There are lots of options for investments in the markets, ranging from insurance products to fixed deposits and more but there are a lot of people who prefer to invest in precious metals like silver. Of the total demand for silver in India, the largest portion is from the industrial sector, then comes investment and then jewellery. Investing in silver is so popular in India that there are a multitude of instruments to help people invest in them. These instruments can range from actually investing in it through the commodities markets, buy silver jewellery, silver bars that can be bought from banks and even silver ETFs. Seeing as how popular it is the question really becomes, should you be investing in sliver and if yes then why?
7 Good Reasons to Invest in Silver
The answer to the question of investing in silver is yes. You should be investing in silver and here are 7 reasons that will show you just why it can be a good idea for an investment.
Demand is Always Around
Silver being a precious metal is always in demand from the jewellery markets, especially in India. The demand is also being generated by industrial sectors that require silver for production and this demand far outweighs the demand by any other sector. This means that silver is something people need and what is in demand is worth investing in.
Supply vs Demand
While there is a large and ever growing demand for silver being led by nations like India and China, the fact is that the availability of silver is dropping as demands rise and silver found above ground reduces. This means that at some time in the future it will become tough to come by silver and the price may be driven up the limited supply thus putting long term investors in a very good financial position.
Timing the Markets
There are way in which the silver markets can be predicted. Some of the most basic ways to time the market would be to wait for the wedding season or a festival to come around. The demand for both silver and gold goes up.
No Bank Accounts
You might find it hard to believe but a portion of India’s population is not in the system when it comes to banking and taxation. This makes it difficult for them invest in a lot of instruments available and for them one of the places to invest in is buying and selling silver because it can be bought and sold without too much of a hassle.
Cheaper than Gold
Silver is easier to acquire since it is cheaper than gold. Not everyone can hope in be able to buy sizable quantities of gold but when it comes to silver, it can be bought in bigger quantities because it’s cheaper. For example Rs. 36,215 (price as of 25 September 2015. Subject to change) could buy you 1 kg of silver but the same amount will only get you only a bit over 10 grams of gold.
Sorting the Storage Problem
When you invest in silver in the traditional way, in the form of bars or jewellery, the biggest question you face is about where you can store it. Let’s face it, if you have just bought a few kilos of silver, you can’t be keeping it at home and getting a good night’s rest. If such situations are not appreciated by you there are also e-silver products that can be traded on the NSEL. They allow people to invest in silver without having to worry about storing the metal.
Go to Option in an Emergency
Silver can help out in an emergency in two ways. The first would be the case of the personal emergency where you need money in a hurry and you decide to sell part of the silver you have and the other is the fact that in case of an emergency on a national scale, even if the currency loses value, silver wont.
Over all silver can be a good investment to make since it does offer options on investing and is a precious metal that is and will remain in demand. There may be times when the markets may make you think that they rather unpredictable but if you go with a long term investment in mind, you may end up liking the investment.
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