Silver Investment In India: ETFs, Physical Silver and More
Silver isn’t just a piece of jewellery. It is an investment choice for many investors. From coins to ETFs, there are several ways to invest/purchase Silver. This guide breaks down all the different silver buying options and helps you figure out the best way to buy silver in India based on your goals and budgets.
What are the different ways to invest in Silver?
Silver can be bought in both physical and digital forms. Here are the most common ways to invest in silver:
- Silver Jewellery: Buying silver jewelry is quite common in India. It is often given during festivals and weddings. They can be purchased through jewellers. But one has to take responsibility for the storage.
- Silver Bullion Investment: This includes both bars, bought mainly for investment rather than adornment.
- Silver ETFs (Exchange Traded Funds) or Silver Fund of Funds: Silver investment in India is no longer limited to physical assets. With silver ETFs, you can buy and sell silver like a stock on exchanges. The ETFs track domestic silver prices - subject to tracking error and you don’t actually store the physical metal but track the silver prices.
- Digital Silver: Traded on online platforms, one can invest in silver digitally. However, recently, SEBI issued a caution to the public regarding Digital Gold or similar instruments that it may entail significant risks for investors.
- Silver Futures: You lock in a silver price today for a future date. It is risky and can involve losses if the market moves the other way.
What is the Best Way to Buy Silver?
The best way to buy silver depends on your investment goal:
- For physical ownership, one may look for silver bars/coins/jewelry.
- If you want ease of investing, you may choose silver ETFs/FoFs; as they have no storage hassles.
What is the most affordable way to buy Silver?
Silver ETFs may be considered the most affordable when you are looking for easy and manageable ways to invest in silver. Some of the key features of silver ETFs are:
- SEBI-Regulated: All silver ETFs in India are regulated by SEBI. It ensures transparency and investor protection through regular audits and disclosures.
- Low Minimum Investment: Investors can start with small amounts, making it accessible even for beginners.
- No Storage Hassles: Since you are not holding physical silver, there is no need to worry about lockers or theft; ownership is digital.
- Easy Trading: Silver ETFs can be bought and sold like stocks through platforms such as NSE or BSE, offering liquidity.
- Purity Assured: Silver ETFs are backed by 99.9% pure silver, stored with registered custodians, which removes concerns about purity.
Why Invest in Silver?
Silver may not get as much attention as gold, but it is quietly powerful.
- Affordable: At under Rs.228 per gram[1], silver is much more affordable than gold.
- Industrial Demand: Used in solar panels, electronics and medical devices and other industrial applications.
- Diversification: Helps you diversify your portfolio beyond equity, debt and gold.
Conclusion
There is no single “one size fits all” when it comes to silver. The best way to buy silver in India depends on what you are looking for. It can be affordability, liquidity etc. If you are looking for tangible assets, you may opt for silver bars. If convenience and affordability matter, you may opt for silver ETFs. Silver isn’t just a shiny metal, it may be a simple way to diversify your portfolio.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Please note that this article or document has been prepared on the basis of internal data/ publicly available information and other sources believed to be reliable. The information contained in this article or document is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party in any manner. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article or document.
Source: Silver Price as of Jan 1st, 2025
Published on Jan 8th, 2026