Silver Price Historical Trend in India

This chart contains the average annual price for silver from 1981 - present.

Also, Check - Gold Price Trend in India

How Can I Invest in Silver in India?

There are multiple ways to invest in silver in India. They are as follows:

Silver articles, cutlery or jewellery - It is a quite common practice in India to invest in silver dinner set, jewellery or show pieces. Doing this allows individuals to make an investment and at the same time use things on a daily basis.

Silver Coins - A lot of banks and financial institutions sell silver coins of varying weight. The weight of these coins varies from 1 gram to 10 grams and upwards. These coins can be easily exchanged for liquidity as and when required.

Silver Bars - A lot of individuals who are looking for bulk investment opt for silver bars and coins . These bars can be easily exchanged for cash as and when required.

Commodity Futures Exchange - The investors can also opt for silver investment in the Commodity Futures Exchange. These investments are usually made by professional investors who are keeping an eye on the silver trends and can predict market.

What Should I Consider While Making an Investment in Silver?

There are various points which need to be taken into account when making a silver investment.

These factors are as follows:

1. Silver rates on a daily basis - The price of silver changes every day based on the international market price of silver. That is why it is important to keep track of silver prices if you wish to get the best rates. An easy way to do so is by checking silver metal prices every day.
2. Amount of silver you wish to invest in - The amount of silver you wish to buy should also be considered when purchasing the metal.
3. Making charges - If you are looking forward to making an investment in silver jewellery or cutlery, do ask the jewellery about the making charges applied.
4. Mode of transaction - Here, the transaction mode indicates the way silver investment is made i.e. through authorized dealers and registers and banks or online e-commerce websites. Investors need to ensure that they buy genuine products with verified purity. This would help them to get the best resale value of silver.
5. Certification - It is important to get proper certification while buying silver. Doing so assures the buyer of silver purity and helps them get a good resale value.

Factors That Affect Silver prices in India

The silver prices in India are affected by multiple factors.

Some of them are listed below:

1. The demand for silver plays a crucial role in determining prices of the metal. Precious metal like gold and silver are purchased on auspicious occasions in India. That is why there is a surge in demand for these metals during festivals and wedding season.
2. The global market movement also affects the price of silver. Investors consider the precious metal a safe haven for investment and less volatile. This means that oil and the dollar considered being riskier assets and certainly more volatile experience a drop in their price, then the value of silver grows simultaneously.
3. Political factors, and government policy also affect the domestic price of silver in India. Similarly, any political event, or major economic change which may have global impact also plays a role in the price of silver increasing or even decreasing.

Who Should Invest in Silver?

If one has been keeping tabs on silver market, one can easily detect that the price of silver has been improving. With an improving and increasing price, many are looking forward to invest in silver. Keep on reading to know more on who should invest in silver and who should not.

Even though silver is doing good at the market, experts warn that this price level may not be suitable for cautious buyers due to the precious metal's extreme volatility, which is twice as great as gold's. If we look at the standard deviation, which represents the danger of price fluctuation, for silver is between 27 and 28, but it is 12 for gold. Hence, people who are really cautious when they invest, silver is not a good place to do.

Any other investors who are interested can invest in silver, as it is a slow yet safe market to invest in. Investing in silver will also help diverse an investor’s portfolio.