What Is the Silver Price in Canada?

While the uses and the silver price in Canada have evolved throughout the years, it remains a precious commodity with significant market demand. Often correlating with a drop in the dollar’s value, demand for precious metals rises during times of economic instability. 

Continue reading to learn all about the costs, as well as techniques and hazards of buying silver in Canada before investing. 

The Average Price of Silver in Canada

The average silver price in Canada varies. However, one ounce of silver costs between $31 and $37 at the moment. 

Currently, the average price of silver per gram in Canada ranges between $1 and $1.10. Accordingly, for $100, you can get about 3 ounces or 100 grams of silver, which is around the weight of a deck of cards.

How Much Do Canadian Silver Coins Cost?

The Royal Canadian Mint is one of the world’s most prestigious and cutting-edge institutions. The official sovereign mint of Canada, RCM is most famous for producing the Canadian Maple Leaf, the country’s official bullion coin. The current price of the Silver Maple Leaf Coin is $34.88 per ounce, and $34.85 for Silver Maple Leaf Coin from 2015 or later.

There are other antique silver coins that you can purchase, such as coins from 1919 and earlier coins, whose price is $16.35 per ounce, 1920-1966 coins, which cost $14.14 per ounce, 1967 coins, which cost $11.14 per ounce, and 1968 coins, which cost $8.84 per ounce. 

You can also find 1976 Montreal coins of $5 and $10, whose price is $18.46 and $36.92 per ounce, and other miscellaneous silver coins, which cost between $0.38 and $0.71. 

COVID-19 Impact

With the economic shock created by the epidemic, gold and silver have been at the forefront recently as a means of conserving wealth. Many Canadian mining corporations reduced or postponed field activities to prevent the COVID-19 virus from spreading further. 

However, some investors have sold precious metal holdings to help offset some of the harm caused by the losses during the pandemic. Silver prices in Canada were particularly vulnerable, falling nearly 6% by the close of the New York trade as concerns about a global recession grew. The metal also faced a weaker outlook for industrial demand. 

The Royal Canadian Mint’s temporary suspension of non-critical manufacturing in March 2020 was only the tip of the iceberg. The silver price in CAD varied from $17 to $37 in August 2020, representing the year’s peak.

How Do Silver Prices in Canada Compare to Gold?

Because gold has a low or negative correlation to other assets, investors utilize it to diversify their portfolios during times of crisis. Stock prices collapsed in March 2020, so investors have shifted to less risky assets like gold due to the bear market. 

Because of these and other causes, the price of unwrought gold and gold alloys increased by 28% in March 2020 compared to the same month the previous year and increased 127% between March 2008 and March 2020. The price of gold ranged from $1,970 to $2,649 in 2020. 

Who Produces The Most Silver in Canada?

In 2021, Ontario was Canada’s largest silver producer, producing 107.4 metric tons of silver. British Columbia holds second place in Canada for producing silver, with 102.8 tons, followed by Quebec, with 70,1 tons, Manitoba with 35.9 tons, and Nunavut with 4.11 tons, in the last place. 

How to Invest in Silver?

Buying silver ETFs, silver stocks, silver futures, purchasing the physical metal, or purchasing silver mining stocks are all options for investing in silver. What you’re looking for will determine which option is best for you. Let’s go over the most popular methods:

Buy Silver ETFs

Assume you want to buy silver in Canada. You believe silver’s demand will increase, or you wish to diversify your portfolio with silver. You also want to be able to jump in on the action without having to worry about storing the metal and cashing it out immediately. If this sounds appealing, investing in a silver ETF can be the right decision. 

Silver ETFs try to track the silver price in Canada today as closely as possible while avoiding costs. The ETF does own genuine silver bars in a bank in Canada, and you may usually trade your shares for the metal. 

You can buy and sell silver ETFs just like conventional stocks. Below are some examples of exchange-traded funds that you can purchase.

