How To Buy Silver In India? Trading

blog

How To Buy Silver In India?

Investment in precious metals has a long history in India since the inception of civilization. Especially silver, which not only offers great returns on investments but also acts as a hedge against financial crisis. Silver’s popularity is driven by its affordability as an investment option and therefore, a large population invests in silver by purchasing it physically and investing in bonds which is traded in capital market. In this post, we will discuss how to buy silver online and in what different forms one can buy and invest in silver along with its monetary consequences.

You Can Buy Silver In Physical Form

Buying silver in physical form includes jewelries, silver bullion and silver bars.Silver bullions refer to silver, which is around 99.5% pure. This is further melted into bars and coins. Silver bullion will not have any impurities and are called parted bullions while bullions with impurities are called un-parted bullions.Silver coins are perfect as small investments whereas silver bars are meant for huge and long term investments. Price-wise they are more expensive than silver bars as the price of labor of making the coins, imprinting images and letters on them are added to the final price. You can buy these from banks and reputed jewelers.

Buying Silver Futures & Options

This is another silver investment scheme to trade in Silver Forex.You agree on a contract to deposit a particular amount of silver at its current price for a specific time period and can sell your futures contract in when it ends getting the returns on silver price prevailing at that time. Silver options allows you to sell silver at a specific price for a certain time period. If the strike price (at which you bought) falls, you earn a profit and vice versa. However, it is not necessary to look for the expiry of time period, you can sell as and when you want them to.

Suggested- 5 Factors Affecting Gold Prices In India

Digital Silver

This concept has been recently introduced which is traded on National Spot Exchange.An innovation of the National Spot Exchange is digital silver or e-silver that lets investors put in their money in smaller chunks and hold their purchase in a Demat form. To purchase silver from National Spot Exchange, first you have to get its membership from any of its franchises. It is required for any prospective clients to open up their depositary accounts with these members to be able to start the investment process.

Milestone Bullion Series

Recently launched by Milestone Capitals, this is another way to invest in silver same as investing in mutual funds. In Milestone Bullion Series 1, investors get the opportunity to invest in several different metals: silver, gold deposit schemes, and gold-linked structure.

This is a structured product, and the minimum investment required to get into this product is Rs.5 lakhs. This amount is then invested in following proportion:

  • Silver: 40%
  • Gold Deposits 40%
  • Gold linked structures: 20%

Conclusion

There are several ways of buying and investing in silver but most of the investors prefer to deal in exchange traded funds ETFs and digital silver or e-silver as there is minimized risk of storing it physically and getting good returns when sold.