Silver prices double in 10 months:Rates rise from ₹86,000 per kg to ₹1.75 lakh; experts caution short-term investors

This year, silver prices have more than doubled to reach ₹1.75 lakh per kilogram (kg). This is the biggest surge in silver prices in history (in such a short time). It has given 37% more returns compared to gold. In this situation, many people are wondering why silver prices are rising so much? Is this the right time to buy silver? What are the safe ways to invest in silver? We will find answers to these questions in this story… Question 1: What are the reasons for doubling of silver prices? Festive Season: India is one of the largest consumers of silver in the world. Buying gold and silver is considered auspicious during Diwali-Dhanteras. This has increased the demand for silver. Industrial Demand: Silver is most widely used in solar factories. Additionally, silver usage has rapidly increased in AI industry and electric vehicles. Supply Shortage: While silver demand is increasing, there are obstacles in its supply. Planned mining has decreased in some countries due to environmental regulations or mine closures. Additionally, about 70% of silver is extracted as a byproduct during mining of other metals like copper and zinc. Until copper mining increases, silver supply cannot increase. Due to this huge gap between demand and supply, silver shortage continues to persist. Question 2: Is it right to invest in silver at this time? Answer: Market experts believe that silver prices are at record high, so aggressive buying should be avoided… Question 3: How can you invest in silver? Answer: There are 3 popular ways to invest in silver… Physical Silver: This is the most direct method. You can go to the market and buy silver coins or bars. There are concerns about theft and purity, so you should only buy BIS hallmarked silver. You can buy it from reputable jewellers, banks and online platforms. Silver ETF: This is a fund that is based on silver prices. The money in it increases or decreases according to silver prices. These trade like shares on the stock exchange. You need to have a demat account. There are no concerns about theft or purity. Silver Futures: This is a trading method where you make a contract to buy or sell silver at a fixed price on a future date. This happens on MCX (Commodity Exchange). In this, you can buy or sell silver of higher value with margin by investing less money, but it carries more risk. Silver gave higher returns than stock market, gold, FDs ​