Silver Investing： How to Buy/Invest in Silver online in India 2022？

Thomson Reuters and the Silver Institute, in a study published in 2018 by the World Silver Survey, revealed that in the last fourteen years, India currently stands at 12th on the list of top twenty silver-producing countries. This fact implies that our country's contribution to the silver market has soared to a staggering 16.20Moz since 2016. But the growth hasn't paused there. Due to abundant options for its investment, more and more people are flocking to the silver market to trade in silver.

As one of the most significant contributors of silver in the Asian continent, the fluctuations in the demand, supply, and silver investing pattern in the region significantly influence the silver price in India today and in the international market. If you are confused about how to invest in silver in India and how to buy silver online, keep reading.

SILVER PRICE :

In order to look into the pricing of silver, it is crucial to examine the history of silver mining. Silver mining started approximately 5000 years ago. Around this time, primitive civilizations such as the Babylonians considered silver a commodity. However, the Greeks first adopted it as a currency; from there, the practice spread through the Roman and Asian dynasties, using silver for international trade.

In modern times, the United States was the first country noted to mint silver dollars in the late 18th century. However, the minting of silver dollars in the US lasted for eighty years until Gold was introduced as a standard for currency.

While the gold standards might have reduced the value of silver as a currency, in the current times, it has regained its worth as a valuable commodity, thanks to modern trading systems. Presently, silver enjoys a hybrid role as an industrial metal for its versatile applications and as a store of value.

However, before diving into the market, it is crucial to know how to invest in silver in India and how to buy silver online. Today's silver price in India is driven by a country's economic data, investor sentiment, and industrial activity. The cost of silver soared from ten dollars an ounce to twenty dollars an ounce in 2008 and reached a whopping fifty dollars per ounce in 2011. Currently, it is over thirty dollars an ounce due to factors such as the pandemic and the global economy.

Let us look at the factors that drive silver's prices.

1 - Industrial Demand

Due to its diverse applications in various automotive, healthcare, and electronics industries, its increasing demand also soars the price. In addition, silver is also used in solar panels, and due to the increase in the trend of sustainable energy, silver's demand is expected to heighten in the coming years.

2 - Gold Prices

As a precious metal, its price trends follow that of Gold. However, silver investing is an alternative to Gold due to its affordability for investors who have smaller portfolios but wish to expand them. Thus, traders consider the gold-to-solver ratio when gauging the price of silver.

3 - Global Economic Trends

One of the significant drivers of silver is the sentiments that surround the global economy. When the global economy experiences a surge, investors lose interest in investing silver as a store of value. Contrarily, during periods of economic recession, investors flock to silver trading. In addition to all the factors, in order to correctly speculate the silver price, one must know how to invest in silver in India.

4 - Dollar

The US dollar significantly impacts the pricing trends of all commodities, and silver is no exception. The forex market moves inversely to the direction of the dollar. The dollar rates encourage investors to investing silver; if the dollar is regressing, investors prioritize purchasing silver as a store of value and vice versa.

5 - Investment Demand

Demand for paper instruments and physical bullion significantly drive the silver price today of precious metals like silver in India today. In addition, economic outlook, geopolitics, monetary policies, and the dollar's value in a region impact the investor's interest, driving the pricing trend.

⭐ Silver ETFs

Exchange Trading Funds or ETFs provide investors interested in silver investing with an alternate investment way. The ETFs are contrary to conventional investing silver in the form of stocks and allow traders to invest in several assets. Converse to the other investment methods, ETFs are more convenient due to their increased accessibility. In India, most ETFs work as a safe and secure option for those new to silver trading. In addition, Silvers ETFs offer a broad scope of various companies, which means that the investor can focus on silver miners, purchasing silver, or both.

Unfortunately, Indian exchanges do not list many silver ETFs. However, silver investors can choose from a massive variety of ETFs in other major internal markets.

For instance, users can purchase silver bullion to track the spot value of silver through iShare Silver Trust or track the index of silver mining firms through Global X Silver Miners ETF. First, however, you must understand the market by researching how to invest in silver in India and how to buy silver online.

Pros

·         For Silver traders in India, trading via ETFs provides an easy, quick, and flexible method of buying and         selling silver.

·         It provides increased access to a multitude of silver assets.

·         It offers safe and secure silver investing compared to purchasing individual stocks.

Cons

·         Silver trading through ETFs may incur an additional fee to the silver price in India today, including trading charges, management charges, and other miscellaneous expenses.

·         The buyer does not have any individual ownership (custody) over the silver.

