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Investing In Silver ETFs? An FAQ

February 07, 2024 12:43 IST

Anamika Pareek answers five most frequently asked questions about investing in silver ETFs

Illustration: Dominic Xavier/

What are Silver ETFs?

Silver ETFs are investment options that invest at least 95 per cent of their net assets in physical pure silver and silver related instruments like futures contracts, exchange traded derivatives. The primary underlying asset in all these instruments should be silver as per the mandate by SEBI.

How does Silver ETF work?

As with other exchange traded funds, the Silver ETF is listed on the stock exchange and traded like shares of companies. The price of each unit of the Silver ETF tracks the silver prices in the open market. Therefore, the NAV of silver ETF changes with changes in the price of silver.

You can get an exposure to the silver market investments without having to own physical silver or get into the hassles of storing it.

Are there any SEBI operating norms for Silver ETFs?

Why invest in a Silver ETF?

How are Silver ETFs taxed?

Silver, a capital asset, is treated as a debt security. Capital gains in silver ETFs, irrespective of holding period, will be added to your income and taxed according to your income tax slab.

How to invest in Silver ETF?

To invest in ETFs, you need to go through the following steps.

Mutual Fund Investments are subject to market risk, read all scheme related documents carefully

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.