Winning Bizness Desk
Mumbai. Driven by a strong global trend and continuous buying by stockists and retail traders, silver prices in India have reached an all-time high. On Tuesday, silver surged by ₹633 per kg, crossing the ₹1 lakh mark for the first time and touching a record level of ₹1,00,400 per kg. This sharp increase has sparked fresh interest among investors looking for profitable avenues.
Silver Gains Over ₹14,000 This Year
Since the beginning of the year, silver prices have witnessed a massive jump of ₹14,338 per kg. According to Anuj Gupta, Head of Commodities and Currency at HDFC Securities, silver prices are likely to continue their upward trajectory. Experts predict that by the end of the year, silver could reach ₹1.08 lakh per kg, making it a lucrative investment opportunity for traders and investors alike.Silver ETFs: A Smart Investment Option
With silver prices on the rise, investors looking to benefit from this rally can consider Silver Exchange Traded Funds (ETFs). Similar to investing in shares, Silver ETFs allow investors to buy and sell silver units on the stock exchange. Over the past year, Silver ETFs have provided returns of up to 34%, making them a viable alternative to physical silver investments.Understanding Silver ETFs
Silver ETFs function like mutual funds and are traded on stock exchanges like NSE and BSE. The price of Silver ETF units is benchmarked to the spot price of silver, enabling investors to buy silver at market-driven rates. This investment mode provides a hassle-free and secure way to invest in silver without the concerns of physical storage.Benefits of Investing in Silver ETFs
One of the major advantages of Silver ETFs is the ability to invest in small amounts. Investors can start with as little as ₹100, making it accessible to a wide range of market participants. Additionally, since Silver ETFs are held in a demat account, investors do not have to worry about security or storage costs, unlike physical silver. Moreover, Silver ETFs offer high liquidity, allowing investors to buy or sell their holdings at any time. These ETFs also help diversify investment portfolios, reducing overall risk by including precious metals.How to Invest in Silver ETFs?
To invest in Silver ETFs, individuals need a demat account. Investors can purchase Silver ETF units available on NSE or BSE, and the equivalent amount will be deducted from their linked bank accounts. Several trading platforms such as Groww, Upstox, and Paytm offer free demat account openings, making it easier for retail investors to enter the market. Once the account is set up, investors can choose from various Silver ETFs based on their preferences.Journey of silver price surge
January 2024: Silver prices at ₹86,000 per kg
March 2024: Silver crosses ₹93,000 per kg
April 2024: Prices rise to ₹96,500 per kg
May 2024: Silver breaches the ₹1 lakh mark, reaching ₹1,00,400 per kg
Year-End Prediction: Silver could rise to ₹1.08 lakh per kg by December
