India has long history in dealing precious metals where people used to buy gold and silver for their social and economic growth. As the time changed, the trend remained the same but emerged with several other options where people got new ways to buy and invest in precious metals and especially in silver. The metal gained much popularity due to its affordability as an investment option. This post will deal with some effective ways of investment in silver in India which will offer you best returns and give you insights about the basic factors which affect its price.
Bullion is a term which refers to buying precious metals in bulk, whether gold or silver. It generally includes silver bars and silver coins. The silver bars which you get through bullion is 99.5% pure. It is traded in commodities market in both bars and coins form. However, people prefer trading in silver bars rather than coins which are costlier than bars. You can easily get these silver bullion either from your bank or you have to purchase it via some stock market agent. Bullions are considered as a safe investment policy as you can keep an eye on the prices and sell your bars when you think, the prices are high enough to gain good returns.
This is the most common way of investment in silver in India where silver is purchased by every segment of people across the nation. People consider jewelries as a hedge against their difficult times and are even much fond of using it in their day to day lives. However, buying jewelries is not preferred by typical and experienced investors as jewelries include designing cost with them which are often very high and yields comparatively less returns when you sell them. Still people of different financial status keep buying and selling silver jewelries depending on its fluctuating prices.
Offered by National Spot Exchange, buying digital silver offers you a great ease to own silver and deal in silver Forex without any physical possession. All you need to do is to create a Demat account and a depository account with any of the members of NSEL. Once you are done with account opening formalities, you can easily buy small chunks of silver and sell them as and when required.
To start trading in silver futures, you need to ask your broker to allow you trading through this option. Generally dealt in MCX and NCDEX, Silver Forex offers good opportunities for an investor to diversify its investment portfolio. Under such scheme, you have to pay a certain portion of the amount for the value of total silver you want to invest in advance and then can sell it at any date, even before your contracts ends, depending on the price hikes.
Milestone Bullion Series 1
To get the most out of silver forex, you can opt for this option which is offered by Milestone Capital. Just like you invest in Mutual funds, you get an opportunity to invest in silver, gold and gold-linked structure. This is a structured investment scheme where you need to start with a minimum sum of Rs. Five lakhs. The amount is diversified as an investment in the following ratio
40% Silver, 40% Gold and 20% in gold linked structure.
The annual management fee is 1.5 % in addition to a one-time fee of 2% if the investment is below ten lakhs. Generally, these are meant for heavy investment purposes, so those who are willing to invest such a hefty amount can surely consider this another option for their investment portfolio.