10 Rules for Silver Investment in India

You need to consider investing money in precious metals as they can give you good returns as well as safety in the long run. It is well known that the value of this asset does not decrease by a huge margin unlike other assets and you can invest a part of your savings in them. In this regard, many people favor gold as it is more valuable and attractive for jewelry and other things. However, when it comes to silver, you can expect better returns and it is having good demand in the international market. You can easily buy it in the physical form from the nearby trusted jewelers or get them from reputed firms. If you plan to buy some coins, you can even get them from banks as they have transparent silver price in India and start saving money on them. On the other hand, when you want to invest lump sum money on this asset, you can buy them in the commodities market and get to earn good returns in future.

If you are also planning to invest money on Silver, you can compare the rates with different suppliers and choose the best option. Make sure that you check the silver price in Bangalore and other major cities so that you will get some fair idea about its current price in the market. Also remember that the price for physical silver and the contract ones available in the commodity market will be different and you will also have to pay additional money if you are planning to get them in the form of jewelry. You can even get in touch with your financial advisor to know about more options suited for your investment plan.

1. Choose Silver Coins for Small Investment

  • If you are planning to invest only few thousand rupees into silver, you can consider buying coins instead of other forms.
  • It is very easy to get them and you can even store them easily at home. However, you will be paying slightly higher rate when compared to silver bars as coins are usually having some form of art or images and the labor charges for this will be added to the price of silver.
  • On the other hand, it also has advantages in the sense that you can buy silver with very less money in this manner and this is suitable for salaried individuals and business people who want to save money on regular basis by investing money in silver.
  • You can accumulate some coins every month according to your capacity and it is also possible to sell them at a later stage when you want to liquidate your investment.
  • Yet another advantage of choosing this option is that you can get them from banks and it is also possible to buy them from reputed jewelers in your neighborhood. You will even get a certificate about its purity and this will be useful when you have to sell them back into the market.
  • You need to remember that banks will only sell silver coins and will not buy them back at a later stage. You have to approach jewelers to sell your silver coins if it is needed in future.

2. Choose Silver Bars for High Investment

  • When you have the capacity to invest lump sum money into silver, you should be careful about where you buy them from and always check silver price in India from reliable sources.
  • This will help you to get the best deal in the market and you can select silver bars instead of coins. These are simple and do not have any artwork on them unlike the coins and jewelry.
  • For this reason, it is slightly less in cost as there is not much labor work involved in processing them. You will also be able to store them conveniently and it can be easily disposed in the market through the local jewelers.
  • You may not get them through banks as they are bulky and banks prefer to sell only packaged coins that are certified from reputed sources.
  • However, you can approach jewelers who will conduct tests on such silver bars and get them tested for their purity before buying them from the market.
  • You can invest bulk money on such silver bars and easily save money for your future. As the silver bars have good demand in the market, you will not have any problems when you want to sell them at a later stage.

3. Make Good Use of Online Commodity Market

  • If you are not the kind of person who will invest in physical silver, you can still invest in silver through the commodity market.
  • All you need to do is to open an account with a reliable broker and you can buy silver contracts online from the MCX market.
  • The investment needed will be slightly high when compared to regular silver and you will have to pay a certain percentage of the entire value of contract.
  • Make sure that you have sufficient funds to pay for additional margin requirements due to fluctuations in silver price in the international market.
  • You can easily sell the contracts at a later stage before expiry whenever you are getting decent profits.
  • This is slightly speculative in nature and cannot be considered as a pure form of investment. However, you will be able to leverage your position when you invest wisely in the commodity market.
  • Make sure that you watch the price movements carefully as they will be different from the actual physical price of silver. You can also check the silver price in Bangalore or other major hubs to get a comparison about price fluctuations in market.

