Silver outshines gold in returns

Everyone’s talking about gold and its glitter but check the returns silver has Why invest in Gold now?

. Based on Saturday’s closing in the Mumbai bullion market, ready silver (.999) at Rs 23,230 per kg has given returns of 28% this year. In comparison, gold (99.5 purity) has returned 17%. Analysts say silver has the potential to outperform gold and investors should keep their eyes open while parking their money in the precious metals space.

While silver fluctuated in the wide range of Rs 16,400 to Rs 27,000 in 2008, and finally ended the year at levels which were around 10% lower than in 2007, gold has had an unprecedented bull run and finished 2008 with over 20% returns. This at a time when stock markets were down, enhanced the proposition of gold for investors , say market experts.

But commodity gurus like Jim Rogers have been betting on silver for sometime. He recently said if given a choice between the two precious metals, the Singapore-based investor would go for silver. When TOI contacted him on silver’s fortunes , he said, “I own it’’.

People like him, who own silver in India, have seen the metal rise from Rs 18,100 per kg (on December 31, 2008) to Rs 23,320 in close to 50 days in Mumbai bullion market. This is no different from what has happened in other bullion markets like those at Delhi, Chennai , Hyderabad, Indore and Kolkata. Gold, which started the year at which Rs 13,435/gm, closed at Rs 15,745/gm on Saturday , giving close to 17% returns in the same period.

Like gold made all-time high the past week, silver, too, climbed to a five-month high. “If one has Rs 100 to invest in precious metals, he/she could invest Rs 60 in silver and the rest (Rs 40) in gold. It’s a good investment option,’’ Mandar Pote, who tracks bullion at Angel Commodities, said.

At commodity exchanges such as NCDEX and MCX, silver has been the top gainer among commodities with 9-10 % gain this week while gold was the second best giving returns of 7-8 %, data shows. According to investment advisory firm SMC Global, silver contracts for March delivery at MCX are showing an uptrend while the weekly stock position shows rise of 3,649 kg for the week ended February 19.

Source : Economictimes

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