Why should you invest in silver?

invest: There are various options available to us in which we can make our investment i.e. fixed deposit, insurance products, etc. However, there are numerous people who still prefer to invest in precious metals like silver. Silver remains in huge demand, especially in India. The largest portion of its demand includes demand from the industrial sector. After that, it is highly demanded for investment purposes and then for jewelry.

In India, people love to invest in silver so much that many ways were created to make Investment easy for us. These are common ways people invest in silver that one can invest in silver through commodity markets, buying silver ornaments and silver bars which are available in banks and silver ETFs. Investors can have a glance at ncdex live (national commodity and derivatives exchange) for investing in silver. This platform provides a trading venue where the commodities trading is done in a transparent and regulated way.

Taking into consideration the rising popularity of silver as an investment tool, it is advisable to spend our money on silver. Here are 7 reasons why.

  • Demand is always around 

Silver is a precious metal that always remains in high demand in the jewelry market in India. There is a huge demand for silver in the industrial sector for production purposes. Demand generated by the industrial sector is far more than the demand for silver by other sectors. This clearly indicates that silver is a commodity that people need and is worthy of our investment.

  • Supply vs Demand

Undoubtedly, the popularity of silver is high as developed and developing nations like India and China are the main demanders of silver. The real situation is that the world’s resources of silver are depleting as demands rise and the silver found above the ground becomes less. Therefore, the value of silver may increase as it may be scarce in the future making the long-term investors acquire good financial status.

  • Timing the Markets

Predictions can be made in several ways regarding silver markets. The simplest trick to time the market would be to wait for the wedding season or the festival period. The demand for metals like gold, and silver spikes.

  • No bank account 

You may not believe the fact but still, there is a portion of people in India who don’t have access to banking and taxation. Due to this reason, it becomes difficult for them to make investments in various available instruments. For such people, investing in silver is highly reliable as it needs no or little formalities.

  • Cheaper than gold

In comparison to gold, silver is way cheaper than it. Which makes it easier to acquire. Generally, it is not possible for people to purchase sizeable quantities of gold due to the high price. But on the other hand, silver allows us to make purchases of big quantities due to its inexpensiveness. For example, rupees 84,500 ( price as of 26 April 2024, subject to change) can buy you 1kg of silver but with the same amount you can only buy about 13 grams of gold.

  • Sorting the Storage Problem

The main issue to consider in the traditional method of silver investment through jewelry or bars is where you keep this shiny metal. If you buy some kilos of silver, you have to keep it at home or in a locker at the bank. If you do not like such transactions, there is a possibility to trade e-silver products on the NSEL. They facilitate investment in silver without necessitating the need to physically hold and safeguard the metal.

  • Good option for emergency 

Silver has two different possibilities for deployment in a crisis situation. One would be a personal emergency where you need cash in a hurry and you decide to sell a part of the silver you have. And in a time of crisis even if the currency of the country loses its value, the silver will be the same.

Overall, silver is a good investment option as it provides various options to invest. It is a precious metal which is and will remain in demand. There are chances that you may think about silver as an unpredictable asset but in the long term silver is a favorable option to invest. However, monitoring the silver price today with 5paisa is essential for making appropriate decisions.


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