The price of silver has crossed Rs 3 lakh per kg for the first time on January 19. In the last one year, the price of silver has increased by more than Rs 2 lakh. That means its price has increased by more than 200%. According to experts, industrial demand for silver is increasing. Due to which silver can go up to Rs 4 lakh this year. In such a situation, if you are planning to invest in silver then silver ETF can be the right option. Through this, you can invest in silver like shares. In this you can start with very little i.e. Rs 300. Here we are telling you about Silver ETF… What is Silver ETF? Silver ETF i.e. Silver Exchange Traded Fund. To understand this, just know that this is a fund which is based on silver prices. You invest money in it, and this money increases and decreases according to the price of silver. But in this you do not need to buy real silver. Neither safe nor locker is required. All this is done by the fund house, and you can simply buy and sell it like any share through a demat account on a stock exchange (like NSE or BSE). How does this work? The fund house of a silver ETF buys real silver, which is 99.9% pure. Now the price of the ETF you buy is based on the market price of silver. If the price of silver rises, so does your ETF. And it is also easy to sell, just sell it in the stock market during trading time. There are many benefits of investing in silver ETF. You can buy silver even in small quantities: Buy silver in units through ETF. This makes it easier to buy silver in small quantities. The price of 1 unit of Silver ETF is currently around Rs 150. That means you can start investing in it with Rs 150. Silver remains safe: Electronic silver is kept in the demat account in which only annual demat charges have to be paid. Also there is no fear of theft. Apart from the risk of theft of physical silver, there is also expenditure on its security. Ease of Trading: Silver ETFs can be bought and sold instantly without any hassle. That means you can sell it whenever you need money. There are also some risks: Price fluctuations: Silver prices sometimes change very rapidly. If the market falls, the value of the ETF will also fall. Depending on industrial demand: Apart from jewellery, silver is used in solar panels, electronics, and medical equipment. If demand in these industries decreases, the price of silver may also be affected. Things to keep in mind while choosing a silver ETF: Fund house: Always choose an ETF of a fund house which has a good track record and low management fees. Tracking Error: Some ETFs do not track the price of silver perfectly. In such a situation, give preference to ETFs with less tracking error. Long Term Investment: Silver prices fluctuate in the short term, so take a 3-5 year perspective.
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Silver crosses ₹3 lakh: More than 200% return in last 1 year, you can invest in it through Silver ETF
