New Delhi55 minutes ago
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This year the price of silver has more than doubled to Rs 1.75 lakh per kg. This is the biggest rise in the price of silver in history. At the same time, it has given 37% more returns than gold.
In such a situation, the question in the minds of many people is why are the prices of silver increasing so much? Is this the right time to buy silver? What are the safe ways to invest in silver?
You will know the answers to these questions in this story…
Question 1: What are the reasons for doubling of silver prices?
Festive Season: India is one of the largest consumers of silver in the world. Buying gold and silver on Diwali-Dhanteras is considered auspicious. Due to this the demand for silver has increased.
industrial demand: Silver is mostly used in solar factories. Apart from this, the use of silver has also increased rapidly in AI industry and electric vehicles.
lack of supply: Demand for silver is increasing, but its supply is being disrupted. Planned mining has reduced in some countries due to environmental regulations or mine closures.
Apart from this, about 70% of other metals like silver, copper and zinc are released as by-products during mining. Unless copper mining increases, the supply of silver cannot increase. Due to this huge gap between demand and supply, there is a shortage of silver for the fifth consecutive year.
Question 2: Is it right to invest in silver at this time?
answer: Market experts believe that silver prices are at record high, hence aggressive buying should be avoided…
- Renisha ChenaniAugment’s Head of Research, says US shutdowns, tariffs, and Fed rate cuts are driving investors to buy silver. He said the long-term bullishness may continue, but given the short-term risk at record levels, one should avoid new purchases and wait for the decline.
- Ajay KediaDirector of Kedia Commodity has said that silver has already shown 100% gain, hence aggressive buying is not right now. But over the long term, silver will appreciate especially faster than gold. At the end of 2024, he had described silver as the first choice for investment in the first half of 2025 and advised to take entry through ETF.
- Anuj GuptaHead (Commodity and Currency), HDFC Securities, said that silver is currently at a more attractive value than gold. They say, the price hike of silver is due to industrial demand. Due to low interest rates in China, factories are running at a fast pace. He believes that this bullishness will continue with ups and downs. One should buy on decline.
Question 3: How can one invest in silver?
answer: There are 3 popular ways to invest in silver…
physical silver: This is the most direct method. You can go to the market and buy silver coins or bars. There is a concern about theft or purity, hence only BIS hallmarked silver should be bought. It can be purchased from well-known jewellers, banks and online platforms.
Silver ETF: This is a fund which is based on silver prices. In this the money increases and decreases according to the price of silver. These are traded like shares on the stock exchange. To buy it, it is necessary to have a demat account. No need to worry about theft or purity.
Silver Futures: This is a method of trading where you enter into a contract to buy or sell silver at a specified price at a future date. This happens on MCX (Commodity Exchange). In this, you can buy or sell higher value silver with margin by investing less money, but the risk is higher.
Silver gave more returns than stock market, gold, FD
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