“Silver” The new Gold

Gold has arguably been the most precious of all the metals since mankind came into existence. All the 3 yugas as per the Indian mythology starting from Satyug and Dwapar towards Treta. The Gods and the effluent of the society wore the metal and it was the go to commodity for price/value derivative.

The Kalyuga specially the current century has seen to shift the paradigm from the antiquated Gold towards a new find love for Silver. Well the reasons for the new fondness in the metal is not the same as it used to be of design or social status rather a modern approach of its UTILISATION resulting in its renewed importance as a metal asset class.

LETS SEE THE DATA…

– Silver rates have touched a 100k/KG mark in the current month which is almost a 35% increase in the price of the metal over a 12 month period.

– It grew almost 12% alone in a single month of September and NO it wasn’t because Diwali is around and a lot of people were buying the silver coins for gifts.

THE NEW FIND METAL CLASS

The rising industrial demand of silver has its usage in modern electronics, Solar Panels, Batteries and Semi conductors making it a critical component in modern technology. The federal rate cuts over the last year, ETF buying by the domestic investors were also the few reasons for this hike in the prices for Silver.

As the technological advances boom and demand for modern electronics equipment and semiconductors increases a steady rise in the rates of silver can be seen.

As for the data charts, The metal has broken the bullish barriers and is all set to build it up from here. So what should a retail investor do to capture the trend and ride the wave

INVEST IN THE METAL

– A inclusion of a 5-10% of silver ETF/Mutual Funds in your portfolio can be a starter.

– Investors can also opt for a SIP in silver FOF(funds of funds) in case you aren’t able to buy a large sum at once.

– A small but decent physical silver can always be a good investment only if you can be non-emotional social stigma wise of selling it when required.