6 reasons to consider Silver as an investment for 2013

Reasons to consider Silver as an investment for 2013; Silver as an investment

6 reasons to consider Silver as an investment for 2013

Gold prices have been rising year on year and providing 22% annualized returns in the last 5 years. Though it was a safe investment option, it has been proved that this was the best investment option as no other investment option has provided such good returns. However when we have analyzed the other investment options, we have seen that we can consider silver as an investment, alternative to gold, as it has provided better returns than gold.

6 reasons to consider Silver as an investment for 2013

We have analyzed further and seen that gold and silver would continue to be good investment option for 2013.

  1. Comparing to gold: No doubt, gold has been the favorite investment for Indians. However, from the investment point of view, investors would look for alternatives to Gold and considering silver as an investment as it has proved and been providing good returns in the last 5 years.
  2. Comparing to fixed income options: Fixed income options like bank fixed deposits, company deposits have been providing good returns. However post tax, the returns has been limited. On the other note investment in Silver is becoming prominent among the options available for investor. Any capital gains arising through investment in silver after a year would attract tax long term capital gains and the returns would still be attractive.
  3. Comparing to mutual funds: Mutual funds have been providing good returns over the long term. However due to Indian SENSEX is hovering around 19K in the last 2 years, investors are looking for alternative investment options to maximize the returns. In such scenario, silver can be considered as an investment option.
  4. Comparing to sector based mutual funds: If you refer my articles about best sector based mutual funds, FMCG and Pharma sector based mutual funds have been providing 25%+ annualized returns over the past few years. In the market scenario where the SENSEX is not seeing any forward or backward direction, getting such good returns through investment in sector based mutual funds is amazing. Silver as an investment can be comparable with the returns we are getting from sector based mutual funds like FMCG and Pharma mutual funds.
  5. Comparing to direct stock market investments: Investment in stock markets has been providing excellent returns over the long term. No doubt, there are best stocks to buy for long term perspective. However for short term up to 5 years, investment in silver has provided good returns.
  6. Comparing to investing in IPO’s: Investment in IPO in 2012 has provided excellent returns of 50% (direct returns). However 2011 was a bad year for IPO. In a market scenario where a year is good for IPO and a year was bad for IPO, we felt it is good to invest in silver.

Conclusion: It is taking time for investors to digest about making silver as an investment option. All along, investors have been thinking about Gold as a best and safe investment option. Thought there might be some risk involved that past performance may or may not repeat in future, an investor can make silver as an investment in his / her investment portfolio to some extent.

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  • Divya

    Dear Mr. Suresh,

    Recently, I had come across your blog and, I can not tell you how much it has helped novice investors like me. For that- Thank You so much. The information you share is really helpful.

    I have a query. I would like to invest in Silver/ Gold in 2015. Is it a good time to start investing in these two? How can i go about it. And, what percentage should we invest in these two in our portfolio. I am looking at long term investment , a minimum of 10 years. Thank You.


    • Good to know that you our blog Divya. Gold and Silver prices have fallen recently. I feel you can enter at this time. I feel you can invest 10% to 20% depending on your future requirement. You can invest in gold ETF’s

  • a kumar

    How about Bullion india silver

  • Rajesh

    HISuresh, Thanks for this. How can NRI buy Silver. Thanks Rajesh . 

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