What Makes Silver a Great Investment Choice for Dhanteras?

Dhanteras, a day deeply rooted festival in Indian tradition, holds a special place in the hearts of millions. It is a time of the year when families come together to celebrate prosperity, wealth, and good fortune. The age-old custom of purchasing precious metals on Dhanteras has been passed down through generations, symbolising a belief in the power of investments that endure through time. 

Among the plethora of options available, silver jewellery stands out as a magnificent choice for investment. Silver, often referred to as the "poor man's gold," is considered an excellent investment option due to its unique properties and timeless appeal.  

In this blog, let's delve into the reasons that make silver an attractive investment choice this Dhanteras. Also, we will cover the most profitable ways to invest in silver (Chandi), the factors influencing silver price today, and much more. 

Significance of Celebrating Dhanteras

Before diving into the details of why silver is a great investment for Dhanteras, let's take a moment to understand why we celebrate Dhanteras.

Dhanteras is a day filled with tradition and meaning. It falls on the thirteenth day of the lunar calendar and marks the beginning of the five-day Diwali festival. "Dhan" means wealth, and "Teras" means the thirteenth day. So, this day is all about celebrating and welcoming wealth and prosperity into our lives.

On Dhanteras, people clean their homes, make colorful rangoli, and light lamps to remove darkness and negativity. But one of the most important customs of Dhanteras is buying precious things like gold and silver. The belief is that purchasing silver on this day brings good luck and wealth into our lives. It's a way of saving for the future and ensuring financial security

The Story of Buying Silver on Dhanteras

Do you know the story behind why it’s considered auspicious to buy silver on Dhanteras? If not, then this section has got you covered!

A long time ago, there was a young king named Hima who had just gotten married. But there was a prediction that the king would pass away on the fourth day of his marriage. This worried the newlywed wife.

To protect her husband, the clever wife came up with a plan. She gathered all her gold and silver jewellery, including lots of gold and silver coins, and placed them in a big pile at the entrance of their bedroom. She then started singing songs and telling stories to keep the king awake.

The next day, the God of Death, Yama, came to take the king. But when Yama saw the dazzling gold and silver, he was so amazed that he couldn't enter the room. Instead, he climbed on top of the heap of precious metals and sat there, listening to the beautiful songs and stories.

As the night passed, Yama found himself so captivated by the music that he quietly left without taking the king's life. The wife's plan had worked!

Ever since that day, people have bought silver and other valuable things on Dhanteras to keep evil and death away. It's considered a lucky tradition that brings prosperity and safeguards our loved ones. 

Why Investing in Silver is a Good Choice this Dhanteras?

Here are some benefits of silver investment on Dhanteras:

• Auspiciousness: Dhanteras is traditionally associated with wealth and prosperity. Investing in silver on this day is believed to bring good luck and financial success, as it is seen as a way to honor the goddess of wealth, Lakshmi.
• Investment: Silver is a valuable and tangible asset. Investing in silver coins and jewellery on Dhanteras can be a way to diversify your investment portfolio and protect your wealth against economic uncertainties.
• Hedge Against Inflation: Precious metals like silver often act as a hedge against inflation. When the value of currency decreases due to inflation, the value of silver tends to rise, preserving your purchasing power.
• Jewellery and Ornaments: Silver jewellery is a popular choice, especially for those who prefer a more affordable option than gold. Silver ornaments and jewellery can be stylish and durable, making them a good choice for personal adornment.
• Wealth Preservation: Silver can act as a store of value, helping you preserve your wealth over time. It can be a way to pass down assets to future generations.
• Portability: Silver is more affordable and easier to purchase in smaller quantities compared to gold, making it accessible to a wider range of individuals.
• Liquidity: Silver is a highly liquid asset, meaning it can be easily bought or sold in the market when needed.

Most Profitable Way to Invest in Silver

Some of the most profitable ways to invest in silver are as follows:

• Physical Silver

You can buy physical silver in the form of silver bars, silver coins, or silver jewellery from authorised dealers or jewellers. While this allows you to possess tangible assets, it may involve making charges, storage costs, and concerns about authenticity. 

