How to Invest in Silver in India

Article written by Sherin DevAbout two years back, I have not found even a single investor, including me, interested to invest in silver in India. Most of the investors were running behind gold or equities to invest than preferring silver as an investment instrument.

At the end of year 2010, the story has been changed. Intelligent investors realized that silver would be able to provide more profit than gold and start preferring silver as a possible investment instrument. They thus start searching possible options to invest in silver in India. However, majority of them got disappointed due to not able to identify right investment methods to keep investing in silver for long time appreciation. In the mean time, they have found gold provides lots of investment opportunities through gold ETF’s, fund of funds etc., but difficult to find such opportunities to invest in silver.

Some of the investors preferred to invest through options and derivatives, but it offers limited time for them to hold such investments. Must sell option associated with these investment again disappointed them and they started search for right options to invest in silver like equities, buy, hold and sell in right time.
Yes, We Indians now have silver investment options!One of the greatest and happy news for silver investment seekers are here. We now have option to invest in silver like gold or equities. It means, an investor can purchase silver whenever they wish, hold for long time, years and years if they want, and/or sell whenever they want. Exact how we buy stocks; buy in right time, hold and sell. This option allow investors, especially value investors to wait to get silver in right price, buy and hold for ever or sell in right time or even get the silver directly deliver to them in physical form!

What is that option?

I am not sure how many investors, especially retail investors, aware about the commodity exchange in India named NSEL (National Spot Exchange Limited) a venture from Financial Technologies India. NSEL introduced e-Series which offer investors a great opportunity to invest and hold 4 major commodities, Gold, Silver, Copper and Zinc exactly like how they invest in the equities.

What should an investor do to invest in Silver?

Investor required opening an NSEL trading account with any leading brokerage firm in India exact like the one for equity trading. Once opened, they can buy these commodities whenever they want to so do. They even have option to buy silver or any other available commodities in a systematic way by investing a small amount in each month. Here is the information database for the same. Have a look.Whenever buying silver from NSEL, it would be credited to investor’s DMAT account. It would be there permanently until the investor decided to sell or transfer to him in physical form. Just like holding stocks and shares in DMAT account! Once if the investor required delivering the same in physical format, there is an option available. Like options and derivatives, there is no time frame to sell your investments when purchasing from NSEL to your DMAT. You can hold it in your DMAT account, as long as you want. Investors also have option to add nominees for their investments.

Now, investment in silver is also possible in India with simple steps. Those who want to invest in this fast growing metal, visit to the nearest stock broker and inform them to open an NSEL commodity account. Visit NSEL or contact nearest NSEL representative in your place to get more information and clear any doubts on this investment.

Visit NSEL Faq page to get all your doubts cleared and start a trading account to start silver investments.