Silver is a precious metal that is classic, elegant, and timeless in whatever form it takes. People buy silver coins, jewelry, and even teapots because they admire their appearance or treat the collection as an investment. There are other ways to invest in silver, one of which is purchasing silver ETF funds.
These funds are traded on the major public stock exchanges throughout the world, so they are not difficult to find. The price of one troy ounce of silver is much less than gold and this causes many investors to mistakenly conclude that silver investments will not yield as much profit. However, the returns on silver bullion over the past decade have been tremendous.
Silver ETF funds represent shares of various types of silver-related assets, including silver in its physical form. Some of these funds invest in silver mining companies, while several others purchase shares of silver refining company stock. There is a silver ETF fund representing every step in the process of sourcing and producing physical silver.
This ETF fund is a practical alternative to owning silver in its physical form. It eliminates the need for the investor to be concerned with storage and selling issues relevant to silver bullion. Unlike physical silver, the ETF fund does not require a large amount of storage space or finding a dealer to whom to sell the item in order to make a profit.
A silver ETF fund tends to track the price of silver, increasing in value as the price of silver rises. The spread between the buy and sell rate of these funds is much lower than that of physical silver. Individuals can purchase silver ETF funds from a stock brokerage firm, including one of the many discount brokers offering lower trading fees. Investing in the fund does not require a large cash outlay because funds can be purchased that represent a portion of an ounce of silver.