SILVER – If you ask this word to commodity investor, they will run away from you. Because in last one year they made huge loss in silver by investing huge amount. In last year silver was traded around Rs.75000.Price of the silver was sharply increased from Rs.45000 to Rs.75000. Every investors purchased this at higher level by expecting this price may go upto Rs.1 laks. Unfortunately silver fell down below Rs.50000 and made a puzzle to every investors. But the price increased 10% from that lower level. Even now every investors thinking to invest in silver.
Silver Price Chart
But practically if we see this, this fear is not necessary for every investors. In long term basis silver has given good profit compare to gold. In last ten years gold has yielded 18.6% profit and silver has given 21% profit in this period. Many analysts feels this profit will continue in coming days also.
Usages of Silver
11% Gold is used for industrial purposes rest of the gold is used for ornamental purposes. But 48% of silver is used for industrial purposes. Silver is used in Batteries, Electric switches, photovoltaic cells and many other electronic instruments. In the year 2016 demand of silver will increase 60% more as compare to now.
Silver Investments
In earlier days gold was purchased only for ornamental requirement. But now-a-days many peoples are purchasing gold for investment purposes. 41% of the gold purchase are only on the basis of investment. This includes Gold ETF fund and other gold funds. But in our country there is no opportunity to invest Silver ETF or other silver funds. So launching this ETF funds in India will take time. So we need to buy silver as bars. All commodities prices are subject to increase and decrease. But in silver this up’s and down’s more compare to gold. In the year 2008 gold fell down to 18% and silver fell down to 28%. In the year 2011 gold fell around 11.50% and silver fell down to 26%. In the year 2009 price of the Gold increased to 10% but silver raised 23%. In the year Feb 2011 silver increased 20%, but gold increased 6% only. So if we buy the silver at lower level, we cannot make loss.
Silver Bar
How to identify the Lower price
Silver is mostly used in industrial usage like solar plates, laptop monitors and LCD tv screens. Now demand for silver is increased worldwide. Now 1Kg silver is trading around Rs.56000. From this price there is an chance to go down up to Rs.50000. But reaching last year high price Rs.75000 may take another 3 to 4 years. Now this silver is trading sideways. We feel silver price level may not go below Rs.50000. But if it increase it will give good profit. So buying at the price level between 45000 to 50000 will be an good idea to make a profit in long term.
I purchased silver at 68000 last year by hoping it will go up. After reading this article sincerely I hoping for another raise.