India has been one of the dominating leaders in producing precious metals like gold and silver. Much of the silver’s popularity stems from the fact that it holds value in Indian tradition. It is widely consumed during the wedding season, religious festivals, etc. The growing demand for silver bars and coins has made India one of the biggest contributors to silver.
The best part about gold jewelry is that you can get a gold loan on a per gram basis to manage your finances during a cash crunch. Likewise, silver bars can be pledged as collateral to avail of loans. Besides the aesthetic and heritage value, it is a great investment option.
If you want to invest in silver bars, it is imperative to know the market. It is advisable to compare the rates from different suppliers before buying silver. Here is the complete guide to buying silver in India.
Find reputed silver suppliers
If you visit the silver market, you will find several suppliers to buy from. It would be wise to find a reputed silver supplier, as the market is filled with dealers that indulge in unethical practices. The benefit of going to a reputable seller is that you can buy certified silver bars, even though you will have to pay the extra premium.
A golden piece of advice would be to get the silver bars tested from reputed sources for purity while buying silver bars. This way, you can get authentic and pure silver bars and get the best value as the silver prices rise in the market. So, make sure to never buy silver from unknown suppliers as you may not be able to ascertain the purity level of the silver bars on your own.
Compare silver prices
Just like the price of gold jewellery, the silver rates keep fluctuating every day due to the market conditions. It is imperative to keep checking the silver prices online and compare them with your silver trader’s price to get the best price in the market. When buying silver bars from local traders, it is crucial to compare prices to have a thorough idea of the current market rates.
Another way to get the best price available is by visiting the reputed websites and using mobile apps that provide honest and accurate information about the silver rates in the market. You can use the apps on your phone to get the exact details. Knowing the silver suppliers’ rates and comparing them with different traders can get you a good return on your investment. Also, you can prevent fraud.
Do not make bulk purchases
If you need silver bars in large quantities, it is advisable to wait for the market to turn in your favor. It can be time-consuming, and if you can wait, you certainly reap good returns. It is worth noting that it is not possible to predict the future price of silver bars. Therefore, you must buy silver in instalments. This way, you can get the average price over a period.
Sell silver bars when the prices are high
Even though silver bars are best suited for long-term investment, it is not wise to hold them for the entire duration. When it comes to silver prices, the call for practicality is strong. When the price for silver bars increases, it hints at the right time to sell them off. The price difference can earn you a good return on investment.
Also, keep in mind that you can always buy them back at a later time when the prices are in your favor again. Due to silver bars rate fluctuation, you can continue making money. Hence, it is imperative to compare the silver prices in different cities and states of India to get a fair idea of where to sell or buy silver bars.
Keep cash reserve for emergency deals
If you have a large amount of cash to buy silver bars, a golden piece of advice would be to keep at least 20% of it as cash reserves. The silver market is unpredictable too, and the prices may fall soon. In such cases, you can utilize the reserved cash to get a favorable return on your investment.
Know the global financial market
The prices of silver bars and coins in India are influenced by the global financial market. When the silver rates increase in the global market, so do the prices in India. At times, you see a sudden rise in the silver price, and then there are times when the prices fall unexpectedly. Therefore, you will need to keep a track of the global financial market and plan your investments accordingly.
Over the past decade, the demand for silver bars and coins has increased exponentially. With the fluctuating prices, you can earn profits in the long run provided you follow the above-said guidelines.