Should an Investor buy Silver or Gold? – Silver a good investment option

 

Should an Investor buy Silver or Gold?  – Silver a good investment option

It is very important for an investor to first understand the economy and the financial systems prevalent in the market before he decides what to invest in any financial instruments or commodities.  Investment demand for Silver for industrial use and jeweler making is rising in India and China.  Silver prices have more than doubled in the last few months. China and India are the largest silver marketplaces globally. While unprecedented constructions and setting up of new factories are driving up the industrial demand for silver, rising Gold prices is forcing people to opt for silver jewellery in place of gold jewellery.   According to a research concluded earlier this year, precious metals were the best performing assets for the recent times.  Silver performed much better than other precious metals in the market.  Along with being deemed a safe investment, the relatively low supply of the metal as compared to the high demand has also contributed to the steady increase in price.  Judging by the present market scenario, investing in precious metals will be a very wise decision. Currently it seems like silver is as good or even a better bet than gold for investment.  Industrial demand for silver is surging these days thanks to the economic boom in China and India. Silver prices have soared in the last one year mainly due to the high demand for the precious metal from these two countries. In terms of demand, although silver has made progress in the applications of automotive exhaust catalyst handling, conductive silver ink market, photovoltaic cells, solar energy, radio frequency identification and medical antibiosis, such electrical & electronics fields as silvers used in the electrical & electronics industry, silver-base alloys and silvers used in solders are still the uppermost silver consumption fields.

In the previous paragraph, I tried to explain the details of investment in silver and how it is gaining the popularity when compared to gold investment. As we all know, gold is considered as the good commodity investment option and the prices keep rising to the new heights day by day. Only very few people have the knowledge of silver as a good commodity to invest.  In the recent days, silver's prices are skyrocketing and touching the new heights day by day like gold. It is predicted that the price will go up as the demand for the silver is more and supply is less

How easily you can buy silver for investment purpose.

The first option is you can buy physical sliver and hold as an investment, but it is not recommend.  Keeping bulk quintiles of metal is cumbersome and difficult to manage; also you need to store this in a safe place, moreover the quantity you need to store is more when compared to gold.   Another easy option to invest in silver  is like investment in  gold or equities.  The investors can buy silver like equities from National Sport Exchange Ltd (NSEL) and hold for long time and can sell at any time as they wish.   This investment option allow investors, especially value investors to wait to get silver in right price, buy and hold for ever or sell in right time or even get the silver directly deliver to them in physical form at later date.

The first requirement of investing through NSEL is, you are required to  open an NSEL trading account with any brokerage firm in India  like the one for equity trading. Once opened this account, you can buy or sell this commodity whenever you want to so do.   Whatever sliver you bought through NSEL, the quantity of the silver bought will be credited in your DEMAT account. In case the investor wanted he can request the NSEL to deliver the silver in physical form like other commodities, there is no time frame to sell your investments when purchasing from NSEL and credited to your DMAT. You can hold it in your DMAT account, as long as you want. Investors also have option to add nominees for their investments.

Visit to the nearest stock broker and get more details related to account opening and other trading details. 

Finally, please keep it in your mind that, the factors governing the decision on whether to invest in gold or silver is the prices and market conditions. Though the variation in the price of gold or silver is not as unpredictable as that of shares and equities, there still is a noticeable difference on a daily basis. However, when you are investing a large sum of money then this small difference can make a lot of difference. Hence, one should study the market carefully and invest when the price is relatively low or take advice from an expert financial/investment planner.