Invest in silver to benefit from an upturn in the industrial cycle

Those taking a strategic exposure must have a long horizon and invest via the SIP route to benefit from its volatility

ICICI Prudential Mutual Fund and Nippon India Mutual Fund have got off the block first with the launch of their silver exchange-traded funds (ETFs) and fund of fund (FoF). A number of other fund houses like DSP, HDFC, and Mirae will soon come out with their offerings after obtaining the regulator’s approval.

A pro-cyclical asset

Even though silver is a part of the precious metal basket, it does not have a negative correlation with stocks, as gold does. The 10-year data shows it has a low but positive correlation with equities.

“Around 70 per cent of silver’s usage comes from industrial applications. When