The metal, often considered gold's poor cousin, which never succeeded in grabbing the attention of retail investors in the past due to stagnant prices, is now being viewed as an emerging investment option soon after it crossed the level of Rs 23,000 per kg in the recent past.
Silver has caught the fancy of youngsters and working women, who are finding it a lucrative investment option.
According to Hiren Chowkshi, proprietor of city-based Hiren Chowkshi jewellers, "When the market was booming, a large number of young investors and women had entered the market. As a result of the economic slowdown, many of these new investors left the market and even now they are not ready to enter again." This category comprised of a large number of retail investors, who started accumulating silver on regular basis after the prices crossed the level of Rs 23,000.
These investors are largely retail purchasers who buy silver bars ranging from 50 to 500 grams depending on the current price of the silver, Chowkshi said. As per an estimate, about 35% of the working women have shown strong faith in silver as an investment option.
The recent hike in silver prices has also attracted youngsters and about 15% of them are now investing their savings in silver.
A majority of customers prefer silver bars and bars designed in the form of currency notes rather than silver coins or silver jewelry as they get almost 95% of the current price at the time of liquidity.
Prominent gold and silver merchant Ashok Chokshi of Chowkshi Bhailal Dahyabhai and Co, said, "Silver is an emerging investment option for those who don't deal in trading of commodities. But at the same time the precious metal has caught the attention of seasoned investors too as prices are much lower compared to gold and they can purchase in large quantities. For these types of investors, the ideal quantity starts from 500 gram silver bar and onwards."
With the hike in silver prices the trend of gifting silver vessels on various occasions is almost over and bars have replaced them.
According to Harshvardhan Chowkshi, president of Shri Chowkshi Mahajan, an Ahmedabad-based organisation of gold traders and jewellers said, those who want to invest their profits after disposing off stocks have started preferring silver as an investment option."
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