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Modified 12 June 2018
From an investment point of view, precious metals have been a much-coveted commodity for ages. Silver and gold are highly sought-after not only because of their lustrous beauty, but also because they are a lucrative investment option. Though, as an investment, silver is not as popular as gold, it is in fact, a smart and practical investment these days. However, as it is under the constant shadow of gold, price of silver is influenced by every single move in the gold market and the currency. However, if you are considering silver as an investment option then you would be happy to know that it has the potential to yield handsome returns. In recent years, a significant increase in supply and demand has been noticed for this precious metal. Hence, investing in silver can be a wise choice.
Owing to its astounding features like high conductivity of electricity and heat, ductility, malleability and the fact that it is comparatively cheaper, silver has plenty of usage in trade as well as industries.
About Silver Bars and Silver Coins: The Investment Options
Silver, as an investment option, can be availed as silver coins, bars, jewellery, utensils, ornaments etc., though silver bars are the best bet in terms of purity. They tread at the basic price of silver and are available at a lower cost than the other forms of silver like coins or jewellery. You can also avail these as bullion- an investment-oriented form of silver. These bullions may be found in shapes such as bar, round, or triangle, and can be bought depending upon the weight of silver. Considering the storage requirement of the investors, silver bars are designed in different forms. You can avail them at .995 purity and higher.They are available in different shapes, weighing 1, 5, 10 or 100 ounces or Kgs as per the retailer.
Silver as coins is expensive and can be obtained from banks, jewellery shops, or private dealers. Coins are mostly used as gifts during religious activities. In festivals like Diwali, gifting silver coins is considered auspicious. Owing to its quality or purity, banks charge a higher premium for selling coins. Coins are measured in ounces, grams, tolas or other metrics.
Silver or Gold? Debate is On
Both gold and silver are precious metals. But which one should you buy?
In a country like India, where gold is adored and coveted, it is quite difficult to take-over its reputation. Gold is an obvious choice for Indians at any time and more so during the wedding season. Silver, somehow, is not venerated the way gold is, and hence is restricted to the “not-so-well-off” section of the society. Probably this is why the upper-middle class or richer sections of the society are unaware of the trend in silver and its potential returns. To them, investing in a precious metal means buying only gold.
Though it is true that gold has given outstanding returns in the past and is still maintaining the same, silver has taken a lead in the returns earned. Naturally, you are wondering how silver has taken over gold in terms of returns. Here is how: if we compare in terms of our population, 90% would know that in 2010, gold gave a return of 25%; very few know that silver gave a return of 80-85% in the same financial year.
Recent Hike in Silver Price
The hike in silver prices is a fairly recent development. As you already know, one of the biggest causes of rising in silver prices is its massive use in various industries. It is a precious asset and is going to gain more value in the long run. Owing to the returns, its popularity is rising day by day and so is its price.
Talking from the investment point of view, it is a long-term investment option that can give good returns. Precious metals are bought with the purpose storing up assets for future and to fence against financial instability and inflation. Hence silver, as bars and coins, is quite popular with the Indian public, especially the rural population and is rapidly gaining price in the market.
Using precious metals as an investment has been a trend for ages. Silver, though not as popular as gold, has now started a trend amongst investors. This is because of its limited supply and an unprecedented demand from industries all over the globe. Considering the rise in prices, silver investment can be a good option for long-term investors. Hence, a large number of people have started opening up to the idea of a silver-lined future.
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