With a market cap of over $15 billion, iShares Silver Trust (SLV) is one of the largest silver ETFs in the world. It is only available on American exchanges, so you’ll need to convert your money first. 

Because you can redeem your shares for actual silver, the Royal Canadian Mint – Canadian Silver Reserves (MNS.TO) isn’t exactly an ETF, but it performs similarly.

Buy Silver Stocks 

Over the last year, silver stocks, as represented by the Global X Silver Miners ETF (SIL), have tagged the overall market. In this period, SIL has delivered a total return of -6.7%, well below the benchmark Russell 1000’s total return of 8.3%. Here are the companies with a market cap above $10 million to help you decide when investing: Canada Silver Cobalt Works, Outcrop Silver & Gold, Stroud Resources, Santacruz Silver Mines, and Summa Silver.

Buy Silver Futures

Silver futures are a simple way to bet on the increasing or decreasing silver price without dealing with the inconveniences of owning physical silver. Because of the high level of leverage available in futures contracts, silver futures are a compelling option to play the silver market. 

To put it another way, acquiring a significant stake in the metal requires a small sum of money. You can gain a lot of money quickly if silver futures move in the right direction, but if you’re wrong, you can lose a lot of money fast.

Buy Silver Coins and Bullion

Investing in silver coins or silver bullion in Canada is an excellent method if you want to have it in your possession and use it if necessary.

You can benefit from silver coins and silver bullion if the silver value in Canada rises, but that’s the only way you’ll make money because the actual commodity, unlike quality business, does not provide cash flow. 

Local dealers and pawnshops, and internet sellers like APMEX and JM Bullion, are some of the places where you can buy silver. You can buy silver bars from specialized vendors in Canada rather than just coins. 

Invest in Silver Mines

You can profit from a growing silver market by investing in the equities of silver mining businesses in two ways. To begin with, if the silver price goes up, the company’s earnings should rise as well. 

If all other factors remain constant, silver miners’ products will climb faster than the price of silver.

Second, the miner can steadily raise output, hence increasing profits. Over and above simply betting on the price, this is an additional option to profit from silver. 

Is Silver a Good Investment?

Silver appeals to investors for many of the same reasons that gold and other precious metals do. Here’s what to keep in mind before investing:

Pros of Investing in Silver

Silver is a liquid and safe asset. It has a wide range of uses. Silver is also in demand in a variety of sectors. 

Inflation reduces the purchasing power of paper money. Silver, like other precious metals, has shown its worth throughout history, so you can use it as an inflation hedge. 

Silver is a safe investment that never loses its lustre. There will never be a moment when silver is no longer essential. Furthermore, any change in currency value will always have the opposite effect on the silver price in Canada.

When compared to gold, silver is a bargain. If you are an average investor, it is a low-cost asset that can readily shield you from financial catastrophes. 

Cons of Investing in Silver

Although it seems like an excellent opportunity, silver has risks and disadvantages.

For instance, owning physical silver bears the danger of being tarnished, misplaced or stolen.

If you buy physical silver coins or bars, you’ll need to find a secure place to store them. Your silver broker or dealer may offer to keep your silver bullion for you, but you’ll have to pay a regular storage fee for this extra service. 

On the other hand, if you’ve invested in silver stocks, you need to be aware that the silver market value can change dramatically over short periods. Additionally, the silver market is much smaller than other precious metals.

Finally, silver is less expensive compared to gold since there is a larger supply of it accessible. Because of its application, silver is a better inflation hedge than gold. However, the silver price in Canada can be more volatile. Also, silver is less liquid, and it is harder to store than gold. 

Conclusion

Investing in silver is not for everyone, and some investors would instead focus on cash-flowing enterprises than the metal itself. Businesses offer various opportunities to profit, so investors like Warren Buffett prefer them to commodities. 

Stocks and ETFs are more accessible and less expensive to buy than physical silver, although they are more liquid. Still, owning bullion eliminates the need to interact with an exchange or a company and ensures that your investment is protected.