Gold and Silver are 2 metals which Indians always prefer. Though Gold was costly people were always buying maybe in small quantity but the Silver was always bought in bulk. Whenever there was festival or marriages happen jn India, people use to gift Gold to selected people whereas Silver used to be given to almost everyone.
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And a lot of people used to buy Silver jewelry as it was little cheap and readily available. People used to have Silver utensils at home and other things. Now with Silver reaching new height people are actually taking more interest in it.
The Gold and Silver ETF is one of the best investment as of now, then you will be purely investing for investment purpose. During Diwali we have to buy some Gold or Silver and we are thinking of buying either of them. But we are more inclined for Silver as it is still cheaper than the Gold.
In the last year alone the Silver has given 60% returns whereas the Nifty has given less than 5%. So by that manner investing in Gold and Silver was a great choice in last one year. And that's where diversification is so great. For example, if you would have invested 70% in Indian Equity, 20% in US and 10% in Gold and Silver, you would have got a good percentage of returns in the last year. And that's where having every asset class in your portfolio makes sense.
I know managing all is little tricky and that's why try to you can create a smallcase which will automatically invests on your behalf using the ETF. And I guess that's a good way to diversify your investments. So are you also taking interest in Silver or are you buying Silver and Gold, do let me know.