DSP Investment Managers announced the launch of DSP Silver ETF which will invest in physical silver and silver related instruments. This new ETF offers investors an easier way to buy or sell silver compared to the physical version with the freedom to trade easily. Demand for silver is higher than supply and mainly driven by industrial, investment and jewellery. Supply (997 million ounces) of silver depends on limited mine production capacities but demand (1049 million ounces) may increase further due to its application in new age tech, among many other use cases like photovoltaic cells (solar) and as the main electrical connector material in battery packs and control modules of Electric Vehicles.
It aims to hedge against a standard ‘equity-debt portfolio’ due to its low correlation with equity and negative correlation with debt. It can also potentially act as leverage against the depreciating rupee. Silver in INR terms has outperformed Silver in USD due to currency depreciation. This is because silver prices in India are derived from international silver prices and then converted after adding currency effects and other costs of landing. Investing in silver is a high-risk strategy and is more suited for experienced investors who understand precious metals or commodities cycles. The New Fund Offer opens for subscription on 1st August, 2022 and closes on August 12th, 2022.
Anil Ghelani, CFA, Head – Passive Investments & Products, DSP Investment Managers, said, “An investment in DSP Silver ETF is suitable for investors looking to diversify, or for experienced investors or those with access to expert financial advice.”
