What the Global Economic Crisis Means for Silver ETF Investors in India

What is Silver ETF?

Silver ETF is an exchange-traded fund that invests 95% of its underlying assets in physical silver that tracks the price of silver on stock exchanges. With Silver ETFs, investors do not need to worry about the purity or quality of the underlying asset and are also free from storage hassles.

Chintan Haria, head of product development and strategy, ICICI Prudential AMC, said that given the situation where inflation remains stable, silver can do well.

“With global central banks signaling a slower interest rate hike, a commodity like silver looks interesting due to an economic boom. Silver price history shows that silver prices can rally in times of rising inflation. Also Silver, being a precious commodity, has helped in times of crisis. In each of the three previous periods of crisis (subprime mortgage, taper tantrum and COVID-19) that affected global financial markets, silver has performed as an asset. has outperformed equities as a category,” said Chintan Haria.

Hariya believes Investment Silver enables ETFs to improve the overall risk-adjusted return of the portfolio.

“Investors can consider 5% to 10% allocation to silver as a part of their portfolio. Investors having demat account can consider investing in silver ETF form and those without demat can consider investing in silver fund of funds route may consider investing,” said Haria.

Gold prices rise amid strong global trends since 352 53,677 per 10 grams on Thursday in the national capital. silver also rose from 1,447 65,003 per kg.

PTI Senior Vice President (Commodity Research) Navneet Damani said, “Gold and silver prices registered their biggest monthly gains after US Federal Reserve Chairman Jerome Powell’s speech emphasized expectations of further hike in interest rates.” Went.” Motilal Oswal Financial Services,

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.