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Ever since civilization started, it is known that Man has learned how to invest his hard earned money to get some interest in return. Many Investment plans are available nowadays where you can save your money on a long-term basis in the capital market and get a huge profit. Central and State Government issue long-term bonds like a Gold bond, Railway bonds, National Savings certificates etc where people can get a compounded interest on their savings. Investment in Government securities can allow you to enjoy tax rebates. You can also go for buying at a point and reselling when you see the price hikes.
Investment in precious metals like Gold and Silver is considered to be a wise decision in the financial market. If you are a small investor and you have a low capital for investment then instead of going for Gold bonds, you can go for Silver investment. You need to go through the rules and regulations, take advice from the finance experts, observe the market situations and then go for any kind of investment. There are certain points you need to consider before Silver investment.
Before investing in silver, there are a certain types of questions that will come to every investor’s mind. Below is a quick guide to help you answer such questions.
Nowadays, people get options to invest in silver just as you used to do in equities. There are various forms of investment for silver. Some of the investment varieties are as written below.
Is investing in silver better than investing in gold?
Though gold has more value than silver, it is surprising to see that people of every nation is investing more in silver than any other precious metals. Not to mention, gold is one of the precious metals. Gold is bought only for accumulation. Silver has all kinds of industrial applications. In addition, investors can easily trade in silver at an economical price.
Is silver a safe investment?
When you compare gold and silver, Gold is a risky asset. And according to economists, it is not a wise option to invest only in gold. Along with the investment in risky asset, it is always advisable to invest in a risk free low valued assets. Silver is one of the options to go for. The value will never depreciate and you will not block your money investing a huge amount.
Can I invest in silver with little money?
Unlike gold, where you need to invest thousands of rupees, silver coins can be bought with a few hundred rupees. The return on investment for silver with a CAGR for 8.8% yields profits.
Is Silver a good long-term investment?
If you compare silver with gold, Silver is more affordable than gold for the returns that you can expect from an investment point of view. Investing in Silver coins or bars would certainly make a good investment. Simply because, five to ten years down the line, if you sell the coins, it will be of a higher value.
Should we go for physical silver investment?
It is always advisable to invest silver as a commodity market. You have to open an account with a reliable broker, buy silver contracts online and then sell when you see a profit before the expiry date. However, increase in demand for the silver metal is creating a risk for people in the future. Market should be in a good position for people to invest in silver. With the increase in demand and less supply, the value of silver is increasing. It is your choice whether you go for silver investment or not, but before going for the investment you should research the market properly and take advice from the finance experts.