⭐ Silver Stocks

A popular method to approach the silver market is through stocks. The modern uses of silver have made it a sought-after asset across multiple industries, including electronics, solar energy, and of course, investment. In India, traders can learn how to invest in silver by purchasing silver stocks from firms such as Hindustan Inc. and Vedanta Ltd. For online purchasing of silver stocks, traders can consider firms such as Wheaton Precious Metals and First Majestic Silver which offer silver stocks through brokerage platforms. Silver stocks can be more dangerous as an investment mode if you don't know how to invest in silver in India.

Pros

·         Silver trading through silver stocks allows traders to access a multitude of options to choose.

·         It offers the trader control over their investment/commodity.

·         The trader enjoys the liberty to leave the market any time they want.

Cons

·         The value of these stocks is at the mercy of market fluctuations.

·         The silver price in India today may fluctuate for no apparent reason.

⭐ Silver Coins and Bullions

If you are averse to silver investing in stocks, you might consider purchasing silver coins and bullions. When you purchase real silver in silver coins or bars, you reserve the freedom to buy and sell it on your terms.

Bullions are bars of pure silver that are high in quality terms of purity. Investing in silver bullions necessarily means purchasing the metal in terms of weight, regardless of the shape or size of the bullion. The trader has complete control over the asset and enjoys full ownership over the metal and its value (profit). However, it is a long-term investment, as the trader must search for a buyer to sell their asset for its whole matter. Similar to the other modes of silver trading, the prices of real silver are also at the mercy of market trends. Buying bullion is a great way to start for those confused about how to invest in silver in India.

Pros

·        The buyer investor enjoys complete control over the asset and its values.

·         It can sell at a premium rate as compared to the spot market.

Cons

·        The storage of physical silver is inconvenient and a hassle.

·         In India purchasing physical silver would mean paying a premium silver price in India today.

·         It presents an increased risk of fraud, especially when purchased online.

⭐ Silver Futures

Investing in silver futures means purchasing the asset, i.e., silver, at its current market price, but the asset is delivered sometime in the future. It implies that you will not get the same resell value if you intend to sell your silver immediately after it's delivered. Instead, it might get resold at an increased or decreased price, depending on the market rate of silver at that time. Majorly, it is a profitable trade and a preferred method of silver investing in India. It also allows traders to earn a profit when prices fall by immediately selling the asset when a recession in the market prices is expected.

Pros

·     when the conditions are right, traders can yield solid profit from the futures.

·         It allows the trader to trade them daily or hold them as a longer-term investment.

Cons

·      Investment in futures is a gamble, as the prices could rise or fall anytime or not rise at all at a particular moment to specific conditions.

⭐ Silver CFDs

The main goal of silver investing is to yield profit. In India, most retail trader conventionally trade their silver futures via CFDs or Contracts for Difference. It allows the traders to secure their profits when they feel the silver price in India today might plummet. When the value of silver seems to be dropping, traders can purchase a short contract. This short contract let them place the order to sell off their silver at its current price and deliver them in the future. But CFDs are risky; thus, one must know the ins and outs of how to invest in silver in India and how to buy silver online.

Contracts for Difference or CFDs are a form of derivative investment that allows traders to trade their assets at future value. Since they allow the investors to trade via loaned funds, the chances of risk are always high in this type of trade. Therefore, CFDs are advised for experienced traders who have learned the risks they could face and how to recover or dodge them.

In India, one of the best and most profitable modes of investing silver is trading the silver CFDs. They are flexible asset instruments that let the trader speculate on fluctuations of silver price in India today and the direction of the value of silver assets. If you are someone who is looking for a short-term but profitable silver investing mode, CFDs are your best shot. Silver CFDs are traded online; it means they are convenient to trade, as one is not required to search the markets for a buyer or contact agents to put in orders.

To begin trading silver CFDs, first, you need to sign up on a platform or with a CFD provider. Instead of going through a specified application, you can opt for a platform that allows trading silver CFDs and other commodities such as ETFs and stocks. But before getting started with CFDs, make sure you understand how to invest in silver in India, most of which is provided within this guide.

• Once you find the right platform, follow the following steps;

•  Create an account with the platform/broker/agent. ?

·         Select an underlying silver asset that interests you.

·         Adopt/apply a trading strategy to explore potential trading modes.

·         Open your position.

·         Track your order or trade with the help of fundamental and technical analysis.

·         Based on your trading strategy, close your position.

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In India, silver trading is gaining more and more popularity each day. The reason is apparent; it is a lucrative way to earn profits, much like any other investment. Nonetheless, it is a venture laden with risks and complications, thus, one must be open to the possibility of experiencing a loss now and then, regardless of this.

It is an ideal store of value and has been used as an investment mode for centuries due to low silver prices in India today. Before diving into the sensitive but profitable venture of silver investing, it is crucial to be mindful of the pricing, financial instruments for investment like futures and options, investment strategies and how to invest in silver in India.