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- Silver Ibja Price Rate Update Exchange Traded Fund (ETF) | Business news
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Silver prices crossed Rs 1.10 lakh per kg for the first time on July 11. According to the India Bullion and Jewelers Association (IBJA), the price of silver has increased by Rs 24,273 so far this year. That is, silver has given a return of 28% so far this year.
Ajay Kedia, director of Kedia Advisory, says that now silver industrial demand has started growing again. Due to which silver can go up to 1 lakh 30 thousand rupees this year.
In such a situation, if you are planning to invest in silver, then silver ETF can be the right option. Through this, you can also invest in silver like share. In this, you can start very little i.e. 100 rupees.
Here we are telling you about Silver ETF today …
What is Silver ETF? Silver ETF means Silver Exchange Traded Fund. To understand this, just know that this is a fund which is based on silver prices. You invest money in it, and this money increases according to the price of silver.
But in this you do not need to buy real silver. Neither a vault nor a locker is needed. All these work is done by fund houses, and you can buy and sell it through a demat account on just stock exchange (eg NSE or BSE), such as a share.
How does this work? The fund house of Silver ETF purchases real silver, which is 99.9% pure. Now the ETF you buy, the price of the silver market is on the price. If the price of silver increases, then your ETF also shines. And selling it easy, sell it in trading time in bus stock market.
There are many benefits to invest in Silver ETF
- Silver can also be purchased in small quantities: Buy in silver units through ETF. This makes it easier to buy silver in small amounts. The price of 1 unit of Silver ETF is currently close to 100 rupees. That is, you can start investing in it for 100 rupees.
- Silver remains safe: Electronic silver is in a demat account with only an annual demat charge. Also there is no fear of theft. In addition to the threat of theft in physical silver, it also has to be spent on its safety.
- Ease of business: Silver ETF can be purchased and sold immediately without any hassle. That is, if you need money, you can sell it whenever you want.
It also has some risks
- Price fluctuations: Silver prices sometimes change very fast. If the market declines, the price of ETF will also fall.
- Industrial demand depends: Silver is used in solar panels, electronics, and medical equipment besides jewelery. If the demand in these industries decreases, then the price of silver may also be affected.
Things to keep in mind while choosing silver ETF
- Fund House: Always choose the ETF of a fund house whose record is good and the management fee is low.
- Tracking error: Some ETFs are unable to follow silver prices completely. In such a situation, give priority to trekking error low ETF.
- Long investment: Silver prices fluctuate in a short period, so keep 3-5 years of attitude.
Disclaimer: This story is only for information. We advise investors to consult experts before taking any investment decision.
