Diversifying portfolio

Silver investors must take note of its industrial use

Investor interest in silver is rising significantly in 2024, with assets under management in silver exchange-traded funds crossing Rs 5,000 crore. The white metal has gained around 16 per cent since January. Silver is often clubbed with gold when it comes to asset allocation but the two precious metals have significantly different profiles while retaining some similarities. Like gold, silver is considered a hedge against inflation and economic uncertainty to a certain extent. Like gold, it is also easily traded and can be liquidated quickly for cash but there are more transparent corporatised mechanisms for selling gold or taking loans