Investing in silver and gold as commodities presents a straightforward and potentially lucrative opportunity. Learning the simple methods of purchasing these metals as physical assets can empower anyone to build tangible wealth. Given the notably high value of gold and silver, they stand out as excellent investment options.
The advantages of investing in gold and silver surpass those of traditional currencies. Amid various opinions, gold investment consistently emerges as the superior choice due to the numerous benefits associated with these precious metals.
Silver is esteemed as a precious metal not only by investors but also due to its extensive applications across various industries such as mobile handsets, glass production, standard lead-acid batteries, solar panels, electric conductors, and computers. Remarkably, no alternative metal has succeeded in replacing silver in these applications. Furthermore, silver plays a crucial role in numerous life-saving medicines.
Silver is often referred to as the “poor man’s gold” due to its lower market value compared to gold. While gold is traded at approximately 2040 dollars per ounce, silver trades at just 25 dollars per ounce.
Gold is primarily purchased by investors or nations for accumulation purposes, whereas silver boasts numerous industrial applications beyond its role as an investment commodity. In terms of investment, comparing gold and silver, silver is widely regarded as a significantly more useful metal than gold. Most of the mined gold is stored in the world’s central banks or the personal safes of individuals.
The exorbitant pricing of gold predominantly stems from a substantial disparity between its demand and supply, further amplified by its global trend and renowned brand value. In contrast, when comparing gold and silver as investment options, silver consistently maintains a significantly more economical price point. This affordability makes silver a feasible investment choice even for smaller-scale or individual investors.
Shifting our focus to the returns generated by these commodities, silver has yielded approximately a 9% return in the last month, whereas gold has generated a 2.9% return during the same period. Let’s move on to the technical chart, where silver appears interesting on the monthly time frame.
Chart (Monthly time frame)
Silver Future (Indian Market)
Investing in silver can be a prudent choice for several reasons:
- Affordability: Silver’s lower price compared to gold makes it accessible to a broader range of investors who seek to purchase ornaments or engage in bullion investments.
- Investment Preference: When deciding between silver coins or bars, silver bars are generally favored for investment purposes. They often have lower premiums and are more convenient to store compared to coins.
- Investment Options in India: In India, there are various ways to invest in silver, such as purchasing silver jewelry, trading in e-silver through platforms like the National Spot Exchange (NSE), or acquiring silver ETFs through trading accounts.
- Safety as an Investment: Market experts and economists often regard silver as a safe investment due to its relatively lower value and perceived stability. Investments in silver are seen as less likely to tie up funds significantly or face substantial depreciation.
However, it’s essential to note that all investments carry inherent risks, including fluctuations in market prices. While silver is considered relatively stable, its value can still be subject to market volatility. Investors should conduct thorough research, consider their financial goals, and risk tolerance, and consult with financial advisors before making any investment decisions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.