Silver Investment in India: Trends and Analysis

Abstract

Silver is one of the most popular precious metals with universal acceptance. Its affordable prices, structural stability, ease of handling, liquidity, high returns on investments, and global acceptability, make it an attractive trading proposition. Throughout history, as compared to any other metal silver has been used as a currency more often. Therefore, the purpose of this study is to analyse the trend in silver trading in Indian stock market. In order to draw the trend, monthly closing spot prices of silver have been taken from April, 2005 to March, 2014. Technique of simple moving averages and annual high and low has been used to draw the trend.  Both the techniques used for the analysis pointed out the bullish trend in silver prices till the mid of 2011. The silver prices have encountered ‘euphoria' many a times since 2011 and a trend reversal could be traced since mid of 2011.