How To Invest In Silver? 12 Points To Keep In Mind Before Buying Silver!

Learn to invest smartly and make the most of your money when investing in silver.

<div class="paragraphs"><p>Photo by Scottsdale Mint on Unsplash</p></div>
Photo by Scottsdale Mint on Unsplash

Silver has always been a great precious metal to invest your money in. It’s perfect for new investors with limited capital as well as for veterans who simply want to invest in silver. Whatever your reason may be, investing in silver is definitely a wise decision.

According to the World Silver Survey 2022 published by The Silver Institute, India is currently the world’s third-largest silver physical investment market after the US and Germany. Last year, i.e. in 2021, digital silver and silver ETFs were also launched in India making it an apt time to invest in silver.

Now, you might be really excited to buy silver and start investing in it, but hold your horses before you make any mistakes. Silver prices are also dynamic in nature, similar to gold prices. It fluctuates depending on the international market.

Moreover, there are some other factors as well that you need to consider before investing in silver. Let’s take a look at some points you need to keep in mind before investing in silver:

  1. Track Market Price - Always check the market price before investing in silver. If you start tracking silver prices regularly, you’ll know when the price falls and then you can invest in silver for a lesser price.

  2. Use Multiple Sources For Tracking - Silver prices fluctuate daily, and some sites or apps might have not updated them when you check them. Hence, always track silver rates from multiple sources.

  3. Avoid Buying Jewellery For Investment - Jewelleries come along with huge making charges. So, if an investment is your goal, avoid buying jewellery to save on those charges and use that money for investing in the metal.

  4. Invest In Coins Or Bars - If you intend to buy your silver locally, the best way to invest in it is by buying silver coins or bars. You can buy silver coins for smaller investments and silver bars in case you want to invest more. This way you’ll also save on the making charges.

  5. Store Physical Silver Securely - Physical silver takes up space. Moreover, if kept at your house, it’s always at risk of being stolen. The best way to safeguard your silver is by keeping them in bank lockers. Apply for one now, and hopefully, your bank will assign one to you soon.

  6. Save Space By Investing In Digital Silver Or Silver ETFs - In 2021, India saw a new way of investing in silver, i.e. via digital silver or silver ETFs. So, if you won’t want the hassle of having to store physical silver, simply invest in digital silver or silver ETFs.

  7. Buy From Trusted Sellers - Whether you buy locally from a jewellery shop, or invest in silver online, always make it a point to buy from trusted sellers only. This way you can ensure that you get your money’s worth and the purity of your silver isn’t compromised.

  8. Check For Purity - While gold has Karats to determine its purity, the purity of silver depends on its finesse. This finesse could be 999, 925, 900, etc and would ideally be imprinted on your silver bar or coin. Silver having a fineness of 999 is considered pure silver, whereas others will have a metal or an alloy mixed in.

  9. Never Invest Everything In One Go - You should always buy your silver in batches. Silver prices usually go up and down every other day. You may invest all your money in silver one day, only to see the prices down further the next. So never invest everything in one go.

  10. Maintain Cash Reserves For Future - Silver prices may go down any day, so it’s imperative that you maintain a cash reserve for the future. This could either come in handy during emergencies or simply invest when the prices are low again.

  11. Always Sell Smart - Smartness lies in knowing when to sell your silver and when to hold on to it. When you see the prices going up, do not hesitate to sell your investments and earn some well-deserved profit.

  12. Take Advice From A Financial Expert - If you still need some guidance, talk to a financial expert and take their advice on investing in silver.