Physical Silver & Gold vs Paper

Over the last week, the biggest financial news story in the world is about how a Reddit trading group, wallstreetbets, is taking on Wall Street. You may have been living under a rock to have not heard about recent market events.

The same group that took credit for short squeezing stocks like GameStop and AMC made a post about Silver. That post was all it took to get the investment world in a frenzy to start buying.

Many new to investing in Silver may not know that there is a big difference between holding paper silver and physical Silver.

The main question on everyone’s mind is Gold vs Paper Gold.


Paper Gold & Silver

Similar to fiat currency, most Paper Silver products are not backed 1 for 1 by the real thing and therefore can be sold with virtually an endless supply. Examples are Exchange Traded Funds (ETFs), Exchange Traded Products (ETPs), Futures, Options, and more.

Investors generally use these types of products to speculate on short-term price fluctuations. While we all know investing in Gold and buying Gold is a wise decision, is it a wise decision to lean on Paper Gold ETFs?


Physical Gold & Silver

Like all things tangible, Physical Silver has to be sourced, from mining it out of the ground to manufacturing it into coins and bars to shipping it to depositories and investors. There are costs involved in each of these actions which need to be accounted for in the end price.

Investors who prefer physical options tend to have a mid to long term investment strategy. Some of the primary reasons given are wealth preservation, growth in value, and protection from a fiat currency collapse.


Understanding the Premium for Physical Silver

If you have bought investment grade physical precious metals of any kind, you likely have heard the spot price. It doesn’t matter if you are looking at Gold Bars, Gold Coins or even Gold Bullion. The Silver spot price is the universal cost of one ounce of that (Silver) precious metal in its raw form.

At the time of writing this article, the spot price for Silver is $28.32. You can see the 24-hour spot prices at

Again, if you want to know the price that Gold is trading in the Gold markets, you simply want to check the Gold spot price. If you want to find out the price that Silver is trading in the Silver markets, check the Silver spot price or even the silver futures price.

From the spot price, there is an amount charged over spot which is based on various factors.

  1. Manufacturing: A coin has a higher cost to produce than a bar. A smaller coin or bar will cost more, as a percentage of the value, to manufacture than a larger coin or bar.
  2. Supply & Demand:  When there is a high demand for anything tangible, causing less available supply, the price will always go up.

*Many times there is a disconnect between the spot price and the physical price, causing premiums to increase at a faster rate than the spot price. (which we are seeing this today)


What is a good price for Physical Gold & Silver? 

When considering an investment in physical metals, one must always be aware of the spot price and how much over per ounce a product costs. Check with multiple reputable dealers online to verify that you are getting a competitive price.

For Silver, $2-3 over spot is the lowest price you will find during the best of times. Other times, like right now, it is hard to find even a 100-ounce common bullion bar for under $6 over spot. It’s best to not worry too much about comparing Silver Eagles vs Silver Bars, you just want to focus on it being genuine Silver.

Today, I see many of the most reputable dealers online sold out of almost all silver bullion products. The products they are selling are going for premiums 2-5x what they were going for only last week. While these premiums may come down, they arguably have an equal chance of going up further.

Do you think that central banks and the paper traded silver markets are scared that the world is waking up to Physical vs Paper Gold & Silver? We think so.


Bloomberg: Silver Coin Sites Seize Up as Buying Frenzy Takes Hold


What about Gold & Silver in my IRA / 401k? 

One of the biggest opportunities for investors to take advantage of is their retirement accounts. This provides immense tax benefits and savings that can allow investors to compound gains much quicker than with traditional taxable brokerage accounts.

We have specifically built our platform to allow investors to hold Physical Gold and Silver inside of their IRA / 401k with near-zero friction. You simply create an account, fund it, and then can trade 24/7. As mentioned above, we have transparent fees and even provide institutional-grade storage of precious metals.

iTrustCapital connects clients to Kitco’s VaultChain, which offers the Physical Gold & Silver bullion. If you haven’t started purchasing Gold & Silver within your retirement accounts, right now might be a good time to consider.

Today, physical silver can be purchased for $3.50 over spot per ounce. In addition, physical gold can be purchased for only $50 over spot per ounce. We do not see any supplier selling physical silver for less.

You can see all of our costs anytime on our website. If you do happen to find a provider that offers Gold and Silver in IRA’s for cheaper, please let us know.

We pride ourselves on not only being the lowest cost provider but having the best platform and client experience as well.


Learn more about owning physical silver and gold in your IRA by reading our recent articles that talks about why the future of Physical Gold and Silver has already arrived. The Future of Physical Gold & Silver Investing