Silver is a precious metal that has been a popular investment choice for centuries. In recent years, silver stocks have gained popularity among investors due to their potential for capital gains and portfolio diversification. In this blog, we will explore what silver shares are, the factors affecting their price, and how to invest in them.
What are Silver Stocks?
Silver stocks comprise companies that mine, refine, or produce silver. Investing in silver shares allows investors to gain exposure to the silver market without physically owning the metal.There are two types of silver stocks available in the market: physical silver and silver mining.
Physical silver stocks represent an ownership interest in physical silver, while silver mining stocks India represent ownership in companies that silver mines in India, refine, or produce silver.
List of the Best Silver Stocks
Here is a list of the best metal stocks, specifically the best silver stocks in India in 2024:
|Market Cap (in Cr)
|Hindustan Zinc Ltd
|Vedanta Resources Ltd
|Thanga Mayil Jewellery Ltd
|Goldiam International Ltd
Note: The data in the top silver metal stocks list is from 24th January 2024. However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!
Why invest in Silver Stocks?
Here are a few reasons why investing in Silver Stocks is an attractive opportunity.
Current Stock Market Highs:
Global stock markets currently enjoy record highs, thanks to reduced economic tensions and political stability. However, economic cycles suggest potential crises in the future due to geopolitical conflicts or debt-related issues. During such times, the bullion market typically attracts significant investments, resulting in substantial gains for gold and silver prices. It’s important to keep a close eye on silver rates, as silver prices often rise when silver stock markets decline.
Silver’s Recovery and Investment Appeal:
Silver is showing signs of recovery from recent lows in the market, making it a favorable investment option. The upward trend appears more promising now, with limited downside potential based on recent market behavior. Regularly monitoring the silver price today is a prudent step for investors considering silver.
Diverse Investment Options:
Silver investment offers various forms to suit your investment objectives. Electronic silver trading, while not a direct investment in physical metal, enables you to hold contracts for extended periods or roll over to newer contracts upon expiry, irrespective of market rates. This flexibility provides an adaptable investment approach, especially for those who prefer not to hold physical silver.
Investors should always be mindful about their investment goals and risk appetite before purchasing any stocks, thorough research of the market conditions and stock performance would always help them gain the financial freedom.
Top Silver Stocks in India: An Overview
Here is a brief overview of the best Silver companies with the top metal stocks in India:
Hindustan Zinc Ltd
Hindustan Zinc Limited (HZL) is a metal sector stocks, which is engaged in the mining and smelting of zinc, lead and silver metal in India. According to NSE data, Hindustan Zinc traded 1 share in the last transaction. Hindustan Zinc Ltd is one of the biggest silver producer in India. Over the past year, Hindustan Zinc’s share price reached a 1-year high of 383.00 and a 1-year low of 262.65.
Vedanta Resources Ltd
Vedanta Limited is a global diversified natural resource company operating across segments which are Copper; Aluminium; Iron Ore; Power; Zinc, Lead and Silver mine; Oil and Gas, and Others. According to NSE data, Vedanta traded 5 shares in the last transaction. Over the past year, Vedanta’s share price reached a 1-year high of 340.75 and a 1-year low of 231.60. It is one of the highly regarded metal stocks India.
Thanga Mayil Jewellery Ltd
Thangamayil Jewellery Limited is a jewelry company, which is involved in the gold and silver, and precious metals. According to NSE data, Thangamayil Jewellery traded 1 share in the last transaction. Over the past year, Thangamayil Jewellery’s share price reached a 1-year high of 1443.65 and a 1-year low of 472.08. It is one of the top silver metal shares in India in 2024.
Goldiam International Ltd
Goldiam International generated Rs. 566.32 Cr. in operating revenue over the past year, showing a concerning annual revenue decline of -22%. While the pre-tax margin stands at an impressive 22%, the return on equity (ROE) is at a commendable 14%, indicating areas for improvement in the overall financial performance. It is one of the best mining stocks in India.
Let us now find out how to invest in silver in Indian stock markets.
How to Invest in Silver Stocks?
Investing in silver shares is relatively easy, with several brokerage accounts and investment platforms available to investors. When choosing the right investment option, investors should consider their investment objectives, risk tolerance, and investment horizon. Some tips for investing in silver shares include diversifying your portfolio, monitoring market trends and news, and avoiding emotional decisions.
