Type of Silver to Buy & How to Trade Silver Bullion
Looking to diversify your investment portfolio with silver? Whether you're new to trading or a seasoned investor, understanding the types of silver you can invest in and how silver trading works is essential.
In this guide, we’ll explore popular methods to buy silver, the benefits of silver trading, and how Emperor Financial Services Group can help you get started in Hong Kong.
What is Silver Trading?
Silver trading refers to the practice of speculating on silver price movements to generate profit, without needing to own the metal physically. Traders can take long or short positions depending on market conditions, using various tools like futures, ETFs, CFDs, or spot pricing.
This method provides flexibility, global market access, and the ability to use leverage, making it an attractive option for investors seeking opportunities beyond traditional assets. Whether you’re aiming for short-term gains or long-term protection against inflation, learning how to buy silver through the right products and platforms is key.
Advantages of Silver Trading in Hong Kong
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Silver is More Affordable
Silver is described as “poor man’s gold”. Compared to gold, silver is much more affordable to buy for beginners and traders who have limited funds to start their investment journey.
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Industrial Use Is Growing
Silver is used in a huge variety of industrial sectors, such as electronics, automobiles, jewelry, and manufacturing, due to its conductivity. In addition, those industrial applications cannot be replaced by gold. Therefore, silver is expected to have a higher market value in the future due to growing demand for it.
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Silver Price Is More Volatile
The size of the silver market is much smaller than the gold market. Furthermore, more than 50% of silver’s supply is used for industrial purposes, such as electronics and medical applications. As a result, silver is more volatile than gold during market fluctuations and inflation.
Type of Popular Silver Trading
Silver investment or trading occupies a significant proportion of the financial market, and many investors are familiar with traditional forms such as silver jewelry or silver bullion. In fact, due to the larger price fluctuations inherent in silver, many professional investors also adopt appropriate strategies for silver trading.
1. Physical Silver (Silver Jewelry, Silver Bullion, Silver Coins)
Similar to gold, physical silver is also one of the most well-known investment methods. Its advantages lie in its popularity and accessibility, coupled with the relatively low price of silver, which makes the entry threshold relatively low. However, the disadvantages of physical silver include its inconvenience in liquidation, poor liquidity, and higher costs associated with buying and selling.
2. Silver Accounts
Similar to gold accounts, the process to buy silver is quite simple; you just need to buy silver at a bank, and the bank will keep it for you. It's important to note that your investment in silver accounts needs to be handled via the bank, and these accounts are not classified as deposits and do not accrue interest.
3. Silver Stocks/Silver ETFs
Stocks related to the concepts of silver (such as Pan American Silver PAAS) and Silver ETFs (such as SLV) are among the best ways for investors to buy and trade in silver. Compared to physical silver, this method of investment can save a lot of transaction costs and time.
4. Silver Futures
Silver futures are a major leveraged trading option in the market, with the Chicago Mercantile Exchange (CME Group) being the most mainstream futures exchange today. Silver futures (SI) are traded for up to 23 hours a day, making them almost an all-day trading option, and are particularly popular with short to medium-term speculators. However, like most futures products, silver futures have requirements for delivery and rollover. Therefore, investors must either take delivery or roll over to the next delivery month before the expiration of the contract.
5. Silver CFDs
CFDs (Contract for difference) allow investors to speculate on the price movement of silver in either direction without actually buying it. A profit or loss can be made based on investors’ forecasts.
Going Long: Investors profit if the price of silver increases. In other words, they buy Silver CFDs in Hong Kong and sell them later when the price increases.
Going Short: Investors take advantage of markets where the silver price is falling. When they go short, they sell a borrowed Silver CFD in the hope that its price will drop and then buy it back later for profit.
How is CFD margin calculated?
Curious how your gains or losses are calculated in a Silver CFD trade? Don’t worry — the math is simple, and we’ve got clear examples to walk you through it.
Profit or Loss = (Lot x Silver Volume) x (Exit Price – Entry Price)
Assumption: You buy a Silver CFD at a price of $25, and the silver volume is 5000 oz.
Example A: You sell the Silver CFD at a price of $26, and you will make a profit of $5000
+$5000 = (1 x 5000) x ($26 - $25)
Example B: You sell the Silver CFD at a price of $24, and you will make a loss of $5000
-$5000 = (1 x $5000) x ($24 - $25)
The above examples are references only. Please note that you will also need to pay extra charges, such as commission fees, guaranteed stop fees, and overnight funding charges.
If you would like to know more details about how the profit or loss from Silver CFDs is calculated, please do not hesitate to contact our customer service hotline at 6389 8882.
How to Choose Your Online Trading Platform?
Picking the right platform is essential when you want to buy silver or trade other commodities. Here's what to look for:
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Segregated Trading Accounts
Segregated Trading Accounts help ensure traders’ funds are secure. Investors’ funds will not be misappropriated for other purposes, such as bankruptcy, and will only be used for their own trading and investment.
