How To Invest In Silver?  

When it comes to precious metal investments, silver doesn’t always grab headlines like gold. 

But the numbers tell an entirely different story. 

In 2025, silver surged approximately 168%, outperforming gold and even all other financial instruments. (Source: MCX Spot Silver Price)

In the past five years, Silver has delivered nearly 290% returns. (Source: MCX)

Industrial demand for silver reached record levels of ~680.5 million ounces in 2024 (Source: The Silver Institute). 

All this data made silver, the “second metal”, the most talked-about and first-choice investment asset going into 2026.

With momentum, demand, and returns aligning, the question arises: What are the ways to invest in silver? 

In this blog, we will discuss the different silver investment methods by which you can make this metal a part of your portfolio.

Different Ways of Silver Investment 

Silver Fund of Funds or FoFs [SEBI Regulated]

Silver FoFs (Fund of Funds) are mutual fund schemes that invest in underlying silver ETFs. These types of MFs give investors exposure to holding physical silver without actually buying, storing, or managing it. 

However, the exposure is not given directly, because Silver FoFs

• Does not buy physical silver directly. 
• They invest in units of a silver ETF of the same fund house; for instance, Axis Silver FoF invests in Axis Silver ETF. That’s the reason why they are called FoFs. 
• Then, the silver ETF generates returns that are in line with the performance of physical silver in domestic prices

You can invest in silver FoFs for as low as ₹100 via SIP (Systematic Investment Plan) or lump sum. 

Silver ETFs [SEBI Regulated]

Silver ETFs (Exchange Traded Funds) are SEBI-regulated mutual fund schemes that invest in physical silver bullion of 99.9% purity. These aim to track the domestic price of silver (LBMA Silver daily spot fixing price). 

These ETFs are:

• Backed by physical silver of 99.9% purity, as prescribed by SEBI
  
  
• Stored in secured vaults with SEBI-approved custodians
  
  
• Traded on Indian stock exchanges (NSE/BSE) 

A demat account is required to invest in ETFs, as they are tradable market-linked instruments. 

Disclaimer: The returns are subject to tracking error. 

Digital Silver 

Digital Silver is a way to buy silver online in electronic form, where each unit purchased is backed by physical silver of high purity (generally 99.9%) and stored on the investor’s behalf in secure vaults by the service provider.

In India, digital silver is not uniformly regulated and is offered by private platforms (such as Paytm Money and Gullak) in partnership with bullion providers.

Physical Silver 

Physical silver is the traditional form of silver investment. It refers to silver purchased in tangible form, such as coins, bars, utensils, jewellery, or artefacts, which the investor owns and stores directly. 

To buy physical silver, you have to pay making charges and GST; it also requires self-storage, which increases the risk of theft or burglary. 

Taxation Structure