Navigating the Disparity Between Paper Silver and Physical Silver

If you’re entering the silver market for the first time, chances are you’ve asked yourself whether investing in paper silver is better than physical silver. While some prefer derivatives of this precious metal like exchange-traded funds (ETFs), silver mining stocks, or silver certificates, these are prone to counterparty risks and may not be able to keep up with demand should enough people wish to liquidate their assets.


Investment experts are observing the disconnect between the size paper silver market and the physical silver market. According to, the silver market is 250 times larger than its physical counterpart. Since there is only one ounce of physical silver for every 250 ounces of paper silver, only one certificate or contract in 250 is convertible.


This presents a problem for silver investors. However, there is an intelligent way of navigating the disparity between paper silver and physical silver. This is by investing more in physical silver bullion.


Why Invest in Silver Bullion?


Many investors are optimistic about silver as an investment, since speculations are pointing towards the positive end of the scale. Here’s why physical silver is a smarter investment than futures, ETFs, and bonds:


1. Silver bullion is immune from counterparty or default risk. You don’t need to hold on to the promise of another party to make good on a contract.


2. Silver is a hard asset. Once you purchase it, it’s yours to keep. It cannot be erased, unlike digital assets and Crypto currencies.


3. Silver is real money. Alongside gold and copper, silver has been used for centuries as money. While current currencies today are no longer backed by physical commodities, silver, alongside other precious metals, are highly liquid and are recognised worldwide as a store of value.


4. Silver is more affordable than gold. Silver is easier on the pocket to invest in than its yellow counterpart. The best part about it is that while it’s cheaper to buy silver, it still acts as a hedge for economic distress.


5. Silver’s industrial use is growing, and this is affecting the demand for this metal. Over half of the world’s silver supply is used in a wide array of industries and products which naturally keeps the demand strong.

Why Silver Bullion is a Good Idea


Diversifying your portfolio by investing in precious metals like silver is an excellent way to hedge your wealth against any market volatility, political instability, currency weakness, and economic collapse.


Physical silver, like its yellow metal counterpart, maintains its global purchasing power despite real-world risks like inflation or currency devaluation. What’s more, they are not correlated with typical investment options like stocks, bonds, or real estate which possess a certain level of volatility.


Now that you know that buying physical silver is the key to navigating the disparity between paper silver and physical silver, it’s time to start investing.


Begin Your Silver Investment Journey


Get started today with Private Vaults Australia! PVA is a state-of-the-art safe deposit box storage facility and silver and gold bullion dealer that services the Brisbane and Sunshine Coast regions.


For more info on navigating the disparity between paper silver and physical silver, contact PVA or read the PVA blog for more interesting news, tips and ideas to guide you.


Peter Hobson

My background involves the ownership of many businesses including owning and running multiple Chiropractic offices but mainly focused in Nerang on the Gold Coast for 30 Years.

I have a passion for accumulating and holding Bullion and have done so for many years. My extensive Business skills and Bullion knowledge makes it easy to assist others buying, selling and storing their Bullion.

Peter and Cassie work together to assist anyone from the experienced Bullion Investors to the complete novice. They are here to answer any questions to help you.

Safe Deposit Box

Private Vaults Boor a Tour

Private Vaults Contact us

2 Months Free, No long term commitment necessary.*  Limited spots available.

Share This