Table of Contents
1. Pick silver coins for small investment purpose
2. Go for silver bars for big investments
3. Use the online commodity market judiciously
4. Purchase from credible suppliers, always
5. Get these safely stored in bank lockers
6. Track Prices from various sources
7. Do not purchase everything at the same time
8. Sell when the silver prices are high
9. Try to have cash in reserve for excellent deals
10. Track the worldwide financial markets
Are you thinking about making silver investments? India continues to be among the biggest markets for gold, silver and other precious metals. It is among the biggest contributors of silver in the continent of Asia. Silver is among the reliable and low-cost precious metals that is suitable for investment. Other than being an appropriate commodity for investment, it has various industrial applications such as mobile phones, computers, solar panels etc.
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For the rural as well as the urban population silver can be quite a good asset for investment. Here are 10 important rules that you should follow before planning silver investments:
1. Pick silver coins for small investment purpose
In case you are planning to use only a few thousand rupees for silver investments, you may consider the purchase of silver coins rather than silver in any other form.
Also read: Demat or SIP – Which One is Better for Investment?
You can get these very easily and can also store silver coins at home without any problem. However, in case of silver coins, you have to pay a little more as compared to silver bars. This is because, silver coins generally come with some type of image or artwork on them and the labor costs are also added to the final cost.
Even if you have very less money, you can make silver investments when you purchase silver coins. It is a wonderful option for businesspersons and salaried people who wish to make regular savings.
2. Go for silver bars for big silver investments
If you have a lot of money for silver investments, it is a good idea to put your money on silver bars. You can save money easily for your future. In the market, silver bars enjoy good demand. When you wish to sell these in the future, you will not experience any problem.
Try to get the best deals in the market from credible suppliers. It is possible for you to choose silver bars rather than coins. It might not be possible for you to get these through banks due to their weight. There is also the fact that banks like to sell only packaged coins which have certification from esteemed sources. But you may approach jewelers who carry out this on these types of bars. You should also get purity testing done on them before purchasing them from the market.
3. Use the online commodity market judiciously
If you are not someone to make physical silver investments, you may still carry out silver investing through the commodity market. In this case you will need to make a little higher investment then traditional silver. You will also need to pay a specific percentage of the whole contract value.
It is important for you to have enough funds to make payments for extra requirements because of silver rate fluctuations in the international market. You may sell the contracts easily in the future, prior to expiry, whenever you manage to get good profit over your silver investments.
4. Purchase from credible suppliers, always
You can purchase silver bars and coins from any resource. However, it is always recommended that you get them from trusted sources in order to be on the safe side. As far as silver coins are concerned, you can purchase certified coins easily from banks, although some extra premium is charged.
However, you should approach local jewelers in order to buy silver bars and get these tested for purity from esteemed sources. This can help you ensure their purity and you can also get optimal value during resale of silver investments in the future.
You should never purchase these from unknown traders because you will face problems in ensuring the purity of the bars. There are high risks of getting cheated in such cases.
5. Get these safely stored in bank lockers
A lot of people make a mistake by keeping silver bars at home. This can be a big problem when you purchase a large amount of bars for silver investments. It is important for you to never make compromises on the safety factor and always safeguard your silver investments in bank lockers.
Bank lockers can be accessed at very low cost. You can access your silver at any time that you like and not have to worry about burglary or theft at home, which can put your entire silver investments at risk.
6. Track Prices from various sources
There is fluctuation in the rates of silver every day. Due to this reason, you always need to check the prices of silver in your city at all times, to be able to get the best deal for your silver investments.
It is particularly important when you purchase silver bars from any local trader. This is because you can manage the best deal when you have a proper idea about the prevailing silver rate in the market.
You can find plenty of sources and apps that can provide you with up to date details about the latest rates of silver in the market. It is possible for you to get authentic and updated information on your mobile phone. It can be useful when you make purchase for silver investments and help you make savings during your transaction. It can also be advantageous when you try to sell your silver investments, because you can manage to get good profit.
7. Do not purchase everything at the same time
It is impossible for you to predict the future price of any commodity. Naturally, you should always try to purchase your investments in installments. It can help you obtain the average price over time.
8. Sell when the silver prices are high
Try to sell of your silver investments when you find that the prices are high in the market. It can help you obtain maximum profits. Keep in mind that you can always purchase them back in the future when there is a drop in the prices.
9. Try to have cash in reserve for excellent deals
If you want to invest quite a few lakhs for silver investments, try to have 20% cash reserves in your account at least, to deal with emergency situations. At a later stage, you can use such reserves to obtain excellent returns on your investments.
10. Track the worldwide financial markets
Global financial markets have an effect on silver prices in India. You should always be aware of market movements and plan your silver investments accordingly.
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Conclusion
Keeping these 10 rules in mind, you can make the most of your silver investments over the long term. It is a good idea that you get in touch with a reputed financial advisor while planning long term investments in silver.
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