List of the Best Silver Stocks in India

Silver has captivated investors with its dual role as a precious metal and an industrial commodity. Interestingly, investment in silver in India has gained traction due to its striking similarities with Indian stocks, especially in terms of volatility. Between 1990 and October 2024, silver share price in India displayed an annual volatility of 26.6%, almost mirroring the 26.8% seen in Indian equities. Despite these price swings, investment in silver in India has delivered a commendable average annual return (CAGR) of 7.6%. Silver company 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.

List of the Best Silver Stocks

Here is a list of the best silver metal stocks, specifically the best silver stocks in India for 2025

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

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!

Top Silver Stocks in India: An Overview

Here is a brief overview of the best silver companies with the top manufacturing stocks in India:

Hindustan Zinc Limited

Hindustan Zinc Limited is one of the largest integrated producers of zinc, lead, and silver in India, renowned for its operational efficiency and strong market presence. The company is poised for an expected revenue growth of 12.99% for the upcoming year, surpassing its 3-year CAGR revenue growth of 7.07%. Additionally, it boasts a robust net profit margin of 25.86%, highlighting its profitability in the metal and mining sector.

Vedanta Limited

Vedanta Limited, a diversified natural resources company, has significant exposure to silver through its mining and refining operations. The company’s financial resilience is evident from its 5-year average debt-to-equity ratio of 118.55%, which is nearly aligned with the industry average of 118.89%. With an expected earnings growth of 201.44% for the next year, a sharp turnaround from its 3-year CAGR earnings decline of -28.51%, Vedanta showcases a strong recovery trajectory. This makes it a promising silver company for those exploring investment in silver in India.

Thanga Mayil Jewellery

Thanga Mayil Jewellery, primarily focused on the gold and jewellery sector, has shown commendable growth in free cash flows, with a 5-year average growth rate of 29.74%, outperforming the industry average of -1.42%. Coupled with an impressive ROE of 27.95%, the company reflects efficient capital utilisation and strong financial performance, making it a notable player in the precious metals space, including silver shares.

Goldiam International

Goldiam International, a leading manufacturer and exporter of diamond jewellery with some exposure to silver, stands out for its disciplined financial management. Its 5-year average debt-to-equity ratio of 1.69% is significantly lower than the industry average of 60.73%, emphasising its low leverage. With a healthy net profit margin of 14.72%, the company continues to deliver solid profitability, supported by its robust business operations. This solidifies its reputation among the top manufacturing stocks in India for investors interested in silver shares.

Note: The data mentioned above was taken from 2nd December 2024.

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 stocks in India.

Physical silver stocks represent an ownership interest in physical silver, while silver mining stocks in India represent ownership in companies that mine, refine, or produce silver. For those asking, ‘is it good to invest in silver?’, understanding the difference between these two stock types is essential.

Why Invest in Silver Stocks?

Here are a few reasons why investing in Silver Stocks is an attractive opportunity.

• Industrial Demand Growth

Silver’s superior electrical conductivity makes it essential in various industries, notably in solar photovoltaic (PV) panels. The global shift towards renewable energy has significantly increased silver demand, with projections indicating a 170% rise by 2030, constituting about 20% of total silver demand. This growing industrial demand underscores why many investors believe it’s good to invest in silver.

• Supply Constraints

The silver market has experienced consecutive years of supply deficits, with demand outpacing supply. Silver reserves in India and worldwide are under strain, leading to higher silver prices. This imbalance can enhance the profitability of silver mining stocks and highlight the importance of investing in top 10 silver brands in India.

• Hedge Against Economic Uncertainty

Silver, like gold, is considered a safe-haven asset. Investing in silver stocks provides a hedge against economic downturns and currency fluctuations, helping to diversify investment portfolios. With the increasing popularity of silver ETFs, investors can explore various avenues for silver investment in India.

• Technological Advancements

Beyond renewable energy, silver is crucial in electronics, medical devices, and 5G technology. As these sectors expand, the demand for silver is expected to grow. This technological evolution underscores the value of silver reserves in India and emphasises why the top 10 silver brands in India are at the forefront of innovation.

• Potential for High Returns

Silver stocks often exhibit higher volatility compared to gold, leading to significant price movements. In bullish markets, this volatility can result in substantial returns for investors. Notably, silver prices have reached their highest levels in over a decade, reflecting strong market interest.

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 silver investment in India include diversifying your portfolio, and avoiding emotional decisions. Monitoring market trends, including updates about silver reserves in India and global demand shifts is also recommended.

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.

By considering these strategies and understanding the role of the top 10 silver brands in India, investors can maximise their returns and minimise risks associated with silver investment in India.

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.

Factors Affecting Silver Stocks

Several factors affect the silver stock price today, 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 price of silver stocks on the NSE is likely to rise.
• Economic Factors: Economic indicators such as inflation and interest rates can also affect the silver share price 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, NSE silver price will rise in the market due to supply chain disruptions. Understanding these dynamics is vital when considering any investments in mineral 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 on the NSE. Analyse 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 leading producers of silver, as these impact the silver share price today.
• 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: Scrutinise 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.  This is especially critical for companies engaged in silver production in India.
• Dividend Yield: Some silver stocks in India may offer dividends. Explore the dividend yield, if any, to understand the potential for additional income from your investment in mineral stocks in India.

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, particularly for companies involved in silver production in India.
• Currency fluctuations and regulatory risks: Changes in tax policies, tariffs, or environmental regulations can impact the silver stock price today, especially for leading producers of silver.

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.

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