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Top Reasons to Invest in Silver in 2024

India continues to be one of the greatest markets for precious metals like silver and gold.

In fact, India is one of the biggest contributors of silver in Asia, and any changes in the demand pattern influence the price of silver in the international market.

Today Silver Rate in India makes it an affordable option to invest in silver bullion and ornaments. Apart from investment, silver is widely used in industrial applications like solar panels, computers, mobile phones, and so on. It has not been replaced by any other metal so far.

But gold, on the other hand, is for wealth accumulation. It is mostly found in bank lockers or is safely stored in central banks.

India’s Contribution to the Global Silver Market –

As per the World Silver Survey 2022, published by The Silver Institute and Thomson Reuters-

  • India has jumped to 12th position (from 14th last year) among the Top 20 Silver Producing Countries.
  • India’s contribution to the silver market has increased to 16.9 million ounces as compared to 14 million ounces in 2016.
  • Investment in physical silver bars has picked up by 14% in the Asian market, only due to the rebound in Indian bar purchases. However, a downfall of 9% was seen in other global markets.
  • In the coin manufacturing segment, India’s share has increased to 56% last year as compared to 43% in 2016.
  • Silver fabrication of coins and medals in India spiked from 9.4 million ounces in 2016 to 9.8 million ounces in 2017.
  • India spearheads the Asian market due to the expansion of its bullion coin fabrication. It also dominates the Global silver bullion movements as per the report.

Perhaps, the global market trend indicates a positive to investing in silver.

For the Indian urban and rural population, it is a good investment asset, probably for the following reasons-

1. Silver is Economical to Purchase

Silver can be easily purchased from banks, market dealers, bullion traders, etc. The greatest benefit of investing in silver is its economical price. Investors can buy 10 grams of silver at a price of about INR 426 only. Today the silver rate is INR 42,744 per kg.

Investors who find it difficult to put money in a full ounce of metals like gold can go for a much more affordable and reliable precious metal like silver. Silver coins, bullions, and ornaments are widely used in India for gifting purposes on auspicious occasions.

2. Increasing Global Demand

The demand for silver is surging evidently in the Indian and Chinese markets as per the reports. And, India leads the industry share as compared to its former counterpart. 

The demand for silver is also growing in the global market. But, India continues to dominate because of its cultural kinship towards it. Amid the growing population, the demand and supply continue to grow, making it a safe investment option.

A silver jewelry manufacturer can make huge profits in today’s market due to this high demand. They are allowing smaller jewelry companies to manufacture unique silver jewelry designs on a mass scale.

3. Jewelry and Ornamentation

The global silver jewelry fabrication market is dominated by India, and its contribution is more than 30% of the total offtake. The market is rapidly evolving to meet the increasing demand of customers globally. India is a traditional market, and the demand for designer and cultural silver ornaments will always be on a rise.

The silver industry is adapting to new market forces worldwide – from the USA to India. It seems that the market is ahead of the curve, and for investors and customers, it will be beneficial to put their money in this precious metal.

3. Significant Industrial Use

Surprisingly, silver is found in our everyday products like batteries, electronics, jewelry, phones, cars, silverware, etc. Every major industry uses this precious metal to manufacture different products ranging from solar panels to medical applications.

It is not wrong to say that silver is one of the most indispensable metals. The demand for the metal has hit the roof, especially when it comes to its industrial applications because it possesses some of the rarest characteristics – it is both thermally and electrically conductive and reflective. Today the silver rate is not very high, which adds to its usefulness in industrial applications.

As per the data released by the Silver Institute, silver is widely used in various industries and products, and this percentage is only going to increase in the future. Here are some of the figures to second that –

  • The demand for silver is expected to rise by 75% for the construction of solar panels as compared to what it was in 2015.
  • The smartphone market will continue to grow relentlessly worldwide and the demand for silver will also grow sustainably, as there is about 1/3rd of a gram of silver in a mobile phone.
  • Over 36 million ounces of silver are used in the automobile industry every year for silver ceramic lines, spark plugs, antifreeze elements in a car radiators, etc. We are not going to stop using cars, and so the demand for silver will also not stop. It is estimated that the demand is only going to surge by 32% in 2022.

The use of silver in industrial applications is endless. Simply put, its demand will keep expanding and so will the supply, which makes it one of the best investment assets.

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