Should You Invest in Silver or Gold in 2025?

Silver or Gold in 2025:
Silver has become a popular investment option recently, showing great potential for high returns. While gold has traditionally been the go-to metal for investment, silver is now gaining popularity. The current price of silver per kilogram is around ₹1,25,000, which might seem high. But, you can start investing in silver with as little as ₹11 through Silver ETFs (Exchange-Traded Funds).

Silver or Gold in 2025:
Silver ETFs work by allowing investors to buy and sell silver without physically owning it. These funds invest in physical silver or silver-related assets. The price of the ETF rises and falls based on silver’s market value. The best part is that these funds are regulated by SEBI, ensuring that the silver purchased is of 99.99% purity.

One of the key benefits of investing in Silver ETFs is the low starting cost. For instance, Tata Silver ETF is available for as low as ₹11, while Nippon India Silver ETF is priced around ₹109. Investors do not need to worry about the purity of the metal or any additional storage costs, as the silver is kept securely in vaults and regularly audited.

Silver ETFs are also a great option for those who already have a trading account. You can buy and sell them easily during market hours, much like stocks. These ETFs provide good liquidity, meaning you can quickly convert your investment into cash if needed. Unlike physical silver, there is no need to store or verify the metal’s authenticity.

Another advantage of Silver ETFs is their ability to protect against inflation. When silver prices rise, so does the value of your investment. Mixing silver with other assets can help reduce risk in your portfolio. While physical silver requires you to store it securely and pay for making charges, GST, and other costs, Silver ETFs have none of these worries.

If you’re interested in starting with just ₹11, you need to open a Demat account with any trading platform like Zerodha, Groww, or Paytm Money. Once your account is ready, you can choose a Silver ETF and place your order. However, it’s important to consider the expense ratio and tracking error before investing. These factors can affect how closely the ETF follows the price of silver.

Lastly, Silver ETFs come with tax implications. If you hold your investment for over 36 months, it is taxed as long-term capital gains at 20%. If you sell it before 36 months, it is taxed as short-term capital gains, based on your income tax slab.

Experts believe that silver prices will continue to rise in the future, as the demand for silver in jewelry, electronics, solar panels, and batteries increases. This makes silver a valuable asset for long-term investment.