Investing in silver has been a long-standing practice in India. The demand for precious metals, including white metal, has increased as they are reliable options to tide over economic turbulence.
It comes in many forms, from silver bullion to jewellery and silverware. Investing in silver, bullion or otherwise is one of the most popular options, and fintech advancements have only made the metal more accessible.
Today, you can buy silver bullion or other forms online per your investment goal. Read on to learn what silver bullion is, why to invest in it, and more.
Silver bullion refers to the metal in a physical form with high purity. Bullions can be in the form of bars, ingots, or coins and are readily available. However, it gets treated differently than other forms of silver.
Silver bullion has a maximum purity of 999; the rest is alloy or other metal to hold its shape. You can also buy silver bullion with 958 and 925 purities, also known as Britannia and sterling silver.
You can get a lower price with the lower quality rated silver bullion. Silver bars and coins can have a minimum of 900 purity, i.e., 90% silver and 10% alloy or other metal mixed in the caste to form the silver bullion.
Silver is a great investment option in India and globally for many reasons. Since silver is a tangible asset, it has many applications in different industries. In India, it is used in the electronic industry, jewellery making, food industry, etc. With such high demand, silver has great potential.
Precious metals provide a hedge against inflation and other economic turbulences. As such, investing in silver bullion can help keep your wealth secure. Another benefit of investing in it is that it is cheaper than its yellow cousin, making it more accessible.
Buying silver bullion can give you a higher return since the prices show an upward trend. Moreover, the historical trend of its price shows that it has increased in the long run and is expected to continue, presenting an opportunity for growth.
To buy silver bullion, you can choose from several routes, each having its own advantages and charges. The rate of silver in India depends on its purity and weight. You can buy silver bullion from the bank to get the highest purity silver in India.
Banks decide the silver price based on the purity and your city's current silver rate. You can also buy silver bullion from jewellers in the form of bars and coins. Jewellers sell several silver products; any bullion with a hallmark and BIS Mark ensures its purity rating.
Buying silver online has its pros and cons, and you can easily buy silver bullion online from dealers at reasonable prices. Online silver purchases may be time-saving and convenient, but there could be a risk of fraud.
Buying silver bullion requires thorough planning and research as it is a large investment. There are a number of factors you should consider before you buy silver bullion.
Here are some key points to remember:
Spot silver is the rate of silver at the current time, and it changes based on many factors. Keeping track of the spot price can keep you updated about the value of your silver bullion.
The purity of silver is a key factor in deciding its price. Therefore, you must check it before you buy silver bullion. Note that as purity goes down, the cost will as well, because the amount of silver is less and vice-versa.
Buying silver from a trusted source ensures that you get the actual purity of silver for your silver bullion. This helps you get the true value for your money while purchasing and selling. Getting certified and hallmarked silver bullion will ensure authenticity while eliminating the loss of having purity less than paid for.
Now that you know about silver bullion and how you buy it, be sure to invest as per your requirements. Consider the factors that affect the silver price to time your entry and exit from the market and maximise your gains.
Investing in silver has many monetary advantages, whether silver bullion, bond, or physical. With silver investments, you can diversify your portfolio and get higher returns in the long term.
Precious metals also have high liquidity, which you can leverage during a financial crunch or an emergency.
Silver bullion is a great investment as the precious metal retains its purchasing power against currency devaluation. Buying silver bullion also gives you other benefits, such as higher liquidity and better returns at a lower cost than other precious metals, like gold and platinum.
Initially, silver bullions get evaluated on the ‘spot price’, the value of 1 ounce of silver in the current market. When it is sold, mining, labour costs, storage fee, refining charges, and marketing costs are added to the final price.
These chargers elevate the price of silver bullion. Additionally, there are other factors, like supply and demand, economic situation, and inflation, that affect its price.
The best way to buy silver bullion is by visiting a trusted institution (bank, company, or jeweller) online or offline. Remember to check the authenticity of your purchase to ensure that you don’t end up with a counterfeit item.
Silver coins are a form of silver bullion. However, there are numismatic coins, which are collectable and rare. The best option between bullion and numismatic coins depends on your purpose of investment.
Bullion is essentially money, good for investors, and numismatic coins are collectable, ideal for a collector.