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Stay Informed with the Latest Silver News and Market Updates

While gold frequently dominates discussion as a safe haven investment, silver is another precious metal worth noting.

Compared to gold, silver is considered second best – gold’s poorer cousin. But is it?

In May 2021, silver was trading for around US$27 an ounce, a significant 70% rise from a year ago when the spot price was hovering at US$15.5 an ounce. In that time, gold rose by only 6.4%.

As a precious metal, silver has historic monetary value like gold but it also has more industrial applications. The greater industrial demand for silver is a big reason why the metal has outperformed gold lately.

Why Invest in Silver?

We should never lose sight of silver as a potential investment. Like its richer cousin, it is used as a form of money. But it is also a true commodity.

Estimates indicate that around 50% of demand for silver is industrial, with the rest coming from investors. The industrial demand is even more pronounced in recent years as industrial metals like copper surge on the back of strong demand from recovering economies.

What accounts for silver’s industrial demand?

Silver’s high electrical conductivity and durability lend themselves to many applications from electronics to photography.

Almost every computer, mobile phone, vehicle, and appliance contain silver.

For example, Radio Frequency Identification Device (RFID) chips – which use paper-thin antennas of sprayed-on silver – are replacing bar codes on many items in our supermarkets and inventories.

Just like other commodities, silver’s value at any given moment depends on multiple factors. Whether it be industrial utilisation and the business cycle or independent monetary factors like inflation, deflation and interest rates.

It should be noted that the silver market is more volatile than gold. Silver prices can drop just as fast as they rise. Like any market, there’s risk involved.

But when the price dips, it can provide the perfect point of entry for an investment. And then it’s just a matter of jumping off the train just as it’s reaching the top of a hill. Easier said than done of course.

This means, just like gold, silver can be a great means of protection against inflation and economic turmoil.

One reason this is the case is the theory that a commodity like silver should carry a constantly-growing intrinsic value since silver has a finite supply but – ideally – constant demand.

Silver can easily absorb the changes of the market, no matter how drastic. So silver can potentially be a versatile, yet steady, asset in a long-term portfolio.

Breaking Down Silver Stock Price Movements on the ASX

The price of silver is usually reported in US dollars.

A silver spot price is the amount a buyer pays to purchase a single ounce of the metal for immediate delivery.

A spot price contrasts with a futures or forward contract price.

A futures price of silver designates the price for future delivery of the metal. Futures contracts may help producers, end users, and other investors mitigate price risk.

Futures contracts can extend a month out or even a few years out.

If you would like to track the price of silver futures, you can check out sites like CME Group.

Interestingly, the spot price of precious metals like gold and silver is determined by the front month futures contract with the most volume.

To track the price of silver in Australia, you can visit sites like ABC Bullion and Perth Mint.

Spotlight on ASX-Listed Silver Stocks: Who's Leading the Charge?

Although price movements of precious metals are frequently reported by the major newspapers, the coverage is not extensive.

For dedicated coverage of gold and silver, you can check out sites like Kitco.com, and Metals Daily.

The reality for Australian investors is that many of the world’s major pure silver producers are based overseas.

And even though a large ASX company like South32 Ltd [ASX:S32] does have a world-leading Cannington silver mine in Queensland, the mine only accounts for 6.5% of the miner’s total revenues – not enough exposure for a silver investor.

There are, however, some ASX stocks that have silver exploration and production front and centre of their strategy. These include Silver Mines [ASX:SVL], Thomson Resources [ASX:TMZ], Red Metal [ASX:RDM], and Investigator Resources [ASX:IVR].

