People must-have bought silver in numerous forms like coins, jewellery, etc. But now, you can directly invest in silver via mutual funds or ETFs or by buying silver bullion. There are other methods you can invest in silver too, but the aforementioned are some of the best ways to invest in this asset class. The silver’s NAV and its price are directly proportional to each other.
As Silver ETFs are linked to the market, the NAV of this asset class depends on the price swings. Any movement in the silver price will affect the NAV of this ETF as well. The best part of investing in Silver ETFs is that they are supervised by the Securities Exchange Board of India. Here, at least 95% of the investments are made into silver and silver-related assets. Fund managers buy them and secure it in vaults or in the form of exchange-traded commodities.
When it comes to physical silver, the value differs frequently, just like gold. But by investing in silver ETFs, there are no hassles about price fluctuations, storage space requirements, etc. Another benefit of investing in silver ETFs is that they are liquid in nature. Investors can buy or sell silver ETF units on any of the stock exchanges.
At times when inflation hits the economy, silver ETFs act as a hedge, securing you from surging prices. People who invest in physical silver have to levy storage charges, but that’s not the case in silver ETFs. Moreover, these funds help in reducing the portfolio risk as well as create a scope for diversification.
How to invest in Silver ETFs?
As fund managers invest a major portion in physical silver and silver-related securities, by buying silver ETFs, you are directly participating in silver markets. Here, the investing process is pretty straightforward just like mutual funds.
- First, figure out the list of silver-related stocks or funds you want to invest in.
- After deep research, open an account with a registered stock broking firm.
- Next, go to the silver stocks and select the one you want to splurge your money into.
- Finally, place a buy order with the desired amount
Silver ETFs are ideal for investors who are looking for tax-saving, good returns, and portfolio diversification. Tracking Silver ETFs is the highlighted benefit among many others, as you’ll know how much you are gaining from your investments.