Investors’ interest in silver is increasing. Silver is used in many types of industry. Due to this, its demand is increasing, which is affecting its prices. In 2024, silver supply was less than the demand. Silver is being used in the production of solar energy, electronics and electric vehicles.
Silver may rise 15-20 percent
Experts say that Gold Compared to Silver The valuation is low. Its address is found from the Gold-Two-Silver Ratio. Historically its average ratio has been 68. However, it has just reached around 90. This means that silver valuation is less than gold. Many experts say that if there is stability in the prices of gold, silver may show a 15-20 percent jump.
Silver gave 27 percent return in the last one year
In the last one year, where gold has given 32 percent returns, silver returns have been 27 percent. If we talk about five years, then during this time the gold Cagr return has been 11 percent, while silver has been 9 percent. Silver investment also helps in diversification of portofolio. Investors can invest in silver ETF or Silver ETF FOF to bet on silver.
Difference between Silver ETF and Silver FOF
Silver ETF is a fund that invests directly into physical silver. Trading of units of this fund is in stock exchanges like shares. However, a demat account is necessary to invest in Silver ETF. Silver FOF invests into several silver ETFs. A demat account is not necessary to invest in Silver FOF. However, the expansion ratio of the silver FOF is slightly higher. Its expans ratio is between 0.70 to 0.96 per cent, while the silver is between 0.40 and 0.56 per cent of ETFs.
Silver ETF Tax Rules
It is also necessary to understand the rules of Tax of Silver ETF and Silver FOF. Capital Gains, which were sold after 12 months after 12 months, will be considered as long term capital gains. This will be taxed at 12.5 percent rate. The Gains on selling before 12 months will be considered a short term capital gense. It will be taxed according to your tax slab.
Silver FOF Tax Rules
Tax rules are different for Silver FOF. The Gance on selling it after 24 months will be considered as the long term capital gence. It will be taxed at the rate of 12.5 per cent. On selling before 24 months, it will be considered a short term capital gain. It will be taxed according to the rate of the slab of the taxpayer. Investors who have a demat account can invest in Silver ETF.