Investing in silver : Business Line

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Investors can bet on silver through the spot commodity market.

Now, suppose one would like to bet on silver for the long term, how can one invest in it?

With silver-ETFs not available in India, investors may choose to bet on silver in the spot commodity market where investment is allowed in electronic form.

The National Spot Exchange of India provides an online platform to buy silver in demat form.

On a daily basis 500-600 units (50,000-60,000 gm) of e-silver are traded on the exchange's platform. The exchange provides counterparty guarantee in terms of quantity and payment. Indian investors have the option of investing in silver in the physical form — bars/coins too. Physical investment brings with it problems of safe-keeping and related charges. But, when bought in the electronic form, from National Spot Exchange (NSEL), the investor is assured liquidity and also lower investment cost.

One unit of e-silver is equal to 100 gm of silver. Units of e-silver can be purchased online through an account with any of the authorised trading members of NSEL. The purchased units are credited to the buyer's de-mat account. Trading of these units can be done online as in equities. However, investors are given an option to take delivery of the units they hold.