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Does your investment have a silver lining?

Traditionally, silver has been one of the best forms of household investment. And more than an investment tool, silver enjoys being an auspicious gift item and has carried

By: Deepak Yohannan | 
Read Time: 3 minutes, 13 seconds | 
Last Updated: 03-01-2022
Does your investment have a silver lining?

Traditionally, silver has been one of the best forms of household investment. And more than an investment tool, silver enjoys being an auspicious gift item and has carried on the culture for quite long. Be it on occasion of birth of a child, getting a new job, buying a new car/home, birthdays, wedding anniversaries or Dhanteras, gifting silver never goes out of fashion.


As far as Investment is concerned, the whole world is chasing Gold and if you are wondering which investment will give you the highest return – Gold, Real Estate or something else then here is a food for thought - Silver has outperformed Gold in 2010, 2011 and matches the appreciation of Gold in 2012. This quick comparison of Gold and Silver will show how silver has done well in the last three years in comparison to Gold –



Silver has been regarded as a form of money for more than 4,000 years. Investment in Silver can be very lucrative and the cost is cheaper than gold. The price of silver had gone up to as high as Rs 65,475/kg in September, 2012. Thus, you can easily invest in Silver without too much hassle and take full advantage of the price rise over the years. During the "great commodity race," the main competitor for the silver investment dollar is gold.


Latest ways of Investing in Silver

Physical Silver is the traditional method of purchasing silver. However, there is a practical concern in buying physical silver and why most people do not prefer the same. The issues with silver in a physical state are:

1. It can be stolen so one has to keep it safely

2. You have to pay making charges (even if you buy a coin)

3. Cannot be traded freely and conveniently. There are not many places where one can easily offload the physical silver.

4. Many people in India get skeptical when it comes to selling physical silver and gold. It is considered as an asset for life which has to be passed on to heirs and not sold.


Hence, if you want to invest in silver then it makes most sense to avail the non-physical forms of silver. There three easy ways to invest in silver are:


1. e-Silver: National Spot Exchange Limited (NSEL) has started a new way to trade in e-Gold and e-Silver by simple purchasing the same in demat form. In this form, retail investors can buy a minimum of 1 unit of gold equivalent to 1 gram of gold and 1 unit of silver equivalent to 100 grams of silver in demat form at real-time Indian prices, which tracks the international gold and silver prices. You can open your account with one of their Depository Participants and purchase e-silver in demat form.


2. Commodity Futures: You can trade in Commodity Futures for Silver in exchanges like MCX and NCDEX by potentially take a position in silver by trading on its futures and trading on the same lines. Derivatives, such as silver futures and options, currently trade on various exchanges around the world.


3. Silver Exchange Traded Funds: Since there are no Silver ETFs in India, you can purchase the same from International markets. You can ask your broker to enable overseas trading for you after which you can buy and sell selected securities that trade in the US from your trading account.


So now you know that there are other ways in which you can invest in silver. Silver is an attractive safe haven for investors due to several reasons. Silver is in significant demand across sectors such as jewelry, medical, coinage, photography & electronics, mirrors & optics and other industrial applications. Companies incorporate silver based products in clothing, refrigerators, mobile phones, computers, washing machines, vacuum cleaners, keyboards and much more.


We hope that your investment portfolio also has a silver lining in it!

Deepak Yohannan
Deepak Yohannan is the CEO of MyInsuranceClub. He enjoys writing on Personal Finance and contributes regularly on sites like Reuters & Moneycontrol. He is a strong proponent of online insurance and is often found pointlessly babbling about it!

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