Page 42 - Bullion World Volume 02 Issue 10 October 2022

Bullion World | Volume 2 | Issue 10 | October 2022

‘There is no risk in silver ETFs

other than price volatility’

In an interview, Pratik Tibrewal, Fund Benefits of holding silver in electronic
Manager- Commodities, Axis Mutual form
Fund talks about prospects of silver, Investors can make fractional
benefits of holding it through ETFs investment in silver in electronic form
and FOFs and risk associated with i.e. if the price of silver is Rs 50,000
it. Let’s look at some key highlights kg, they can buy one unit at a cost behalf. So, it doesn’t make a lot of
from the video. of Rs 50. Also, there is no risk of difference in terms of the return.
storage and theft. Further, there is no And the underlying is going to be
Prospects of silver stress about purity. priced at the London Bullion Market
Not just in jewelry, silver has a host Association rate, which is famously
of industrial uses like in computers Another key benefit of holding known as the LBM spot.
and mobile phones, mirrors and silver in electronic form is that it is
other electronics. Also, EV vehicles exempted from wealth tax. Risk associated with silver ETFs
have increased usage of silver in There is no risk with the silver ETF
their engine. Silver is also rich in Silver ETFs and FOFs other than price volatility. Remember,
anti-bacterial properties and hence, Investors require demat account price volatility affects all asset
it is used in the medical industry to invest in silver ETF. However, classes. Since we hold the silver ETF
very extensively. In addition, silver investors can buy silver ETFs without in electronic form, there is no risk of
has high thermal conductivity and demat account in FoF structure. fire, theft and purity.
reflective strength, which makes it Both the funds are eventually holding
ideal for solar panels. silver as a commodity on your Source: https://cafemutual.com

Why should you consider

adding Gold & Silver in your across have resorted to rate hikes

portfolio? and neutral system liquidity to
tackle the runaway inflation. Gold is
a hedge against inflation, protects
Gold is extensively used in jewelry and is often considered a ‘safe haven’, against the erosion of wealth, and
as it tends to do well during market uncertainty. In contrast silver has wide acts as a store of value in such
industrial applications and generally does well during business recovery times. Even the world’s elite turn
periods. Exposure to both metals helps portfolios do well in both turbulent to precious metals to protect their
times and during recovery periods. Investors who want to all both silver and fortunes, as both metals never lose
gold to their portfolio can choose this scheme. their value. Apart from investment,
jewelry & silverware, Silver has major
“With an objective to bring new investment opportunities, Motilal Oswal industrial applications including
AMC has launched the Gold and Silver ETFs FOFs. This offers a huge green technologies,” says Navin
diversification mix as both Gold and Silver have a low correlation to equities Agarwal, MD & CEO, Motilal Oswal
and thus act as a good diversifier. Both metals offer good downside Asset Management Company.
protection and tend to outperform in bear markets. While Silver tends to
outperform when the market is recovering from a bear phase. With this Agarwal added, “We are at an
scheme, the investors will be able to mitigate risks against the market interesting juncture as the advanced
volatility while enjoying the portable wealth and rising economic values,” said economies of the US and Europe are
Pratik Oswal, President - Passive Business, Motilal Oswal Asset Management at risk of slipping into a recession
Company. whereas India is showing very
growth prospects.”
“Gold and silver have been preferred assets for Indian households for ages.
These precious metals had been acquired and kept in the physical forms. Source: https://economictimes.
However, we are witnessing high inflation around the world. Central banks indiatimes.com

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