Silver Bullion in Australia: Current Market Insights and Analysis

If you decide to add silver to your investment portfolio, there are several buying options available. Here is a useful summary of some of your silver investment choices from the Silver Institute:

  • Bullion: silver in the form of bars that are at least 99.9 % pure.
  • Official coins: silver coins issued by a government mint.
  • Medallions: round pieces of silver resembling a coin but not considered legal tender. Medallions may be issued by governments or private mints.
  • Certificates or storage accounts: the metal is kept in storage but you can take possession within a few days if desired.
  • Accumulation plans: enables investors to accumulate silver on an average basis, similar to dollar cost averaging. The investor does not own the physical silver.
  • Futures and derivatives: agreements made on an exchange to take or make delivery of silver at a set date in the future.
  • Options: the right, but not an obligation, to buy or sell a given amount of silver, or financial security linked to silver, on a specified date in the future.
  • Exchange Traded Fund: a basket of equities linked to silver, which could be the physical metal itself or silver producers and refiners. ETFs are traded on exchanges like the ASX, without the physical ownership of the asset.
  • Mutual funds: open-ended funds holding a basket of silver-related equities that are priced once daily.

In terms of purchasing bullion specifically, there are many dealers across Australia selling precious metal bullion.

Here are some of them:

ABC Bullion (Sydney), KJC Bullion (Sydney), Silver Stackers Australia (Melbourne), Australian Bullion Company (Melbourne), Silver de Royal (Brisbane), Ainslie Bullion (Brisbane), As Good As Silver (Adelaide), and Perth Mint (Perth).

The best way to get started is to visit your local bullion dealer in person or via their website.

You don’t necessarily have to buy from your local bullion dealer. Most of them will ship to any address if you can sign for the delivery in person.

Bullion dealers offer silver from various mints around the world, so I recommend shopping around to see what you can find.

It’s important to note that all bullion dealers adhere to the same anti-money laundering identification and reporting obligations as banks.

This means that your identity will need to be confirmed by a bullion dealer: generally, a passport or driver’s licence will do.

Unpacking the Puzzle Behind the Value of Silver: Part Two

By Brian Chu, Monday, 19 June 2023

Two weeks ago, I discussed the reasons why silver may appear undervalued relative to gold. In today’s article, I’ll present another perspective to the puzzle, pointing out why the current price of silver is reasonable. Based on the silver producer’s profit margins, I find that it’s a stretch to suggest silver should be worth US$50 an ounce. That said, the supply deficit for silver is expected to grow in the future. So you may want to start increasing your exposure to silver now…

ASX ADN Share Price - Andromeda Metals Shares

Fearless Metal

By Selva Freigedo, Wednesday, 05 April 2023

Markets rallied yesterday after the RBA left interest rates unchanged, but the excitement could be short-lived. The banking crisis is still weighing on investors, which is boosting gold. But another metal is also faring well…

ASX SYR - Syrah Resources Shares

Syrah Resources Share Price Falls on Shipping Delays (ASX:SYR)

By Kiryll Prakapenka, Friday, 17 September 2021

The SYR share price is currently exchanging hands at $1.23 per share, down 2.8%. 12kt of natural graphite sales from Syrah Resources Ltd’s [ASX:SYR] flagship Balama Graphite Operation in Mozambique planned to ship this month has been delayed to October 2021.

All You Need to Know about Commodities Right Now — A Bigger Boom

All You Need To Know About Commodities Boom Right Now

By Ryan Clarkson-Ledward, Saturday, 03 July 2021

In today’s Money Weekend…a boom for the history books…a bigger commodities boom, or a looming bust?…all you really need to decide is which major metal takes your fancy…and more…

Trader’s Corner — US Dollar Ignites after FOMC — Spike in The US Dollar

Trader’s Corner — US Dollar Ignites after FOMC

By Murray Dawes, Saturday, 19 June 2021

The spike in the US dollar, and freefall in gold and other commodities, continued on Thursday but US bonds had a huge rally, negating the fall that occurred on the day after the meeting.

Gold, Silver, and the Metals to Watch in 2021 with Nick Frappell (Global GM of ABC Bullion)

By Shae Russell, Monday, 01 March 2021

Gold expert and Daily Reckoning Australia editor, Shae Russell, interviews the Global General Manager of ABC Bullion, Nick Frappell. She asks him for his take on the current gold price trend and his view on the outlook for the gold market. He talks about bond yields, the Biden administration, as well as the AUD/USD pair […]

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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

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