If you have been dazzled by the rise in gold prices over the past one year, you probably did not have the opportunity to look at silver prices. With its spectacular rise, it could have blinded you. Consider this: in the past 1 year, the prices of silver in the global market has risen by more than 36%. In the Indian markets, the price has gone up by slightly less, but still by a phenomenal 32%.
Experts are almost unanimous in their view that silver prices will keep marching northwards and prices could even reach Rs 1 lakh a kg from the current levels of Rs 91,590. Let’s see how you can buy silver to participate in this huge rally in prices.
Invest in Silver ETFs
Like gold ETFs, one can also invest in silver ETFs or exchange-traded funds. These pool funds and invest in physical silver or silver-related instruments and for this reason the NAV of silver ETFs is directly linked to silver prices. However, one needs a demat account to invest in ETFs.
One can buy silver coins and bars too. Usually, one buys coins for small investments and bars for bigger ones. Since coins don’t cost too much, one can regularly buy some and later sell them for a profit. Buying from banks or reputable jewellers is advised. Banks, however, sell only coins and not bars. Insist on purity certificate.
If you regularly invest in physical silver (bars, coins), remember to store them in the safe deposit vault of a bank. Keeping a significant quantity of precious metal at home might not be a good idea since it might get stolen and you might lose your sleep over it.
Track global price movements
Indian silver prices are dependent on global prices since India imports thousands of tonnes of silver every year. In H1 of 2024, 4,554 tonnes of silver were imported into India which is far higher than the imports in the corresponding period in 2023.
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