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How To Invest in Silver in Australia For 2024?

January 31, 2024

Investing in silver in Australia has become increasingly popular in recent years as investors look for ways to diversify their portfolios and hedge against inflation and market volatility. Whether you are new to investing in precious metals or a seasoned vet, you will know the different options to invest in silver and how to invest in silver in general so you can make informed decisions about including this commodity in your investments. 

Is Silver a Good Investment in Australia?

Investing in silver has proven to be a worthwhile investment for Australian citizens in light of rising inflation and economic uncertainty. Silver stands out as a strong contender when evaluating assets that hold their value over the long run. Unlike other precious metals, the supply of silver is carefully balanced as it is also an industrial metal vital for applications like solar panels, batteries, and electronics. 

This balanced supply and demand profile makes silver a stable investment that can hedge against inflation and currency volatility alike. For Aussie investors specifically, silver offers diversification away from a market heavily concentrated in commodities, making it a good investment in Australia. 

All Investing in Silver Options in Australia

There are a few main avenues for Australian investors looking to gain exposure to silver in their portfolio: physical silver, silver ETFs and CFDs, and silver mining stocks. Each option comes with advantages and considerations to weigh depending on an individual’s investment goals and risk tolerance. We will break down the key features of each to help determine the best way to invest in silver futures to suit your needs.

invest in silver

Buying Physical Silver

For those looking for direct exposure to silver, physical bullion is the most straightforward way to invest in silver futures in Australia. Both Gold Secure and Perth Mint Bullion offer a wide selection of high purity silver bars and coins that can be purchased and stored securely. 

Owning physical silver allows you to hold the actual asset, taking direct possession outside of the banking system. However, storage and insurance costs do need to be considered long-term. Issues like transport and liquidity also make physical bullion less practical for quick trading. 

Silver ETFs and CFDs

For those seeking exposure to silver price movements without the hassle of storage, silver ETFs and CFDs offer a versatile liquid approach. Exchange-traded funds like the ETFS Physical Silver ETC allow investors to gain silver exposure through a regulated investment vehicle traded on the ASX.

CFD providers also offer contracts for difference referencing the underlying silver future, allowing leverage and shorting opportunities. 

Both ETFs and CFDs bypass physical ownership and costs, offering simple trades from an internet-connected device. However, these investment vehicles are only as good as the counterparty behind them. Fees also apply to ETFs. Overall, silver ETFs and CFDs provide a cost-effective way to invest in silver in Australia suited for active trading strategies.

Mining stocks

For investors interested in gaining broader exposure to silver through companies that produce it, silver mining stocks offer another path. By purchasing equities in major silver miners, your investment performance will depend not just on silver prices but also on the company’s management abilities. 

Mining stocks provide the potential for greater upside compared to spot silver since their value incorporates exploration success and production growth in addition to the underlying metal price. However, they also introduce greater risks from operating issues, political problems, and other equity market influences. 

Tips to Invest in Silver in Australia

When getting started with silver investments, do take time to research markets and manage risk. Developing a long-term strategy before acting on short-term price moves is key to successful investing in silver. 

For Australian investors, this means leveraging local insights from Perth Mint, banks like Westpac which offer market commentary, and industry reports from organizations like The Silver Institute. Subscribing to trade alerts from reputed analysts can also keep you updated on factors impacting prices.

buy silver bullion

Risk Management

Risk management is an important part of successfully investing in silver long-term. With volatility inherent to commodity markets, prudent investors approach silver with a focus on limiting the downside. This means diversifying your portfolio beyond silver and using risk-defined position sizing based on your overall allocation to precious metals. 

Stop-losses for physical holdings and limit orders for leveraged investments provide automated downside protection. Rebalancing periodically to your strategic asset weight also prevents overexposure from distorting returns.

Market Research

Thorough market research is similarly vital before implementing any silver investment strategy. Valuable resources exploring factors like seasonal trends, macroeconomics, technical analysis and industry reports exist locally and globally. 

Sources like live price quotes from bullion dealers, annual production estimates from consultancies, and currency fluctuation data give insight into what may drive short-term moves and long-term direction.

Understanding these fundamentals places you in a well-informed position to take advantage of valuable opportunities and avoid pitfalls when investing in silver.

Where To Buy Silver in Australia?

For physically purchasing silver to hold as a tangible investment or for regular trading needs, the top choice for Aussies is Gold Secure. With decades of experience in precious metals and outlets conveniently located across major cities like Brisbane. 

No matter your preferred method – physical, ETF, or mining stock – dedicated dealers make completing silver transactions within Australia straightforward. Doing thorough research and knowing reliable partners is instrumental to effectively investing in silver close to home. 

Factors Impacting Silver Investment in 2024

  • Global economic growth outlook and inflation expectations: A stronger economy would support industrial demand for silver, while higher inflation acts as a hedge for silver investments.
  • U.S. dollar strength: A rising dollar makes commodities priced in dollars like silver less appealing to foreign investors.
  • Investment demand: Increased ETF & fund flows as well as retail interest impact market liquidity & price direction.
  • Industrial demand: applications like electronics, and photovoltaics influence baseline physical consumption.
  • Producer hedging behaviour: Major miners’ decisions to lock in prices affect near-term supply.
  • Geopolitical risks: Tensions involving major economies or producers may ignite safe-haven bids.
  • Monetary policy: Interest rate expectations guide the opportunity cost of holding non-yielding bullion.
  • Alternatives: Flows between gold, crypto, and stocks impact the relative appeal of silver investments.

Final Words

In conclusion, this article has outlined the basics of investing in silver for Australian investors and some of the main factors that may impact Australia’s silver market in 2024.

Whether you choose to invest in physical silver, ETFs, mining stocks or a combination, doing thorough research into your options and keeping an eye on the fundamentals will serve you well in building a silver position suited to your unique goals and risk tolerance. 

By carefully managing risk, studying industry developments, and maintaining a long-term perspective, Australian citizens stand to benefit from including silver as a portfolio diversifier and inflation hedge for the coming year.

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