Log in Open account
UAE
CFDs and forex (FX) are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider.
Show more
CFDs and forex (FX) are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, FX, or any of our other products work and whether you can afford to take the high risk of losing your money.
Show less
All categories

How to trade silver: a quick guide

Commodities
Saxo Be Invested

Saxo Group

Silver is one of the few main precious metals, and it’s also an industrial metal; it gets more and more attention for its industrial uses in relation to the global green energy transition. If you are beginning to consider trading silver for the first time, you should start by understanding what factors drive silver.

Here are some of the main influences that can affect the price of silver:

  • Monetary policy: The policies of the US Federal Reserve, including interest rates and inflation targets, significantly influence silver prices. As silver does not yield interest, rising interest rates increase the opportunity cost of holding silver, often leading asset managers to reduce their exposure to real assets.
  • Currency fluctuations: Silver prices typically exhibit an inverse relationship with the value of the US dollar. A weaker dollar tends to drive silver prices higher, and conversely, a stronger dollar can suppress silver prices.
  • Geopolitical tensions: Silver is considered a safe-haven asset, sought by investors during times of geopolitical uncertainty or crisis due to its link to gold and its associated intrinsic value and perceived stability.
  • Supply and demand: Silver is often produced as a byproduct from the mining of other metals leaving the supply side relatively inelastic meaning a period of high prices may not necessarily lead to rising production.  Demand is split evenly between investment demand for silver coins and bars on one hand, and industrial applications such as solar panels, electric vehicles, medical equipment, silverware and jewelry.
  • Speculative activity: Silver is often seen as gold’s younger and more volatile sibling, as it tends to follow the direction of gold more aggressively, meaning a movement in gold tends to create a similar but bigger movement in silver. Speculators such as hedge funds anticipate and amplify price movements – up or down – based on fundamental and momentum-driven factors. 
Start trading commodities with Saxo today

So how can you actually trade this precious popular metal? Here are a few ways:

  • Physical silver: Purchasing physical silver in the form of jewelry, coins, or bars provides direct exposure to the metal but involves considerations such as secure storage, insurance, and higher trading costs.
  • Silver ETFs/ETCs: Exchange-traded funds or commodities offer a convenient way to invest in silver without holding physical metal. These products track silver prices closely and can be traded easily on exchanges.
  • Silver mining stocks/ETFs: Investing in silver mining companies or ETFs that hold a basket of mining stocks provides exposure to gold prices. However, these investments carry operational risks and may exhibit higher volatility compared to gold itself.
  • Silver futures, CFDs, and options: Trading silver futures, contracts for difference (CFDs), or options involves higher risk due to leverage. While these products offer opportunities for speculation, they also require careful risk management to mitigate potential losses. The COMEX silver futures has a contract size of 5000 troy ounces, and with a current price around USD 28 per ounce, a contract value of USD 140,000. Being a leveraged product, the buyer or seller of a futures contract has to provide around USD 10,000 as collateral per contract, leaving the owner of the position highly exposed to losses without proper risk management. CFDs track the futures price with the main difference being the ability to trade smaller quantities than the 100-ounce futures contract.
  • Spot silver trading: Another leveraged product that may suit traders using risk management tools while long-term investors may find ETFs being the better option. At Saxo you can use leverage to trade on the price of silver against 12 different currencies – including US dollar, euro, yuan and Swiss Franc – and gold.

Now that you understand the factors that influence the price of silver, and the ways to trade silver, you need to figure out if it’s a commodity that is right for you. The only way to do that is to consider your tolerance for risk, and time horizon, as well as your personal financial goals.

Silver is considered a relatively safe precious metal to invest in, but the price still responds to changes in other markets such as the dollar and government bond yields. Before making any investment, always be sure to keep yourself well informed with the latest market news and insights.

Practice trading commodities with a Saxo demo account today

Quarterly Outlook

01 /

  • Macro Outlook: The US rate cut cycle has begun

    Quarterly Outlook

    Macro Outlook: The US rate cut cycle has begun

    Peter Garnry

    Chief Investment Strategist

    The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c...
    Read full article
  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

    Read full article
  • Equity Outlook: Will lower rates lift all boats in equities?

    Quarterly Outlook

    Equity Outlook: Will lower rates lift all boats in equities?

    Peter Garnry

    Chief Investment Strategist

    After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto...
    Read full article
  • FX Outlook: USD in limbo amid political and policy jitters

    Quarterly Outlook

    FX Outlook: USD in limbo amid political and policy jitters

    Charu Chanana

    Head of FX Strategy

    As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ...
    Read full article
  • Commodity Outlook: Gold and silver continue to shine bright

    Quarterly Outlook

    Commodity Outlook: Gold and silver continue to shine bright

    Ole Hansen

    Head of Commodity Strategy

    Read full article
  • FX: Risk-on currencies to surge against havens

    Quarterly Outlook

    FX: Risk-on currencies to surge against havens

    Charu Chanana

    Head of FX Strategy

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperfo...
    Read full article
  • Equities: Are we blowing bubbles again

    Quarterly Outlook

    Equities: Are we blowing bubbles again

    Peter Garnry

    Chief Investment Strategist

    Explore key trends and opportunities in European equities and electrification theme as market dynami...
    Read full article
  • Macro: Sandcastle economics

    Quarterly Outlook

    Macro: Sandcastle economics

    Peter Garnry

    Chief Investment Strategist

    Explore the "two-lane economy," European equities, energy commodities, and the impact of US fiscal p...
    Read full article
  • Bonds: What to do until inflation stabilises

    Quarterly Outlook

    Bonds: What to do until inflation stabilises

    Althea Spinozzi

    Head of Fixed Income Strategy

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain ...
    Read full article
  • Commodities: Energy and grains in focus as metals pause

    Quarterly Outlook

    Commodities: Energy and grains in focus as metals pause

    Ole Hansen

    Head of Commodity Strategy

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities i...
    Read full article

Disclaimer

 The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)


Business Hills Park – Building 4,
4th Floor, office 401, Dubai Hills Estate, P.O. Box 33641, Dubai, UAE

Contact Saxo

Select region

UAE
UAE
Products & pricing
Platforms
Accounts & service
General
Other
Legal

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.