Silver crosses 1.25 lakh: If you want to invest, invest money in utensils, not jewellery..

The price of silver has crossed Rs 1.25 lakh. If you want to invest, do not invest in jewellery. Instead, invest in utensils. It is cheaper to buy utensils, and you will get a better price when selling.

In the last 5 years, both gold and silver have given excellent returns. While gold has shown more stable returns, silver has given higher but more volatile returns, which is due to its increasing industrial demand in areas like EVs and solar panels. For example, in a report, gold has given a 14% annual return, while silver has given a 16% return per annum.

So, if you are wondering whether investing in gold or silver will be more beneficial? So this question is bound to come to mind. Silver has performed very well in the recent past. In such a situation, if you do not want to invest big in gold, then you can start with silver. But instead of buying silver jewellery, it is better to invest in silverware.

The strategy of investing in silverware, as compared to jewellery, is based on the difference in making charges and resale value. When you buy any silver item, the total price includes the market value of the metal, making charges (labour cost), and goods and services tax (GST). The main difference between jewellery and utensils is in the labour charge.

Making charges: Silver utensils usually have very low or minimal making charges, as the manufacturing process is less complex. On the other hand, silver jewellery has much higher making charges. Their designs often show intricate and delicate workmanship. Making charges for jewellery can range from 10% to 30% of the total price.

Resale value: When you sell utensils, the value of the utensils is almost entirely based on the weight and purity of the silver. You get a price very close to the current market rate of silver, which includes a small cut by the buyer. But on the resale of silver jewellery, you usually lose the entire making charge. The buyer's offer will be based only on the value of the raw silver, resulting in a huge loss of your initial investment.

A simple 100 gram silverware costing ₹13,000 (₹126/gram) may have a making cost of just ₹400. Its resale value will be close to the current market rate. An intricate 100 gram silver necklace costing ₹16,000 may have a making cost of ₹3,000. Its resale value will not include this ₹3,000 and will be based only on the weight of the silver.

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