Why is Silver Becoming so Expensive? | Startup | Sarthak Ahuja

While Gold is rising, do you have any idea the kind of returns Silver has been giving...
👉🏼 As of end of April, over the past 5 years, Silver has given returns of over 13.1% p.a., which is higher that Nifty’s return of 12.3% and 13% by Gold
👉🏼 In the last 3 years, Silver has given over 20% p.a. while Gold has given just over 8% p.a.
👉🏼 In the last one year, Silver has given ~30% returns while Gold has only given 20%
If you study the silver rates over the past 20-30 years, you’ll realise that silver is extremely volatile and there have been periods of over 8-10 years, where it has literally seen no growth.
By comparison, Gold gives much more predictable returns of around 11% p.a. over a long period of time.
But, there’s a change in the environment which is making silver rise rapidly because of two reasons:
1/ The demand for Silver is now no longer in jewellery, and half the demand comes from industrial uses, where solar panels and green energy, EV, hydropower, 5G telecom towers is becoming the new frontier for its use... and there just isn’t enough silver for how much is required.
2/ Silver is currently cheaper in India than outside the country... and the rates will equalize over the next few months... why?
Because a lot of traders have imported silver from the UAE at a lower import duty of 6-8% using a trade treaty between the countries... while the actual import duty is 15% on the item.
This huge import has led to a large supply in India and created an arbitrage opportunity between the rates in India and outside.
👉🏼 So should you buy Silver right now?
I’d say there may be seen growth over the next 2-3 years due to the high demand in such new industries and the supply being limited... but because of technological changes, whether it will continue over the long term, one can’t say.
And if you want to invest, instead of buying actual physical silver, you should consider getting Silver ETFs... a huge number of new ones have come into the market.
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A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.
Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.

[@__ansh]

Sir your source for research or reading?

[@jatingoyal5943]

Yes sir, please reply to this one.