• Higher volatility than the underlying metal. 

• Commodity cycles can impact financing and valuations. 

What factors affect silver prices? 

Industrial demand 

Silver has extensive industrial uses, including electronics, solar panels, medical devices, electrical contacts, EV components and more. Cycles in manufacturing and clean-energy investment can increase (or reduce) demand. 

US dollar relationship 

Silver is priced in USD globally. A stronger US dollar tends to correspond with lower precious-metal prices (and vice-versa), all else equal. Australian investors also see returns influenced by AUD/USD when translating outcomes back to the Aussie dollar. 

Inflation and economic factors 

Silver can behave as a partial inflation hedge, especially during times of negative real yields or rising inflation expectations. Growth outlooks and risk sentiment also matter. 

Supply and mine production 

Primary silver mines and byproduct output from lead-zinc, copper and gold operations determine supply. Disruptions, grades, permitting and capex cycles can tighten or loosen the market. 

Silver vs Gold for Australian investors 

• Gold-to-silver ratio (GSR): Measures how many ounces of silver equal the price of one ounce of gold. Historically, a higher ratio suggests silver is cheaper relative to gold, and a falling ratio shows silver outperforming. Traders sometimes use the GSR to help with allocation movements between metals. 

• When to choose silver over gold: Investors who want more cyclical, industrial leverage to growth might prefer silver over gold. Those favouring defensive, monetary-hedge characteristics instead choose gold. Many hold a blend. 

How to get started 

1. Choose your investment method: Decide whether you want physical metal, an ETF, or selected mining company stocks.  Match the vehicle to your risk appetite and storage/operational preferences. 

2. Select a platform or dealer: For shares and ETFs, open a brokerage account with CMC Invest. For physical bullion, compare reputable dealers and the Perth Mint. 

3. Make your first purchase: Research codes (e.g. ETF tickers or ASX/US mining company listings), review fees/spreads and place an order. 

4. Storage considerations: For physical metal, you’ll need secure home storage or insured vaulting. For ETFs/shares, keep good records of holdings, distributions and tax reporting.  

5. Monitor and review: Keep track of silver market developments and key economic data, and adjust your portfolio as conditions evolve in line with your strategy.

Is silver a safe investment? 

‘Safe’ depends on context. Silver prices can be volatile when monetary and industrial factors come into play. Some of the top risks include sharp price swings, storage and liquidity costs for physical holdings and concentration risk if you choose a single mining company. Here are a few ideas you might want to implement to manage the risks of investing: 

• Diversify across vehicles (e.g. blend an ETF with a few mining company stocks). 

• Set the size of your position appropriately relative to your portfolio. 

• Keep an eye on your holdings as macro conditions change. 

When can I trade silver? 

Market hours change according to the asset type. Exchange-traded products trade in their local market hours. 

Next steps

Silver offers Australian investors a way to diversify portfolios, gain exposure to industrial growth trends and potentially hedge against inflation. Whether you choose physical bullion, ETFs or mining stocks, the right approach depends on your investment goals, risk tolerance and preferred level of involvement. With options ranging from tangible assets to exchange-traded instruments, silver can play a valuable role in a well-balanced investment strategy.

Start investing in silver today with CMC Invest by opening an account. 

This article provides general information only. Past performance is not a reliable indicator of future results. It is not to be construed as a solicitation or an offer to buy or sell any financial instruments, or as a recommendation and/or investment advice. It does not intend to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any financial instruments. CMC Invest believes that the information in this article is correct, and any opinions and conclusions are reasonably held or made on information available at the time of its compilation, but no representation or warranty is made as to the accuracy, reliability or completeness of any statements made in this article. CMC Invest is under no obligation to, and does not, update or keep current the information contained in this document. Neither CMC Invest nor any of its affiliates or subsidiaries accepts liability for loss or damage arising out of the use of all or any part of this document. Any opinions or conclusions set forth in this article are subject to change without notice and may differ or be contrary to the opinions or conclusions expressed by any other members of CMC Invest.