What is a Silver ETF?
A Silver ETF tracks the domestic price of physical silver. When you purchase 1 unit of a Silver ETF on your broker platform, the AMC purchases equivalent 99.9% pure physical silver bars and stores them in secure bank vaults. It completely mirrors silver prices minus a tiny expense ratio.
Why Invest in Silver ETFs?
- Zero Making Charges: Unlike jewellery or coins which command upwards of 5-10% making charges which are lost when reselling, ETFs have none.
- Security: No risk of theft or paying for bank lockers since the physical silver is stored digitally in your demat.
- Instant Liquidity: Sell it immediately during stock market hours with a single click at standard market rates without jeweler haggling.