How to invest in Silver in India?


How to invest in Silver in India; Silver as an investment option

How to invest in Silver in India?

While there are several investment options available, the one investment option which is not in the eyes of many investors is investment in Silver. Silver has provided 30% annualized returns in the last 5 years. I do not know how many of us know the ways on how to invest in silver in India? Today we would discuss on how we can invest in Silver in India.

While there are various ways on how to invest in silver outside India, there are broadly 2 ways on how you can do direct investment in silver in India.

  1. Investment in physical silver
  2. Investment in e-silver

1) Investment in physical silver:

Buying physical silver like buying silver ornaments, silver bars are one of the ways to invest in physical silver. However, when you intend to sell, you would not get the full money due to reduction of wastage. Hence investing in physical silver in my opinion may not a good investment option.

2) Investment in e-silver:


Investment in e-silver in India is becoming prominent these days. E-silver is holding silver in electronic form in demat account without holding in physical form.

How to buy e-silver:

  1. You need to have separate demat account to buy e-silver. You need to contact the depository participants (DP) which are recognized by National Spot Exchange Ltd (NSEL) to invest in e-silver. Refer this link to know who are all part of the DP’s recognized by NSEL (http://www.nationalspotexchange.com/eseries.htm?m=4#)
  2. You can buy e-silver like any other stock or ETF’s. The delivery period is T+2 days. Once the delivery period is over, you would get silver in your demat account.
  3. You can buy minimum of 100 grams of Silver which is called as an unit.
  4. You can buy or sell with NSEL during the trading time 10 am to 11.30 pm.

Features of e-silver

  1. Assured purity of 99.9%
  2. Zero storage costs
  3. You can buy in small denominations of 100 grams
  4. You can convert them into physical delivery. The physical delivery is available in Delhi, Mumbai and Ahmedabad. You can take the delivery in the lots of 500 gms, 1 KG, 5 KG and multiple lots thereon.
  5. Easy simple process of buying and selling. You can buy or sell at any time like any a stock or Gold ETF

Advantage of buying e-silver

  1. No need to worry on the safety as it is in an electronic form
  2. No wastage during selling
  3. No storage costs
  4. E-silver can be made part of your investment portfolio

Conclusion: I have personally not invested in silver. Investing in silver can be a good investment option as it has provided 30 % annualised returns in the last 5 years. While every one is interested in investing in gold, we can look to invest in silver as an another investment option. Though there are several disadvantages of investing in physical silver, investing in e-silver would be best investment option. Why don't you make silver as part of your investment portfolio?

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Suresh
Invest in Silver in India


Article by Suresh

Suresh KP i.e. me have written 500+ articles on this blog. I love doing analysis and identifying the Best investment options.

11 Comments

  1. raj says:

    guys only buy physical siver not paper silver… yo will lose all your money…. if you trust the system….

  2. raj says:

    do you noe understand how dangerous it is to invest in paper silver …after NSEL blowup …? most eseries investors are just getting cash settlement not real silver…when th eprice of metel has gone down…this is what will happen if you buy paper silver

  3. kaushal atodaria says:

    Will the short term capital gain tax be directly deducted in selling e-silver?

  4. mani says:

    Is there any place other than NSEL, where we can buy e silver or silver ETF. NSEL is in a mess now.

  5. People are not aware of  the fact that silver investing is an  investing option in india,hence,they should be given proper knowledge about it.

  6. Sunny says:

    Hi there

    Need help to open account to buy e silver ease

  7. HImanshu says:

    SIr i want to invest in silver but i dont have a demat account,and i want to invest in physicall form,, so which give me the full money when i sale it back coin or baar. which is more profitable ? and from where i can be assure of 100 % purity. 

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