Effects of the Pandemic on Silver

With metal prices souring, Prashant Swaragi, Founder and MD of SR Artefact explains to the readers of Hashtag India, why Silver is a good investment during the pandemic. 

Being a precious metal, silver carries an intrinsic value irrespective of the times. Bullion has always been known to be a safe haven when there is any crisis in the world. With the way, the world economies have doled out money to their citizens with a view and as an attempt to revive the economies, most currencies and economies show weakness. But as we see it, silver and gold have gone up substantially as compared to the pre-pandemic levels. This is because investors and hedge funds all over the world do not trust holding assets such as stocks and bonds in such extreme situations. But then comes a question of whether one should buy gold or silver?  

The most important aspect of buying any silverware is to confirm the purity of the selected item. This is important not just for value but also for final finish of the product.

For centuries together there has been a benchmark to predict price movements in gold and silver. There is a ratio between gold and silver prices. The gold and silver price ratio is currently in the range of 1:85, which means that one can buy 85 kgs of silver in the price of 1 kg of gold. The all-time average for this ratio is in the range of 1:70. However, recently the ratio went as high as 1:110. This is when silver shot up rapidly and in a matter of a few days the prices went up almost 70/80%. This only shows that the upside in silver in the near to long-term will be much more than gold.

Due to the pandemic, industrial activities had gone down but as we get back to business, the use of silver will increase and so will its demand.

More than 50% of silver is used in industrial activities. Due to the pandemic, industrial activities had gone down but as we get back to business, the use of silver will increase and so will its demand. Silver mining has also been very badly affected, thus there is a possibility of a demand-supply gap. However in the very short term, we had major international and geo-political occurrences taking place. This uncertainty will make the price very volatile and it could go down and up violently with a possibility of a little fall in the very short-term, but silver is on a huge upswing in the long run.  

Tips for buying expensive silverware online:

1. The most important aspect of buying any silverware is to confirm the purity of the selected item. This is important not just for value but also for final finish of the product. In India, it’s hard to find good quality sterling standard (925) silverware. Thus one should be extremely careful of this aspect when buying silverware online. 

2. One must understand the dimensions and contours of the article under consideration before making a selection for silverware online. Imagery can be very misleading especially with silver being such a reflective metal. 
3. One should also make note of the polish and finish on the item. A very high polish item can scratch in transit and show blemishes when it is received.
4. Since silver is a very soft metal, it is likely to get damaged during the process of transportation. One must ensure that it is packed well and the vendor has a damaged good return policy.