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    Is silver becoming the new gold? Here are the ways to invest in the metal

    Is silver becoming the new gold? Here are the ways to invest in the metal

    Is silver becoming the new gold? Here are the ways to invest in the metal
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    By Anshul   IST (Published)

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    Silver has emerged a best performer in 2020, with double digit returns of more than 70 percent when compared to March lows.

    Silver has emerged as the best performer in 2020, with double digit returns of more than 70 percent when compared to March lows. At instances, it has also outdone gold in terms of performance.
    Prathamesh Mallya, assistant vice president, research non agri commodities and currencies, Angel Broking considers firmness in gold prices, rebound in industrial activity across the globe amid hopes for COVID-19 vaccine, weak US dollar and the breach of key technical marks the reasons behind the rising prices.
    He expects this momentum to continue in the weeks ahead.
    "The rally might further extend towards Rs 63,500/kg till this Diwali," he opines.
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    Navneet Damani, vice president, commodities research at Motilal Oswal Financial Services Ltd, seconds Mallya’s view.
    “The prices may eventually even touch life-time highs of Rs 74,000," he added.
    Considering the trend, investors who have a risk appetite and long term horizon can invest in the metal to tap future gains, suggest commodity experts.
    In view of this, let’s look at some ways to invest in silver:
    Physical Silver
    Investors can buy silver ornaments,  coins and bars from banks and shops.
    For small size investors, experts say, physical gold is a big boon.
    There are many online platforms that are currently offering discounts and cashback on silver buying.
    Commodity Futures
    Another form of investing in silver is through the commodities market.
    "This help investors to take the benefit of price volatility," Mallya explains.
    To start doing so, investors need to put in a special request to broker and ask them to invest in exchanges like MCX and NCDEX. These exchanges have silver futures also that one can avail of, according to Policybazaar.
    Silver Exchange Traded Funds (ETFs)
    Investors who have a foreign brokerage account can also invest in iShares Silver Trust (SLV) – a type of ETF that tracks the price performance of the underlying holdings in the 'London Silver Fix Price'.
    "Silver Ishares holding have been stagnant over the last five years, with sudden rise over the last one year. Major thrust has come in over the last two months, setting fresh record levels every week and is currently at 16,051 tonne. Silver backed ETFs have now expanded by over 25 percent in 2020 to record high levels," Damani opines.
    Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
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