Physical Silver Compare

Additional Useful Information

• Physical Silver can be purchased based on the weight of the Silver being bought. There are several denominations of the weights that can be bought. They include 5g, 10g, 50g.

• Silver prices vary daily depending on various factors such as demand & supply related to inflation, geopolitical uncertainties etc.

• Physical Silver is not regulated by government like in the case of securities. It also requires careful and secure storage.

• Silver coins and bars are a more efficient way of investing as compared to Silver jewellery. That is because, Silver jewellery has additional design and making costs as well.

Returns *

• Physical Silver does not guarantee returns. However they are subject to domestic prices of silver.

• Over a ten-year period, investing in Physical Silver has resulted into a return of 8% to 10% per annum.

Risk Level

• Physical Silver is considered as a low-risk investment.

• Silver prices are dependent on the state of the economy. In an inflationary environment, Silver prices rise while during a period of low inflation, Silver prices are stable or decrease. It is important to analyse the state of the economy before deciding on purchasing Physical Silver.

Liquidity

• Physical Silver is considered liquid. That is because it can be easily sold at any time at prevailing Silver prices.

• At any time, investors can liquidate their holdings by selling their Physical Silver to a dealer. Generally, Physical Silver transactions are carried out by dealers. Dealers can include individual dealers or jewellery stores.

Interesting Facts

• Holding Physical Silver may involve storage costs (such as purchasing a safe or renting bank lockers).

• Silver is not as valuable as Gold. Gold is costlier to purchase as compared to silver.

• The price of Silver is however more volatile than the price of Silver. This is due to the fact that supply is lesser for silver.

• Investing in Physical Silver requires less paperwork as compared to Silver in other forms such as Silver ETFs, which require opening a Demat Account.

• Physical Silver is considered to be a good investment in times of market stress and economic uncertainties. It is a good inflation hedge, which means that silver prices rise in an inflationary environment. 

Tax Implications

• Eanings received from Physical Silver are taxable.

• When investors sell Physical Silver, the difference between the Sale Amount and Purchase Amount is typically called “Capital Gain” or “Capital Loss” (if sale amount is lesser than the purchase amount).

• The tax that the investor must pay on Capital Gain is –
• Situation 1 – If the Physical Silver is sold within a period of 2 years from investment, the Capital Gains earned (called Short Term Capital Gains) are added to the taxable income of the investor and taxes are required to be paid based on the applicable tax slab.
• Situation 2 - If the Physical Silver is sold after a period of 2 years from investment, the Capital Gains earned (called Long Term Capital Gains) are taxed at 12.5% on the gains.

• There is no tax in case of “Capital Loss”.

Where To Invest

• https://shop.mmtcpamp.com/silver/silver-bar