• Silver ETFs (Exchange-Traded Funds)

Investing in silver ETFs is a convenient and cost-effective way to gain exposure to the silver market. Silver ETFs trade on stock exchanges just like stocks and track the price of silver. 

• Silver Mutual Funds

Silver mutual funds pool investors' money to invest in silver-related assets such as silver ETFs, mining companies, or silver derivatives. While they provide diversification, they may come with management fees. 

• Silver Futures

Trading in silver futures on commodity exchanges can offer substantial profits, but it is a high-risk strategy. It's more suitable for experienced traders due to the leveraged nature of these instruments. 

• Silver Mining Stocks

Investing in publicly traded silver mining companies can be profitable if the price of silver rises. Profits are linked to the company's performance and silver production. However, mining stocks can be more volatile than the actual metal's price.

• Silver Sovereign Bonds

The Indian government sometimes issues sovereign bonds with an option to subscribe in silver instead of cash. These bonds offer interest and may appreciate in value if the price of silver rises.

• Silver Jewellery

While primarily seen as ornamental, high-quality silver jewellery can be appreciated over time, offering both aesthetic value and potential returns.

Factors Affecting Silver Price in India

Silver price today is influenced by various factors, and its value can fluctuate over time. Some of the key factors that affect the chandi price today are as follows:

• Supply and Demand: The basic principle of supply and demand plays a significant role in determining the price of silver. When the demand for silver exceeds its supply, prices tend to rise, and vice versa.
• Global Economic Conditions: The state of the global economy can impact silver prices. Economic uncertainty, inflation, and financial crises often lead to increased demand for safe-haven assets like silver, causing prices to rise.
• Geopolitical Events: Geopolitical tensions, conflicts, and global events can create uncertainty and drive investors towards safe-haven assets like silver, leading to price increases.
• Industrial Demand: Silver has numerous industrial applications, including electronics, photography, and healthcare. Changes in industrial demand can influence silver prices. Strong demand from industries may boost prices, while a slowdown in industrial activity can have the opposite effect.
• Currency Movements: The price of silver is often inversely related to the strength of the U.S. dollar. When the dollar weakens, silver prices tend to rise because it becomes cheaper for holders of other currencies. Conversely, a strong dollar can put downward pressure on silver prices.
• Monetary Policy: The actions of Central Banks, such as interest rate changes and monetary policy decisions, can affect the price of silver. Lower interest rates and expansionary monetary policies tend to support higher silver prices.
• Government Policies and Regulations: Changes in government policies related to taxation, trade, or mining regulations can impact silver prices.
• Exchange Rates and Trade: International trade and exchange rates can influence the flow of silver to and from different countries, affecting supply and demand dynamics, and this ultimately affects the prices of silver.

Tips for Buying Silver Jewellery this Dhanteras

Following are the tips that you must keep in mind when buying Silver Jewellery this Dhanteras:

• Always buy silver from reputable jewellers to ensure authenticity and purity.
• Check for hallmarks and certifications to guarantee quality.
• Consider your budget and choose a design that suits your style.
• Inspect for craftsmanship and durability in the pieces.
• Don’t forget to keep storage and maintenance in mind to preserve your silver jewellery.
• Always compare prices and negotiate if buying silver jewellery from local stores.
• Consider the resale value, as silver jewellery can be an investment.

Final Words

While gold remains a popular and cherished choice for investments during the festive season, silver as an investment also shines brightly as a wise and versatile option. Its affordability, rich tradition, and unique characteristics make it a compelling choice for those looking to embrace prosperity and safeguard their wealth. So, as you celebrate Dhanteras, consider the timeless appeal of silver, and may your investments bring you not only financial well-being but also the blessings of happiness, and abundance.

InsuranceDekho wishes you a Safe and Happy Dhanteras and Diwali.