There is no doubt we have a soft corner for precious metals like gold or silver. In the past, people preferred investing in gold only. But with the uncertainties in the stock market, investors prefer keeping a Stepney and silver could be the great option in this regard. Owing to steady silver prices, most of us are opting this as a long-term investment. However, before you spend your hard-earned green, here are some pointers to be nailed down:
High Variability: Gold and silver are always in demand due to its flexibility. These can be easily converted into paper-money. They both are famous globally and accepted everywhere. So, chances are very less that the demand will decrease.
Security for Applying Loan: At the time of claiming a loan, you can use silver bars as a security. Globally accepted silver helps you getting a loan in a hassle-free manner.
Buying Alternatives: If you chose silver for investment purpose, then there is nothing better than buying silver coins and bars. Though other options in the form of jewelry or silverware are also available, these are not pure forms and involve making charges as well.
Consider the Risk Factors: Investment in gold and silver involves risk as the prices for both depend on the condition of share market. So, it is mandatory to keep an eye on what’s going on globally and decide to invest.
Investor Earns no Income Except Value Appreciation: You don’t earn interest out of silver like you do from a saving bank account. The only profit one can earn by investing in silver through its appreciated value in future. However, silver prices fluctuate as per the market value or condition of the share market.
Storage: Storage is a concern when it comes to investing in silver. You may not find it feasible all the time to store a silver bar in the home at security point of view. When you keep it bank, you will be charged for the same. So, make your investment plans accordingly keeping these this on priority.
A Small Suggestion: Not choosing a lump sum investing, you can invest in silver at regular periodic gaps to avoid the risk of sudden increase or dip in silver prices or stock market uncertainties.
Ways to Investment in Silver
India being among the major consumers of silver, one may find below investment options for silver convenient:
Invest in Silver Bars and Coins: Silver bars and coins can be bought up to 24 carat. Even you can approach a bank for this, where you can avail it in the multiples of 50 grams.
Silver Jewellery: This is one of the traditional yet popular methods of buying silver in India. Always look for ‘925’ hallmark that stands for its purity and authenticity and indicates it is 92.5% pure.
Silver futures: Commodity exchange like MCX India makes it easy to invest in silver stocks. You are liable to pay the price as per the ongoing silver rate on the delivery date. Hereby, the amount and quality of silver are pre-decided through a previous contract.
One you appreciate investing in silver for long-term since you may not like the short-term returns or it may not be fruitful. Always keep your eyes open when it comes to investing in precious metal like silver, judge the proper time and then only go for it.