Why Invest in Silver in India

Gold and Silver are known to be one of the most precious metals, and globally it has been accepted as the standard and profitable commodity. For investment, these two are the preferred choice for many. Whenever you spend your money on buying silver or gold, it is considered to be building up your physical assets. Investment in gold has its own charm and no other thing can beat that, but silver investment is also becoming popular in the present times.

Reasons to Invest In Silver

Every individual in the society is not financially sound and thus, everybody cannot invest in gold and for all these people investment in silver is a great option. Silver is an affordable asset for all. There are so many reasons why you should invest in silver. Let us talk about a few:

  • Easily available: Our Earth is an abundant source of silver. In comparison to gold, the supply of silver is higher today. So, if you invest today, you will sow the benefits in the long run. Gold is usually stored in banks or lockers. It is a commodity for accumulation only, but silver is an international trading commodity.
  • Low cost: As silver is comparatively lesser in price than gold, people from every background can afford to buy and invest in it. For example, let’s consider the Gold price is 30,000 per 10gm and Silver is appx Rs. 450 per 10 gm. If someone wants to invest Rs. 100,000, then within their budget, they can only be able to buy around 30 gm of gold whereas if they go for investing in silver then they can buy around 222 gm of silver. This example itself indicates the reason for investing in silver.
  • Industrial applications: Silver has a large usage in industries such asmobile manufacturing companies, making lead acid batteries, solar panels, and computers, etc. No other precious metal can replace silver. It is the superconductor of heat and electricity. So the industries have a huge requirement in their electrolysis process and many other applications. Therefore, silver will never lose its importance, and the demand will be more with time. So it is a good option to invest in silver. If you invest today then definitely after 2 to 3 years you will get double profit on your investment.
  • Medicinal usage: Silver has a huge medicinal usage. It helps in dressing of the wounds, creams, etc. It also has an antibiotic coating on the medical devices. It is required in the pharmaceutical industries. So by observing the healing properties that silver demands, you can make up your mind to invest in silver.
  • Uprising demands: Silver is considered as an international trading commodity like said earlier. At a very economical price, it is traded in the international market. If you consider the international market analysis done during 2001-2018, the Silver price has grown exponentially. So its uprising demands encourage investors to invest in silver.
  • Silver, a real money: Silver and Gold is the form of money. In exchange, you will definitely get its monetary value. So investment in silver will give good returns.
  • Hard Asset: Silver is one of the hard assets, which you can carry in your pocket and travel wherever you want to. You can liquidate it anytime anywhere in the world. In a way, it is somehow better than a silver paper bond.
  • Less risk: As a cheaper commodity there is a less risk in the silver investment. The price fluctuations do not affect the silver so much.
  • Monsoon: Monsoon also affects the price of gold and silver. A weak monsoon weakens the gold price as demand in rural areas for gold declines. . Due to such conditions owing to a lower price, silver does not get affected by the weak monsoon. This makes it more practical to invest in silver vis a vis gold.
  • Worldwide demand: In the international market silver demand is growing tremendously. In western countries, silver is very popular being a white metal. People are investing more in this metal. So it is a good time to invest in silver.

If you want to invest in silver in the international market, then you can own silver funds through Exchange Traded Fund (ETF) or you can go for iShares silver trust and Stock traded on NYSE.

In India the demand of gold is increasing day by day. Due to this humongous demand, gold has to be imported from other countries, for which rupee value crashes down. Gold love in India is one of the major reasons for economic instability in the nation. So the Indian Government is trying continuously to lessen the gold import from the foreign countries by taking measures in so many ways. On the other hand, it widens the path of silver. The value of silver is rising continuously. It is thus, a golden opportunity for silver investors. A small substitution from Gold to Silver can create a remarkable increase in silver price. Suppose there is a 10% substitution in Gold to silver investment, then India would definitely face double profit in silver investment.

FAQs On Ways to Investing in Silver in India

What is the Silver rate these days appx?

Silver rate per 1gm is Rs.41.50. So for 10 gm, it is Rs.415.

How can people invest in Silver in India?

You can go for investment in silver by buying Silver bar or coin for a time period of 0-5 years. Unfortunately, there is no ETF facility in India.

Is it a good idea to invest in Silver?

It’s been thousand years and more that silver is considered as a profitable commodity to invest in. It has many usages in industrial, medicinal properties and in making ornaments. It is a very wise decision if you want to go for investing in Silver.

Is Silver better than Gold for investing?

Both silver and gold are considered as a valuable commodity to invest in. It purely depends on the buyer’s choice where to invest in.

Is Silver a good long-term investment?

If you compare silver with gold, then certainly silver is more affordable. You can spend your money on buying Silver coins or bars and go for investment. Yes, Silver is a good long-term investment.

Where can we buy Silver and gold for investment?

You should always buy gold and Silver from a trusted supplier or from Government directly so that you can get the pure form of the metal.

Is Silver a safer investment?

Yes, investing in Silver metal is a safer option.

Should we go for physical silver investment?

If you don’t think it’s safe to store physical Silver at your home then you can go for the option like investing silver in the commodity market. You have to open an account with a reliable broker, buy silver contracts online and then you can sell when you see a profit before the expiry date.

Should I invest in Silver?

Yes, in this current scenario, it is advisable to invest in Silver.

Could Silver beat Gold?

As the demand for Gold in India has never been down for decades, at this point of time silver cannot beat Gold. It cannot beat in the next century also.

Is physical silver a good investment?

Yes, definitely physical silver investment is also a good investment.

Is investing in silver good for beginners?

Yes, for beginners it is wise to invest in silver first rather going for gold. Less risk is associated with the silver investment.

Is India holding Silver massively?

No, India doesn’t massively hold silver the way it holds gold. In a study, it has been revealed that the average household savings are 78% gold.

Is silver losing its ground because of weak currency?

Yes, somehow value of Indian currency in the International market affects the Silver value. It is directly proportional to the value of the currency.

How monsoon affects in Gold and Silver price?

Monsoon also affects the price of gold and silver. A weak monsoon weakens the gold price as demand in rural areas for gold declines. Due to such conditions owing to a lower price, Silver does not get affected by the weak monsoons.

Can we liquidate silver in need?

Silver is one of the hard assets, which you can carry in your pocket and travel wherever you want to. You can liquidate it anytime anywhere in the world.

How should be the initial Silver investment?

At the initial stage, you might not have any experience about the investment, its risk, and its returns. So at the beginning take small steps. Go for pure Silver bars and coins in smaller quantities. You have to pay a less premium over the actual metal value. One should keep in mind that you never go for the decorative Silver coins or jewelry for your investment. These items carry a large premium and their value degrades during resale. After gaining experience and building a strong connection in the market, you can opt for larger purchases and invest.

Why should we go for bank lockers to store silver?

You should consider the safety factor and safeguard your silver investment. Choose a bank and take a bank locker to keep the silver. Your investment will be under the bank’s custody and you can have a peaceful sleep at your home.

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