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Transparent Disclosure
Investors can minimize hidden costs when online trading platforms provide a high level of disclosure, such as real-time prices and commission rates.
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Free Demo Account with Risk-free Trading
Free Demo Accounts allow investors to practice without risking real capital before moving to the live market. Furthermore, they help investors understand how the platform and market work, gaining confidence and developing their trading strategies.
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Ease of Deposits and Withdrawals
Many online trading platforms have their own withdrawal and funding processes and policies. Traders should consider platforms that provide more than two methods of deposits and withdrawals, such as bank transfers, wire transfers, and checks. In addition, traders should consider the speed of withdrawal and deposit, which normally takes 1 – 7 working days to complete.
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Reliable Trading Platforms
Nowadays, most trading transactions are completed online, so having access to a stable, user-friendly, and well-designed trading platform is essential. Whether you’re planning to buy silver or gold, a reliable platform ensures smooth execution and greater control over your investments.
Many platforms also offer advanced features such as in-depth analytic tools, daily market news, and live pricing data. For example, investors can stay ahead of market trends by checking our precious metal real-time quote page — a valuable resource for tracking gold and silver prices before making a move.
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Quality of Client Support
Many online trading platforms offer 24/7 online support to traders who need assistance at any time when they run into technical issues or have account funding inquiries.
3 Steps to Buy or Trade Silver Online with Emperor Financial Services Group (EFSG) in Hong Kong
Getting started with silver trading is quick and simple. Follow these three easy steps to open your account and begin your investment journey with EFSG.
Step 1: Create an Account
Creating an account by providing your personal information. Please read our risk statement before submitting your details.
Step 2: Deposit
We offer multiple deposit methods, including eDDA, bank transfer, and check.
Step 3: Start Trading
Emperor Financial Services Group (EFSG) offers a variety of trading products in Hong Kong, including Gold, Silver, and Forex.
Through our official channels, you may seek advice from our professional CS and sales team, who are licensed by Hong Kong financial institutions.
About Emperor Financial Services Group (EFSG)
Emperor Financial Services Group (EFSG) specializes in providing gold, silver, and forex trading services. Over the past four decades, EFSG has established a strong presence in Hong Kong and built a trustworthy reputation with its solid foundation, extensive network, and professional service teams. EFSG offers diversified trading platforms, including 24-hour online and smartphone trading. EFSG has several international entities and recognized licenses.
Emperor International Exchange (HK) Co. Ltd., is a recognized financial institution for leveraged foreign exchange trading with trading license no. ACJ 776. It provides leveraged foreign exchange trading services.
Emperor Bullion Limited ("EBL") provides comprehensive precious metals investment services.
Emperor Gold & Silver Company Limited ("EGSC"), a recognized electronic transaction member of the Chinese Gold & Silver Exchange Society ("CGSE") (CGSE No.: 102), holds a type AA license, while Emperor International Bullion Limited is a gold group member of CGSE (member: 240).
Risk Statement
Please note that all content is for reference only and not be interpreted as any trading advice. Emperor Bullion Limited is not responsible for the profit or loss of direct or indirect investment in the above information. Trading Over the Counter (OTC) Gold/Silver Bullion on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade OTC Gold/Silver Bullion offered by Emperor Bullion Limited, you should carefully consider your objectives, financial situation, needs, and level of experience. The possibility exists that you could sustain losses in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Emperor Bullion Limited recommends you seek advice from a separate financial advisor.
OTC Gold/Silver Bullion trading carries a high degree of risk and may not be suitable for all investors. The high degree of leverage can work against you, as well as for you. OTC Gold/Silver Bullion is not regulated by the Securities and Futures Commission ("SFC"), and therefore, trading OTC Gold/Silver Bullion will not be subject to rules or regulations promulgated by the SFC. Before deciding to trade OTC Gold/Silver Bullion, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain losses in excess of your deposited fund or even more in extreme circumstances, and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading OTC Gold/Silver Bullion and seek advice from an independent financial advisor if you require additional information.
Please note that commensurate with the opening/closing of the market for the underlying instrument, traders may experience gaps in market prices. Due to the volatility expressed during these time periods, trading at the open or at the close, can involve additional risk and must be factored into any trading decision. These time periods are specifically mentioned because they are associated with the lowest levels of market liquidity and can be followed by significant movements in prices for both OTC Gold/Silver Bullion.
OTC Gold/Silver Bullion trading allows you to potentially profit or sustain a loss from the fluctuations in the price of the underlying instrument. The price of OTC Gold/Silver Bullion is based on the price of the underlying instrument and is not traded on an exchange regardless of the status or location of the underlying instrument. Therefore, it is an over-the-counter (OTC) product, and you are trading with Emperor Bullion Limited as the counterparty to all transactions you undertake.
