Business | Investment
Ways to invest in the metal
A mix of investments is the way to go when it comes to silver
- Gulf News
- Published: 00:00 February 4, 2012
- Physical possession in the form of silver coins and bars, but one has to be aware of its storage and corrosion.
- Exchange traded funds (ETFs) are also popular among investors. However, tracking of spot silver price from some silver ETFs is less than desirable. Also, many silver funds are linked to silver mining firms and the returns are not as strong as silver's move.
- Silver trading accounts, including spread bets and futures contracts through registered brokers, do track price movements at all times but that should be something to consider only for the savvy and experienced investor, due to the incredible volatility of silver. This is not recommended for the ordinary investor who is looking to diversify his portfolio. In Dubai, futures contracts on the Dubai Gold and Commodities Exchange (DGCX) are highly liquid and at the end of each contract period, the product can be rolled over at a minimal cost. Investing in silver through futures and options also provides high leverage and helps to take advantage of the short term and medium term price movement.
- Sources: Gerhard Schubert, Emirates NBD and Pradeep Unni, Richcomm Global
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