One metal which is constantly rising in 2024 is Silver. This white metal has reached a new record of Rs.86,300 per kg. Market is very bullish on this metal. Market predicts, Silver to reach 1 lakh per kg to 1.2 lakh per kg in the long term.
Silver has more than doubled in its price since 2017. Silver was Rs.37,825 per kg in 2017, which has steadily reached to Rs.86,300 per kg in 2024. There was a dip in its price in 2022 but it regained its shine in 2023 and since then it has been rising.
Lets Check what has supported in Silver price rise
Firstly, in India, there is increased demand for secure assets. Buyers feel a sense of security in possessing precious metals. Secondly, the escalating Geopolitical tension across the globe is also a contributing factor.
Plus there has been speculative buying which has also contributed in its price rise.
Also Silver has unique industrial properties which has attracted in its price rise. Historically, Silver has shown a positive correlation with Gold and helping in bullish trend in the metal market.
Silver has played dual role of an investment asset and as an industrial commodity can help in time of economic uncertainty.
Future Trend
Silver’s future seems to be very bright. Market maintains a strong positive outlook for the coming times. It has been emphasized the strength in base metals and strong investment demand as factors likely to support silver price.
Investment Options in Silver
First Option is buying physical Silver from bullion in the form of Bars or Coins. These can be purchased from reputable firms such as Banks and certified Jewellers.
Buyers can also explore the option of Paper Silver, which offers greater flexibility and accessibility. This includes investing in digital Silver through NSE, allowing investors to buy and hold Silver in demat form.
Commodity Futures trading on MCX and NCDEX exchanges also provide avenues for trading silver contracts too. Silver Exchange Traded Funds are also an option to consider.
This works like a stock that can be bought in the market.
As Silver price keeps moving Up and Down and to follow the price of silver closely, some ETFs directly hold physical silver in their vaults. When investors buy shares of a silver ETF, they are buying a portion of this stored silver. This helps the investor to benefit from Silver’s price movements without needing to physical buy, store or sell the metal.
Some Silver ETFs, may invest in stocks of companies involved in Silver mining or production, providing indirect exposure to the silver market. Investors can buy and sell shares of silver ETFs on stock exchanges, just like other stocks.
While both physical and paper silver investment cater to different preferences and risk factors, its important to do deep research before making investment decisions.