Silver Prices Hit Record High of Rs.1 Lakh Per Kg, Invest in Silver ETF and earn high interest, Know How
Gold and silver prices continue to rise, setting new records daily due to strong buying by stockists and retailers, driven by global market trends. On Tuesday, silver became costlier by ₹633 per kg, surpassing the ₹1 lakh mark for the first time and reaching an all-time high of ₹1,00,400 per kg.
Silver Prices Have Risen ₹14,338 This Year
Since the beginning of the year, silver prices have surged by ₹14,338 per kg. According to Anuj Gupta, Head of Commodity and Currency at HDFC Securities, silver prices may increase further. By the end of the year, silver could reach ₹1,08,000 per kg, he predicted.
Silver ETF: A Smart Investment Option
With silver prices on the rise, many investors are considering Silver Exchange-Traded Funds (ETFs) as a suitable investment option. Silver ETFs allow investors to invest in silver in the same way as stocks. Over the past year, silver ETFs have provided returns of up to 34%.
What is a Silver ETF?
A Silver ETF is an exchange-traded fund that enables investors to buy silver in the form of shares, which are traded on stock exchanges. Since the price of silver ETFs is based on the actual market price of silver, investors can purchase them at a rate close to the spot price of silver.
Benefits of Investing in Silver ETFs
- Invest in Small Quantities
- Silver ETFs allow investment in small units. Investors can even opt for a Systematic Investment Plan (SIP) to buy silver in installments.
- The price of one unit of a silver ETF is currently less than ₹100, making it an affordable investment option.
- Safety and Security
- Unlike physical silver, which carries the risk of theft and storage costs, silver ETFs are stored in electronic form in a demat account.
- Investors only need to pay an annual demat charge without worrying about security.
- Easy to Buy and Sell
- Silver ETFs can be traded instantly on stock exchanges like NSE and BSE, providing liquidity whenever needed.
- Reduces Portfolio Risk
- Investing in silver ETFs helps diversify the portfolio and reduce investment risks, especially when combined with other low-risk assets like gold.
How to Invest in Silver ETFs?
To invest in silver ETFs, an investor needs a demat account. The steps are as follows:
- Open a demat account through platforms like Groww, Upstox, or Paytm Money (many offer free account opening).
- Select a silver ETF listed on NSE or BSE.
- Purchase silver ETF units, and the equivalent amount will be deducted from the linked bank account.
With silver prices expected to rise further, investing in silver ETFs can be a convenient and profitable option for investors looking for long-term growth and stability.
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