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, it is prone to counter-party 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 in 2019 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 not backed by physical commodities anymore, silver, alongside other precious metals, are highly liquid and are recognized 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.

Begin Your Silver Investment Journey with Us

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. You can buy and sell silver bullion from Private Vaults Australia at some of the most competitive prices on the market. We offer instant purchase and collection and there are no minimum orders required.

What’s more, you don’t have to worry about storage when you buy your bullion from us. we offer premium bullion storage services at our private vaults, so you can rest assured that your investment is safely tucked away in a private safe deposit box. 

Invest in your future now! Give us a call at 1300 888 782 and our team will be more than happy to guide you through your new investment journey.



Register now to receive our opening offer - 2 Months Free on your first year, limited spots are available

Share This