Silver Buying Tips: Planning to Buy 1 Kg Silver? Know When, Where and How to Invest Smartly

Silver Buying Tips: The price of Silver is rapidly increasing. Silver prices are soaring again! On Wednesday, the third trading day of the week, the drop was stopped, and silver futures on MCX jumped by over Rs 11,000 in one go. Still, silver prices are trading significantly below their all-time highs, so if you’re thinking about buying 1 kg of silver and are curious about where, when, and how to do it, this news is for you.

We’ll break down how you can buy 1 kilogram of silver while minimizing losses despite price changes. Using this strategy to purchase silver can be quite profitable.

This approach to buying on MCX, the Multi Commodity Exchange (MCX), lets you buy up to 1 kg of silver at once. However, you need to buy silver futures contracts, not the physical metal. This means you’ll need a trading and demat account, along with activation for commodity trading in the MCX segment. Plus, make sure you have enough margin money in your account.

On MCX, you can buy silver in various amounts under different contracts. For instance, you can get 30 kilograms of silver in the Silver (Main) contract and 5 kilograms in the Silver Mini contract. If you’re looking to buy 1 kilogram of silver, you’ll want to go for the Silver Micro contract. The great thing is, you don’t have to pay the full amount upfront; you only need to cover a margin of 10-20%.

You can purchase silver futures through Zerodha, Angel One, or any other brokerage app. Here, you can place orders by setting the expiry, lot size, and limit. For example, on Wednesday, the price for 1 kg of silver with an expiry date of March 5th on MCX hit Rs 2.64 lakh. To buy future silver at this price, you’ll need to pay a margin of about Rs 26,400 to Rs 52,800 for this contract value. Brokerage fees, exchange costs, and other charges will be automatically deducted from your free balance, separate from the blocked amount, once the order is executed.

Silver ETF

If you’re looking for an easy and smart way to invest, buying a Silver ETF is a great choice besides getting MCX Silver. But remember, to really make it work for you, you should follow a specific strategy. Try the 7, 14, 21, and 28 rule: on these dates each month, invest Rs 5,000 in a Silver ETF. This way, based on current prices, you’ll end up purchasing silver worth Rs 2.40 lakh in a year, which is about 1 kg. The cool part is that this method shields you from price swings, keeping you in the profit zone.

Now, let’s chat about the best way to buy physical silver. You might lean towards silver bars instead of jewelry. But here’s a tip: rather than splurging on 1 kg of silver all at once, consider buying 100 grams each month. If you invest 2.5 lakh rupees now, but experts think the price might drop to 2 lakh rupees, you could face a loss. By buying smaller amounts even when prices dip, you can still gather 1 kg of silver, and when the price goes back up, you’ll see the benefits.