Are you looking for Silver ETF in India? Or for a Silver mutual fund in India? I will answer all your questions related to silver-based exchange-traded funds in India.
Are there any Silver ETFs in India?
No. As of now (2021), there are no silver ETFs or Silver based mutual funds in India.
How do I buy Silver ETFs in India 2021?
Or
How do I buy Silver ETFs online in India?
You need to wait a bit more. Since there are no sliver ETFs here for the time being. But this will change soon. SEBI is planning to put in place some regulations so that Silver ETFs can be launched in India.
If you ask about the difference between Gold vs Silver ETF, then the only difference is that one has gold as the underlying asset and the other has silver. That’s the main (or only) difference between silver ETF Vs Gold ETF.
Like Gold ETFs, silver-backed exchange-traded funds (ETFs) are expected to have strong demand in India.
Most silver investors currently buy the metal physically* or use commodity derivative instruments to trade in silver. Many others who have overseas broking accounts tend to buy Silver ETFs that are listed abroad.
One major issue with purchasing physical silver is that for a given amount you want to invest, it is much bulkier than gold. For example, the price of 10 grams of Gold is about Rs 45-50,000. But the price of 1 kg of silver is around Rs 65-70,000. So storage is a challenge as silver is a cheaper alternative to gold.
And once introduced in India, I am pretty sure that in a very short period of time, the volumes of silver ETF or silver exchange-traded fund would far exceed that of gold.
With respect to prices and how Silver vs. Gold compare as investments, do understand that silver tends to be more volatile than gold. It can go up sharply and come down equally quickly. So silver investing is not as glamorous as it might look from the outside.
How much silver should you invest in your portfolio?
I would say that given its far dynamic nature than gold, silver investing isn’t for everyone. I have said earlier that one can have 5-15% gold in their long-term portfolio. If you are interested in silver and want to someday invest in silver ETFs, then it’s better to limit it within the overall suggestion of 5-15% for gold and all precious metals you want to invest in. Also, gold should be a major chunk for that, unless you know how to handle silver properly as part of your portfolio.
Further Reading – How much gold to invest in your portfolio?
Silver price volatility is much higher than that of gold. Why? Because even though both are precious metals, their demand and supply forces are very different from each other. That said, silver investing is more about timing it correctly (tactical approach) than about gradually accumulating it that you do with Gold Bonds and Gold ETFs.
Further Reading – Gold Bonds Vs Gold ETF?
Many traders look at Gold-Silver Ratio to invest in silver and gold.
What is this Gold-Silver Ratio?
The gold-silver ratio is one of the oldest continuously tracked exchange rates in history. It is an expression of the price relationship between gold and silver. The ratio shows the number of ounces of silver it takes to equal the value of one ounce of gold. Silver and gold investors do look at the gold-silver ratio as an indicator to decide the right time to buy or sell gold and silver. From what I know, when this ratio is at high levels and the traders anticipate a decline in the ratio, then that would mean that there might be a decline in the price of gold relative to the silver price.
If one is interested in investing in both silver and gold, then this gold-silver ratio can be used as an indicator to decide allocation between these two precious metals.
Currently, there are no silver ETFs listed on the NSE or BSE. So no silver ETF on NSE or silver ETF on BSE. And also no way to get a Silver ETF price in India.
But I think that SEBI is doing the right thing by setting the ball rolling for the launch of silver ETFs in India. At least a small portion of the investor community is suitable for silver-based ETF investments – those with a comparatively high-risk appetite. And I am sure once the regulatory structure for silver ETF is in place, all major AMCs will launch the products like Nippon India Silver ETF, Silver BEES ETF, SBI Silver ETF, HDFC Silver ETF, etc. among many others.
Once silver ETFs and silver mutual funds are available, only then I can answer questions like “What is the best Silver ETF in India?” or “Is silver ETF A Good Investment?” or provide you with a list of Silver ETF India 2021.
So I hope I was able to give some useful information about Silver ETF in India (2021). Let’s wait and watch by when silver ETF is finally launched in India.