Digital Silver

Gaining in popularity amongst investors, digital silver accounts allow individuals to buy and trade with silver as if it were any other foreign currency.

Though less popular than digital gold, digital silver (sometimes, called electronic silver) acts as an alternative currency in the same way. A digital silver account holder can use it as a form of payment with other account holders.

How does Digital Silver Work?

Similar to operating a bank account, cash is deposited and used to purchase silver that is held in the name of the account holder.

The silver held, or its ‘cash equivalent’ amounts, can be used at any time to pay for goods and services by transferring to another digital silver account holder.

If the account holder wants to withdraw his money, he would do so by requesting a withdrawal and receiving cash, just like a traditional bank account.

We recommend Bullion Vault which is similar to a digital silver program. With Bullion Vault you can buy and sell gold and silver stored in a vault. You can actually withdrawl your bars. Read our BullionVault review here or click here to check them out.

Buying Digital Silver

There are several digital silver providers, and accounts can be opened easily using a credit or debit card, or by direct bank transfer.

A good place to start a search for a provider of digital silver services is the internet. All have different offerings, charges, and benefits, so some time should be invested before selecting the best one for individual requirements.

Read our BullionVault review here or click here to check them out.

Risks associated with Digital Silver

There are risks of holding digital silver, just as there are risks of holding shares or other investment, or even cash in a bank account.
Exchange Risk

Digital silver rates move up and down against foreign currencies. Silver is bought and sold in US dollars, so the movement of the dollar against other currencies affects the value of silver in those other currencies. This is similar risk to that which a person would have by holding cash in a foreign currency bank account.

Risk of Management

If the decisions of the digital silver institution are bad ones, then deposits may suffer.

Digital silver providers are not regulated like normal banks. Many are self certified, meaning that they tell the markets the value and amount of silver held, and investors need to take them on trust. A good, long track record with a consistent management approach is a sign of a well-managed provider.

An investor researching digital silver providers should put corporate governance high on his agenda of selection criteria.

Political Risk

Often not thought of, the political risk of holding silver and other precious metals can be very real. Governments may ‘confiscate’ holdings of silver at any time. War, or change of administration, are typical examples of when such an event might happen.

Digital silver is a useful way to hold silver. It negates the need and cost of accepting physical delivery and storage, and is becoming popular as a method of payment and investment.

Any investment has risk associated, but it is easy to repatriate invested digital silver cash. The most important consideration for investors before committing funds to digital silver is to research providers and select the best for individual needs.

Looking for a place to buy silver electronically? Read our BullionVault review here or click here to check them out directly.

Looking for a precious metals provider that sells silver coins and bullion (including junk silver)? Click here to visit our favorite provider (FREE SHIPPING!).

Silver Investing | Silver Bullion And Coins | Junk Silver | Silver ETFs | Digital Silver | Silver Certificates | How To Sell Silver

Digital Silver

Return to Top