One can buy top silver shares in India individually or by buying mutual funds or exchange-traded funds(ETFs) that invest in silver.
Funds and ETFs may occasionally own a range of equities and asset types, including silver stocks. Other times, the funds or ETFs may only invest in silver shares.
Investing in silver stocks with smallcase
You can also invest in a basket of silver stocks via smallcase. Simply go to smallcase.com or the smallcase app, and login via your phone number. Then, go to ‘Discover‘ and enter ‘silver’ in the search bar and hit enter. You’ll find an array of stock portfolios that have silver stocks. You can filter the choices based on minimum investment amount, volatility, or the theme of the smallcase. Just pick the one that fits your investment criterion.
Make sure that you do your diligent research before picking the right stock, keeping in mind your long-term investment goals and risk appetite.
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
- They’re created and managed by SEBI-registered experts
- smallcase.com offers over 200+ stock portfolios, created by 180+ managers
- Some of the popular smallcases among new investors are as follows:
Disclosures for aforementioned smallcases
Factors Affecting Silver Stocks
Several factors affect the silver stock price, including silver market trends, economic indicators, political events and policies, and global demand and supply.
- 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 silver share price is likely to rise.
- Economic Factors: Economic indicators such as inflation and interest rates can also affect the silver share price NSE.
- 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, NSE silver price will rise in the market due to supply chain disruptions, becoming a potential risk factor for silver related 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.
Features of Silver Stocks in India
When exploring silver stocks in India, understanding their key features is crucial for informed decision-making.
- Market Performance: Monitor the historical and current market performance of silver stocks. Analyze trends, fluctuations, and factors influencing their value, providing a comprehensive view of their stability.
- Mining Operations: Investigate the mining operations associated with silver stocks. Assess the scale, efficiency, and geographical locations of mines contributing to the overall supply, impacting stock performance.
- Global Silver Demand: Consider the global demand for silver as it directly influences the market dynamics. Factors such as industrial applications, technological advancements, and macroeconomic trends can significantly affect silver stock values.
- Company Financials: Scrutinize the financial health of companies offering silver stocks. Evaluate factors like revenue, profit margins, and debt levels to gauge the company’s stability and ability to weather market uncertainties.
- Dividend Yield: Some silver stocks may offer dividends. Explore the dividend yield, if any, to understand the potential for additional income from your investment.
Risks of Investing in Silver Shares
Like any investment, investing in silver shares carries some risks like:
- 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.
- Currency fluctuations and regulatory risks: changes in tax policies or environmental regulations, can impact silver stock prices.
Advantages of Investing in Silver Shares
The advantages of investing in silver shares include the potential for capital gains, portfolio diversification, and higher liquidity compared to physical silver investments. However, the disadvantages include market volatility and company-specific risks.
- Portfolio diversification: It is among the most significant advantages, as silver shares 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 silver shares 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.
To Wrap It Up…
Investing in silver stocks is a viable investment option that provides several benefits. By considering the above factors and investing wisely, investors can achieve their investment goals and reap the rewards of investing in silver shares.
Here are the best Silver Stocks to invest in India:
1. Hindustan Zinc Ltd
2. Vedanta Resources Ltd
3. Thanga Mayil Jewellery Ltd
Note: This list is for educational purpose only and not recommendatory.
You can invest in a basket of silver stocks via smallcase. Simply go to smallcase.com or the smallcase app, and login via your phone number. Then, go to ‘Discover‘ and enter ‘silver’ in the search bar and hit enter. You’ll find an array of stock portfolios that have silver stocks.
Silver mining stocks in India prices have risen by 9.5% in 2023, gaining momentum since the beginning of the year. The surge in silver mining in India and silver investing has also been notable, to the extent that some media outlets have labeled silver as the “new gold for your portfolio.” However, it’s important to do your research or consult a financial advisor before investing.
A useful guideline is to purchase silver when you’re investing during prosperous times. It’s a moderately predictable speculative asset with the potential to generate substantial returns.
Investing in silver shares can offer the potential for capital gains, as silver share prices tend to appreciate over time.
Discover Other Collections:
Keep yourself informed and up-to-date on a variety of thematic sectors by reading the articles below: