By Deepa Gopalan
ET Intelligence Group

Silver as an investment has potential too, though not as much as gold

Bullion prices have been on the upswing in recent months and have touched new highs. While attention both in India and across the world has been focused on gold, silver hasn't evoked as much interest. But there has been a silent rally brewing in the silver market too.

First, some basic facts. Prices of silver in India are linked to international silver prices, so the rise in local silver prices is clearly the result of international price movements.

Silver is usually at the bottom of the precious metals' chain, after platinum and gold. Experts in the international markets believe that when gold becomes too expensive, demand shifts to silver, driving up the prices. Further, the rising industrial demand for silver worldwide has also fuelled the prices.

For all those looking at this for an investment, what are the various avenues of buying silver? Considering India's fascination for jewellery, this is one of the most preferred choices when buying silver. In forms other than jewellery, silver can be purchased as coins with images of gods embossed on them.

In India, there is a trend to purchase silver articles such as silver utensils or even idols of gods or lamps during festivities such as Diwali or Dashera.