Tuesday, January 25, 2022

The new Silver Story

 Silver is coming into the limelight for the past few weeks. Three major fund houses started Silver ETFs after SEBI amended rules to introduce it. So will you make it as a part of your portfolio? 

The prime objective of adding it into your portfolio is to diversify your portfolio and hence it should have lower correlation with other asset classes such as equity and bond. But..

Silver in the last 40 years generated negative annualized return of 1.14% in $ terms. Most of the rise are in lumps and is not constant. Silver has maximum drawdown of 90% in the past and annualized volatility of arounf 25%. What it means? It reflect high risk nature. Its very cyclical in nature and only very experienced investors or traders can understand the nature. So if you don't know, better avoid.

No comments:

Post a Comment

ഇതൊക്കെ വായിച്ചിട്ട് എന്തോ പറയാനുണ്ടെന്ന് തോന്നുന്നല്ലോ?