Best Silver Stocks in India

What are Silver Stocks?

Silver stocks include companies that mine, refine, or produce silver. When investors buy silver shares, they gain exposure to the silver market without owning the metal physically. The Indian market offers two types of silver stocks, physical silver and silver mining stocks.

Overview of Top Silver Stocks in India

1. Vedanta Ltd: Vedanta is a diversified natural resources company involved in oil, gas, zinc, aluminium, copper, and iron ore production. It operates globally and plays a key role in India’s mining sector.
2. Hindustan Zinc Ltd: A subsidiary of Vedanta, Hindustan Zinc is India’s largest and the world’s second-largest zinc-lead miner. It also produces silver and focuses on sustainable mining and metal production practices.
3. Goldiam International Ltd: Goldiam designs, manufactures, and exports diamond jewellery, serving major global retailers. Known for conflict-free diamonds and ESG compliance, it has a strong presence in the US market.
4. Thangamayil Jewellery Ltd: Based in Tamil Nadu, Thangamayil Jewellery specialises in gold and diamond retail. It operates multiple showrooms and is known for its traditional designs, catering to the preferences of South Indian consumers.

How to Invest in Silver Stocks?

Here is how you can invest in the best silver stocks:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Conduct thorough research into the top silver stocks in India using Tickertape Stocks Screener. The screener offers over 200 built-in filters, allowing investors to select parameters and generate a list of silver stocks.
3. Place a ‘Buy’ Order on the top silver stocks that align with your investment thesis.

Latest Updates in the Silver Sector

• Record Surge in Silver Prices: Silver futures recently hit all-time highs on the MCX, crossing ₹1,07,000 per kg.
• Rising Global Demand: Increased interest in silver due to its dual role as an industrial metal (used in solar panels, EVs, etc.) and a safe-haven asset during geopolitical uncertainty.
• Heavy Inflows into Silver ETFs: Silver exchange-traded funds saw over 300 tonnes of inflows in June, showing strong investor interest.
• Tight Global Supply: Limited silver supply is helping support high prices.
• Hindustan Zinc’s Exposure to Silver: As the world’s third-largest silver producer, Hindustan Zinc directly benefits from rising silver prices. The company’s stock has gained sharply due to improved earnings potential linked to higher silver prices.
• Broader Boost to Commodity Stocks: Other commodity-related stocks are also gaining from bullish sentiment in precious metals.

Benefits of Investing in Silver Shares

• Portfolio diversification: It is among the most significant advantages, as silver stocks tend to have a low correlation with other assets, such as stocks and bonds. This diversification helps mitigate the overall risk in an investment portfolio.
• Safe asset: Investing in silver shares can also provide protection against inflation and economic downturns, making it a safe-haven asset.
• Capital gains: Investing in the best silver stocks in India can offer the potential for capital gains, as silver share prices tend to appreciate over time.
• Liquidity: Silver shares are highly liquid, providing investors with greater flexibility than physical silver investments.

Risks of Investing in Silver Shares

• Market volatility: It is one of the most significant risks, with silver share prices subject to frequent fluctuations.
• Company-specific risks: Production and management issues can affect the value of silver shares, particularly for silver companies stock involved in silver production in India.
• Currency fluctuations and regulatory risks: Changes in tax policies, tariffs, or environmental regulations can impact silver stocks with dividends India, especially for leading producers of silver.

Factors Affecting Silver Stocks

• Price of silver: Silver stock price is highly correlated with the price of silver, which is influenced by the demand and supply of the metal. For example, if there is an increase in demand for silver, the price of silver stocks for long term investments on the NSE is likely to rise.
• Economic Factors: Economic indicators such as inflation and interest rates can also affect the silver share price on the NSE. This is why investors keen on silver production in India need to track economic data.
• Government policies: Political events and policies, such as trade agreements and tariffs, can also affect the silver share prices. For example, if there are trade tensions between countries, the NSE silver price will rise in the market due to supply chain disruptions. Understanding these dynamics is vital when considering any investments in silver mining stocks in India
• Demand and Supply: Global demand and supply can also affect silver share prices, with increased demand driving prices up and vice versa. For example, if there is an increase in silver production, the price of silver shares may decrease.