You’re probably here because you’ve been wondering “Should I buy silver for the long-term investment?” or “Is silver worth adding to my portfolio?
Deciding to buy silver to hold in your investment portfolio is likely one of the smartest decisions you can make for your future.
We truly believe silver should always have a spot in your investment plan.
Not only is it in high demand as an industrial metal, but it also plays a key role as a hedge during uncertain times and as a safe haven asset.
The factors driving silver’s price increases reflect deeper, ongoing issues that are likely to sustain its value and importance.
But don’t rush into it just yet. Take a moment to read through everything we have for you because investing is a serious decision that requires careful thought.
Let’s walk you through everything you need to know before making your silver investment.
Silver is a smart option for aggressive investors wanting to diversify beyond stocks. During market instability, silver often performs better than equities and paper investments.
During times of uncertainty, silver tends to perform better as people move their investments into precious metals.
Although silver is known for its volatility, it remains a solid option for long-term growth. Investors may face challenges selling silver quickly at their desired price. However, it is generally easier to liquidate silver than treasury bonds, offering a better return.
Since the start of 2024, silver has risen by 33.65%, reaching Rs 1 lakh per kg.
Analysts recommend allocating 3-5% of your portfolio to silver, especially buying on dips over the next 1-3 months.
Silver is more liquid and secure than other investments like government bonds, making it an attractive option for aggressive investors.
This can help secure your investment while taking advantage of silver’s liquidity and potential returns.
Silver is widely used in various industries. It has applications in electronics, solar panels, medical devices, and more. The constant demand from these sectors creates a strong foundation for its value. This industrial demand helps maintain silver’s market price.
Silver has been known to protect against inflation. When inflation rises, the value of currencies drops. However, silver tends to hold or increase in value, making it a good choice during times of inflation. Investors use silver to maintain the value of their investments when the purchasing power of money decreases.
During economic uncertainty or market instability, silver is often seen as a safe-haven asset. Investors turn to silver when they want to protect their wealth from economic or political risks. Silver holds its value better than many other assets during times of crisis, making it a reliable investment.
Silver can help diversify an investment portfolio. Diversification reduces risk because different types of investments perform well at different times. By adding silver to a portfolio, investors can spread out their risk. This can lead to more balanced returns over time.
Silver is more affordable than gold or other precious metals. It offers a lower entry cost for investors. This makes it easier for people to start investing in silver compared to higher-priced investments.
Unlike stocks or bonds, silver is a tangible asset. This means it has physical value. Investors can hold, store, and transport silver. This provides peace of mind for people who prefer to own physical assets rather than digital or paper assets.
Silver is highly liquid, meaning it can easily be bought or sold in the market. It has a large number of buyers and sellers, making it easy to convert silver into cash. This liquidity makes it a flexible investment option that can be quickly accessed when needed.
Silver has shown potential for price growth, especially during times of high demand or economic change. As more industries use silver and the global economy grows, the price of silver could rise. This potential for upward price movement can lead to substantial profits for investors over time.
Physical silver means buying silver in forms like bullion, jewelry, or coins. It is important to check if the silver is hallmarked to ensure its purity. In India, many people buy silver bullion bars or coins from jewelers, banks, or exchanges. The minimum investment can be as small as 1 gram, and there is no maximum limit.
Digital silver is a modern way to buy 999.0 pure silver and store it in government-backed vaults. This method avoids storage issues like security costs or the risk of theft. You can buy digital silver easily from trusted digital platforms, anytime and anywhere, with just a few clicks.
Silver bullion refers to pure silver bars, usually with 99.9% purity, traded on commodity exchanges. The minimum amount to invest is typically 1 gram, and the maximum depends on your budget and goals. When buying silver bullion, you pay a small premium over the spot price. The profits are taxed at the capital gains rate. Benefits include portfolio diversification, inflation protection, and high liquidity. It is important to find reliable dealers and store your silver properly while staying updated on market news.
Silver SIP allows you to invest in silver regularly in small fixed amounts, like daily or monthly. This method lets you build a silver portfolio without needing to buy physical silver. With a silver SIP, you don’t have to worry about storage or theft. You can set up your Silver SIP starting from ₹500, and you can choose to invest daily, weekly, or monthly. The platform buys silver units for you based on your set amount. This is ideal for people who can’t afford to buy large amounts of silver at once. It’s an easy way to build a silver investment habit and protect against inflation. Silver SIPs are a good choice for college students, young professionals, or anyone starting to save.
Silver coins are available in weights from 1 gram to 50 grams and can be bought from banks, jewelers, and online sellers. Always buy from trusted sources to ensure purity. Coin prices change based on market rates. Silver coins are easy to sell and offer liquidity. They also have low investment amounts compared to gold. Though returns from coins are lower than stocks, they are a stable long-term investment option.
This covers key silver investment options, each suited to different needs and budgets. Whether you prefer physical silver or a more digital approach, there are options to suit every investor.
When you sell silver, it is treated as a capital gain. If you hold silver for more than 36 months and then sell it, the profit will be considered a long-term capital gain.
You can benefit from indexation with long-term capital gains. This means you can adjust the purchase price for inflation, which reduces your taxable profit.
Long-term capital gains are taxed at 15%. If you sell silver within 36 months of buying it, the profit will be treated as a short-term capital gain. Short-term capital gains are taxed at 10%.
As we’ve discussed, silver is a smart choice for long-term investors who want to look beyond just stocks.
It performs well, especially when the market is unstable. When stocks drop, people often move their money into silver. This helps protect your investment and take advantage of silver’s value and liquidity.
Silver’s liquidity and potential returns make it a great choice to protect and grow your investment.
If you’re thinking about silver, consider making GGC your partner. GGC is a leading domestic manufacturer of silver bars and coins with a fineness of 999.0.
Check out our selection and find the best silver options at competitive prices. You can easily view the latest prices on our website and make your purchase online.
Start investing in silver with GGC today and secure your future with our trusted silver products.
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