Silver - Poor Man’s Gold
Buying precious metals like gold and silver is quite popular in India, especially during wedding and festival seasons. While gold is considered an expensive metal and is sometimes almost out of reach for customers who are not very well-off, silver is one metal which is appreciated by almost all financial strata of the Indian society.
Silverware and silver jewellery find an extremely important place in the Indian culture. Due to its lower price as compared to gold, silver in India is known as the poor man’s gold. So people from the economically weaker section of the society deal a lot with silver for wedding purposes and for other festivities.
Why Buy Silver?
Though a lot of people are skeptical in investing money to buy precious metals like silver and gold, diversifying your financial portfolio is an intelligent investment strategy. Silver, too, because of its consistently appreciating nature, is a good investment tool apart from being a necessity during weddings and festivals.
- Appreciation in value for silver is a lot more rewarding than that for gold since the input cash required is far greater than that required to purchase silver.
- Historically, silver has seen more appreciation in value over a period of time as compared to that for the yellow metal, gold.
- Silver appeals a lot to small investors and is traded more than gold or platinum and as such becomes a handy investment tool for time when you want to sell it off to gain liquidity.
- Silver can be bought in varied quantities ranging from a few ounces to a few pounds and can thus prove to be a good investment option with respect to liquidity of cash that a customer may have.
Also, Check - Silver Price Trend in India
Demand for Silver Across the Globe
Though India is one of the largest exporters of silver in the world, importers of silver include a range of countries from the American as well as the European and Australian continent. Currently, China poses a huge demand of silver along with countries like USA. Next in line and countries in the Middle East and newer markets include those in Africa and Europe.
Silver is seeing a new make-over, as any designers and artists have taken up the task of revamping traditional silver and creating trendy art pieces as well as jewellery pieces. Indians in particular are quite used to buying silver in the form of anklets, earrings, necklaces etc. Newer designs in the jewellery industry has also increased the current demand for silver.
Also, as and when gold becomes more expensive, the demand for silver tends to up. This is because, buyers need a replacement for their metal needs and as such the demand for silver is linked closely with that of gold rate. However, despite all the points mentioned above, silver in India, still comes only after gold. It is only when people are not able to buy gold, they start looking for silver as an investment or a gifting option. Nonetheless, the current appreciation in the price of silver indicates that this so-called poor man’s gold is slowly but steadily catching up with the costlier metal.
Read More on Silver
Karishma VP has over a decade of experience in content writing which includes over five years specializing in the field of personal finance. Her career in BankBazaar has given her the opportunity to research and write on a wide variety of financial products ranging from credit cards and home loans to insurance policies and government schemes. She believes that an understanding of personal finance is an important step to leading an independent, empowered life. This has led to her being passionate about learning more about the BFSI sector and writing about it as clearly, concisely, and accurately as possible to make it accessible to a larger audience through BankBazaar. |
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