INVESTING IN SILVER
IN AUSTRALIA

Investing in silver in Australia is a good way to diversify your investment portfolio. To start, you should research the historical performance of the commodity, and how it can fit into your current portfolio. Then, create and verify your eToro account and begin investing.

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Like any decision about the stock market, investing in silver stocks requires research and due diligence to ensure that it aligns with your investment goals — whether they are long-term or short.

As well as investing in global stocks, you also have the opportunity to invest in commodities such as gold and silver.

But is silver still an asset that could help you achieve your financial goals? To help you make a decision on whether or not to invest your hard-earned dollars in silver, this guide will answer the most important questions.

What should you know about the silver industry in Australia?

Historically, silver has largely played second fiddle to gold due to its lower price and profile by comparison. However, years such as 2020 saw it hit the headlines again.

Back in the 19th century, silver was minted and used as money for international trade, but it was phased out slowly as a currency due to its value being too high — that is, the value of the silver was worth more than the face value of the silver coin. 

More locally, Australia has the second-largest silver reserves in the world, only trailing behind Peru. However, despite the amount there is to mine, Australia tends to deliver only modest production levels. In 2024, for example, Australia produced 1,200 metric tons of silver, whereas Mexico produced 6,400 metric tons.

How have silver stocks performed historically?

The hard figures for silver stocks’ historical performance are healthy. The good news for investors thinking about adding silver to their portfolio is that it is a metal that has a huge historical demand across a variety of industries. 

This is because it has many useful properties — companies in shipping and transport want it for its electrical conductivity (e.g., for RFID tags), while medical companies want to leverage its antibacterial properties.

Historically, silver played a big role in the photography industry (e.g., silver-based film), but has since gone out of fashion with the rise of digital cameras. Despite this, there has been a large uptick in silver’s application for many new innovations, such as in batteries, superconductors and microcircuits.

The price of an ounce of silver skyrocketed to AUS$35 (as of March 2025). On the ASX in particular, there have been a few times when silver suddenly broke out and its price spiked, such as in 2010–11 when it soared over 175% in a single year before crashing over 25% in a two-day period.

What should you consider when investing in silver?

It is important to recognise the marked difference between investing in gold versus investing in silver. Silver tends to be far more volatile than gold, as its value is closely tied to the industrial supply and demand for it, particularly as part of innovative technologies.

Many electrical appliances, industrial machines and even medical devices use silver, and these products are in high demand in large economies such as China and other nations in the East. This makes silver a desirable commodity, which can drive up the price depending on market demands.

There are also many different ways to invest in silver. Like gold, you can buy physical silver coins and bars. However, if you prefer getting exposure to commodities without having to actually own the metal, then you’ll likely prefer a silver exchange-traded fund (ETF). You can also invest in listed companies that are currently mining silver. 

One example includes Fortuna Silver Mines Inc, a Canadian company that mines in Latin America and West Africa.

Can investing in silver offer dividends?

Yes, there are silver companies (such as mining operations) on the stock market that can pay investors dividends. It’s up to you to do your due diligence, research their dividend payout history, and decide whether or not the company will make a good addition to your portfolio.

Just a few of the silver and precious metals mining companies that may pay dividends include Fresnillo plc, Pan American Silver Corporation and Wheaton Precious Metals.

How is the silver market performing?

While it’s impossible to say with any certainty whether the price of silver will rise or fall in the future, there are some indisputable facts associated with the market at the moment. The main one being that price volatility has increased significantly.

This appears to be a long-term trend as illustrated in the below chart which shows the price range for silver between 2015 – 2020, and 2020 -2025. Investors considering the silver market will need to establish if the increased volatility is a good fit for their personal risk tolerance, but the price moves do represent an opportunity for those who feel fully informed about the market. 

Past performance is not an indication of future results.

Source: eToro

There has also been a noticeable upwards trend in recent years with the price of silver more than doubling.  Analysis of the textbook reasons why silver is an attractive investment go a long way to explaining recent price strength.

There are hopes of a surge in demand for stationary batteries and electric vehicles that require silver for their production. The metal is also used in the creation of 5G infrastructure that is being rolled out on a global scale.

Reasons for the price rise which are based on fundamental analysis have been backed up by shifts in investor sentiment and the role silver plays as a defensive asset. The sharp rise in the price of silver has coincided with increased levels of geo-political uncertainty including wars and a breakdown of established global trading structures.  

Final thoughts 

For investors in Australia, investing in silver offers a good opportunity to diversify your portfolio. First of all, you should take the time to research silver’s historical performance. Then, consider how this commodity can fit into your portfolio. Finally, sign up with eToro and start investing.

Continue building your knowledge with the eToro Academy.

FAQs

In what ways can you invest in silver?

You can invest in both physical and non-physical silver assets, including silver bullion and coins, shares in silver mining company stocks and silver ETFs.

Why is silver a volatile commodity?

The price of silver is not only driven by speculation, but also by supply and demand. As it has lower market liquidity compared to larger commodities such as gold, its price is more likely to fluctuate.

What makes silver a good investment?

This depends on the individual and whether it is appropriate for your investment portfolio. However, many investors appreciate that silver has an intrinsic value and is, therefore, traditionally steady in the face of economic and political disruption, as well as other external factors such as inflation.