Commodities like aluminium, copper, zinc, gold and silver witnessed huge correction post covid as fear of unknown took hold of the markets. Whilst the demand recovery for commodities has been much stronger and faster than supply normalisation across the globe, the prices of commodities such as silver and gold haven’t gone up so sharply.
Today we talk about the silver lining, an opportunity in silver funds. Silver as a commodity is a tangible asset which has diverse industrial applications. It is used in renewable energy, jewellery, and in the form of investments. It is widely used in specialised electronic equipments – it is an excellent conductor of electricity, even better than copper. Supply of silver fluctuates in tandem with demand of other metals; however demand is heavily influenced by industrial manufacturing outlook.
Investments in silver can efficiently be made in 2 ways – silver ETFs, which are trading on the exchange & through Silver Fund of Funds (FoF). The benefits of both are - hedge against inflation, diversification, trading flexibility, store of value, no storage cost, convenience to buy in small quantities, no wealth tax, 99.9% pure & no making charges.