Silver lining

As an investment asset, silver no longer pales before gold

- NACHIKET KELKAR

Gold made headlines this year with prices touching ₹1 lakh for 10 gram, as investors and central banks alike rushed to buy the yellow metal amid the global geopolitical and economic uncertainties.

Gold was also in the spotlight for the price volatility. Prices saw a sharp drop when the conflict between India and Pakistan eased and the US and China signalled progress in trade talks.

While gold was making headlines, another precious metal has been quietly making investors smile. Silver gained near 35 per cent in 2024. Its prices recently hit ₹1 lakh per kilo and industry watchers expect it to continue shining brightly.

Both gold and silver are seeing strong uptick as an investment asset as well as jewellery. However, silver has wide-ranging industrial use and, therefore, potentially never-ending demand. That is driving the optimism among the silver bulls.

In the past few months several asset management companies have launched schemes linked to silver. In April, DSP Mutual Fund launched its silver ETF fund of funds (a mutual fund that invests in other mutual funds), which primarily invests in units of DSP Silver ETF (exchange traded fund). It offers a convenient way for people to invest in silver. On May 9, it closed for subscription, but will open again for continuous sale and repurchase from May 19.