4. Always Buy from Reputed Suppliers

  • Even though you can buy silver coins and bars from any source, it is always a good idea to buy them from trusted sources.
  • When it comes to coins, you can easily choose them from banks even though they charge some premium over normal silver price in India. However, it is worth considering the fact that this is certified and you will be able to buy them in small quantities.
  • On the other hand, when it comes to bars, you have to approach local jewelers and get the bars tested from reputed sources for purity.
  • In this way, you can be sure that they are pure and you will be able to get the best value for your money in future.
  • Never buy them from unknown traders in the market as you will have difficulty in ascertaining the purity of the bars on your own and there are chances that you may get cheated in such deals.

5. Secure Them Safely with Bank Lockers

  • Many people make the mistake of keeping the silver bars at home and this will become a huge burden when you have large quantity of them.
  • You will have to provide proper security for them and they soon become a liability than an asset.
  • For this reason, you should never compromise on the safety factor and always choose bank lockers to safeguard your silver investment.
  • It costs very less to take bank lockers and you will be completely relieved that your silver is safe in their custody.
  • As you have ready access to your silver at any point in time, you need not worry about anything and easily choose this option.
  • If you store them at home, there is a chance of theft or burglary and you may lose your entire investment. Even otherwise, you are sure to lose your peace of mind when you have large quantity of precious metal at home due to security reasons.

6. Track Prices from Different Sources

  • When it comes to investing in silver, you need to understand the fact that rates keep changing on a daily basis and sometimes there will be price difference even within a single day.
  • For this reason, you should always check silver price in Bangalore and other important cities so that you will be able to get them at the best price in the market.
  • This is especially needed when you are buying silver bars from local traders as you will be able to get the best deal when you have thorough idea about the current market rate of the metal.
  • Also remember that the commodity market rate of contract silver will be different from the physical silver and you should not confuse between them when you are buying silver coins or bars.
  • There are many apps and other sources that will provide complete up to date information about the latest silver price in market and you can use them on your mobile phone to get the exact details.
  • This will be handy during your purchase and you can expect to save some money during the transaction.
  • This is true even when you are selling silver and you will be able to get good price for your investment.

7. Never Buy Everything at Once

  • When the price of silver in the market is attractive, most people are tempted to put all their investment at once and this can be a huge mistake in future.
  • You can never predict the future price of any commodity and you should always buy them in installments so that you will be able to get the average price over a period of time.
  • You should plan this depending on your investment horizon and when you plan to hold them for a few years, you should at least span your investment over few months so that you can buy them at different rates.
  • In this way, you need to track silver price in India for some time before you begin your investment in this commodity.

8. Do not Hesitate to Sell When Price is High

  • Just because you have chosen it as a long term investment does not mean that you should hold them for the entire duration.
  • Be practical about your investment in silver and sell them when you are making a decent profit. Remember that you can always buy them back when the price falls at a later stage and this will mean that you keep making money every now and then due to the price fluctuation in the market.
  • For this purpose, you need to compare silver price in Bangalore with other regions of the country and this will give you fair idea about where you can get the best deal in the market.

9. Always have Reserve Cash for Good Deals

If you plan to invest few lakhs into this commodity, make sure that you have a reserve cash of at least twenty percent for emergency deals.

  • The silver price in India fluctuates due to impact of global markets and you may get a good deal once in a while due to market crash.
  • When you have reserve cash, you can buy some silver at this point and get to make some money at a later stage. This will also help you to average your silver purchase and you can safeguard your investment in the long run.

10. Keep Track of Global Financial Markets

  • Always remember that global financial markets impact the price of silver in any place in the world and our country is not an exception.
  • When there is panic in the global financial markets, you will notice that the silver price in Bangalore and rest of India will go up by a huge margin.
  • You need to be aware of such movements in the market and plan your investment in this commodity.
  • Apart from that, you should also follow the remaining guidelines given in this article to get some profit out of this commodity in the long run.

Finally, you need to consult a reputed financial advisor when you plan to invest in silver for many years. They can explain the entire pros and cons of your investment plan and guide you to choose the right options suited for your risk profile. In this way, making good money out of your investment becomes an easy task and you will be happy to invest money in such commodities in future.


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