With Diwali around the corner, we know you have shopping in mind, so here are some pointers in case you are zeroing in on silver.Risks associated with silver Just like any other commodity, silver prices are driven by demand and supply, and investor speculations in the market and there is no guarantee of high returns, so we recommend assessing of investments periodically.As a hedge against stock volatilityInvestors turn to commodities such as gold and silver in case of stock market turmoil.Due to the low pricing of silver, the production of this precious metal has dropped across the world. So whenever inflation ticks up, the value of these commodities go up. However, there is a caveat: silver is more volatile than gold and the volatility works both ways. This will balance out the price fluctuations in silver and restrict losses in case of unforeseen circumstances.Silver has more use than a monetary metalUnlike gold, silver finds use in industrial and medical applications and has seen a huge rise in demand in the recent years.It had seen big returns between 2007 and 2013, with prices breaching the Rs 60,000 per kg milestone.Another challenge one faces in buying silver from jewellers is figuring out the quality and grade of the metal.com. As inv-esting in commodities is always risky, we suggest minimizing the risk by diversifying the portfolio. Also, go for a small sum at periodic intervals. Unlike gold, where you end up investing thousands, silver can be bought with a few hundreds.Silver is more volatile than gold Like gold, silver is known for being a defensive investment.
The writer is CEO, BankBazaar.Since then, prices have fluctuated and currently it stands at Rs 37,144 per kg, which is closer to what silver used to trade at towards the end of 2010. Buying from a bank is always a safer bet. While both had similar returns in the past, silver prices have dropped sharply then onwards. A 10-gram coin of silver costs about Rs 340 only. Silver had a strong run between 2007 and 2013, when the stock market came crashing, leading to financial crises across the world. While the returns are higher compared to that of gold in a bull market, the wholesale Metal Raschig Ring Suppliers drop is sharper than that of gold when the market is bad for the asset.Unfortunately, asset management companies or exchanges do not offer silver funds or silver ETF unlike gold funds and ETF, so silver cannot be held in electronic versions. In the form of jewellery, the white metal is available in stores and is more affordable than gold.However, the problem lies in storing the metal in a physical form, as silver is bought in larger volumes compared to gold due to its affordability
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