*SEBI Issues Operating Norms For Silver ETFs.*
According to SEBI guidelines, *Silver ETFs* will aim to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error.
These *ETF's schemes* will be benchmarked against the price of silver based on *London Bullion Market Association (LBMA)* Silver daily spot fixing price.
*Roy's Views*
According to me the following factors will drive the *prices of SILVER in near Future.*...
1. *Demand* in the form of silver jewellery and silver coins is an important factor that drives the prices of silver.
2. Silver will play an important role in the rollout of *5G technology,* as the new 5G ecosystem will require semiconductor ICs/chips, cabling, power distribution, IoT devices, MEMS sensors, etc. which requires silver.
3. *Silver will also be a key component for the solar revolution*. (Because of its high conductivity, solar power uses silver to convert sunlight into electricity.)
4. Moreover due to *silver's corrosion resistance and also high conductivity* , it will be of immense use in Electric Vehicles.
(Every electrical connection in electric vehicles such as, battery management systems, infotainment systems, navigation systems, safety features, among others, require silver.)
An investor should note that silver is more *volatile* than Gold, so Invest with a long term view to benefit from the future potential of silver.
Happy Investing 🙂
*Biswajit Roy*
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