Best Silver Stocks in India

  • 10 May 2024
  • Read 13 mins read

Silver is a precious steel that has been priced for its rarity for centuries. Companies engaged in the mining, refining, or producing of silver are the companies that are included in silver stocks. In India, investing in silver shares has gained demand among buyers in search of portfolio diversification. Various factors, such as worldwide demand for silver, supply, monetary situations, and business usage, influence silver share prices in India. These shares constitute possession in businesses worried about silver mining or buying and selling. 

Finding and Investing in the best silver share price in India may be an appealing alternative for those trying to capitalise on the growing demand of this sector. This blog will cover some of the best silver stocks in India and further address their importance, reasons to invest, factors affecting silver stocks, etc.

What are Silver Stocks?

Silver shares allow you to invest in companies that are involved with silver. There are two main types: physical silver shares, which represent owning part of actual silver, and Silver mining shares, which give you ownership in companies that mine, refine, and sell silver. Silver share price in India can influence supply, demand, and economic factors impacting the silver market. Investing in silver shares gives exposure to potential capital gains in silver prices, but it also involves risks if prices decline.  

To reduce risk, investors must carefully research companies before buying silver mining or physical silver shares. With some diligence, Investing in the best silver stocks in India can be a good opportunity for portfolio diversification.

 

List of the Best Silver Stocks

The following is the breakdown of the best silver stocks in India, along with the share price and market capitalisation:

Company

Share Price (in INR)

Market Capitalisation (in Billion INR)

Goldiam International Ltd

177

18.92

Vedanta Resources Ltd

396.55

1415.51

Hindustan Zinc Ltd

422

1780

National Mineral Development Corporation (NMDC)

257.75

755.7

Thanga Mayil Jewellery Ltd

1,319

36.19

Disclaimer: This list of silver stocks in India contains data updated as of 25th April 2024. However, it's important to conduct detailed research before making any investment decisions in these stocks.

Top Silver Stocks in India: An Overview

The following is an overview of the above-mentioned silver related stocks in India. This overview includes an analysis of the company’s establishment, achievements, performance, and more.

  • Goldiam International Ltd

    Goldiam International Ltd. was established on October 10, 1986. As of the latest report, the company’s operating revenue is INR 100 cr to 500 cr. The market demand for Goldiam jewellery is increasing, particularly in major Indian cities. The company’s plans include expanding its product line and using the latest technologies in production and operations.
  • Vedanta Resources Ltd

    Vedanta Resources Ltd, founded in 1976, is experiencing growth, especially in its zinc-lead-silver, oil and gas, and power sectors. Demand for Vedanta’s diverse resources remains high due to their wide range of industrial applications. Vedanta’s future plans include a commitment to reducing carbon emissions to zero by 2050 or sooner. According to GlobalData, Vedanta’s performance is marked by its strategic asset base across multiple countries.
  • Hindustan Zinc Ltd

    Hindustan Zinc Ltd. was incorporated in 1966. The company’s net income for 2024 is reported at ₹7,759 crore. Present growth is evident, with Hindustan Zinc being the world’s largest lead-zinc miner. Given their industrial uses, the demand for zinc, lead, and silver continues to be strong. Future plans include enhancing mining operations and sustainability initiatives. Performance-wise, Hindustan Zinc gives significant revenue and operating income for 2024.
  • National Mineral Development Corporation (NMDC)

    National Mineral Development Corporation (NMDC) was founded in 1958. It is witnessing growth with its extensive iron ore production. There’s a consistent demand for NMDC’s iron ore and silver also, which is essential for steel manufacturing. NMDC’s future plans involve expanding its mining capacity and diversifying into other minerals.
  • Thanga Mayil Jewellery Ltd

    Thanga Mayil Jewellery Ltd. began on March 24, 2000. For the fiscal year ending March 2023, the company's operating revenues exceeded INR 500 cr (approx), with an EBITDA increase of 77.41%. Growth is present with an expansion of retail stores and product offerings. Demand for Thanga Mayil’s jewellery remains high, especially in South India.

How to Invest in Silver Stocks?

Investing in silver shares is easy. You can open a Demat account to buy individual silver company stocks or invest in mutual funds and ETFs focused on silver mining and refining. Some funds deal only in silver stocks, while others have a mix of silver shares plus other assets. 

When investing, investors should know their financial goals. It's good to diversify across several silver shares or price ranges, which will spread out your risk. Also, it is advised to watch market tendencies and news about silver prices in India. That will help them know the correct times to buy or sell silver shares in India. With right-making plans, silver stocks can be an excellent investment option.

Investing in Silver Stocks with BlinkX

Here is how you can investing in silver stocks with BlinkX:

  • Research: Research silver stocks to understand the market trends, company performance, and potential growth prospects. Utilise BlinkX, a reliable source of information, to gather data on various silver mining companies and their stocks.

  • Analyse:

    Use BlinkX's analytical tools to assess the financial health, management efficiency, and competitive positioning of different silver mining companies. Pay attention to factors like production costs, reserves, and exploration potential to make informed investment decisions.
  • Diversify:

    Consider diversifying your investment portfolio by investing in multiple silver stocks. This helps spread risk and maximise potential returns, as the performance of individual stocks may vary.
  • Monitor:

    Use BlinkX's real-time monitoring features to monitor market developments, silver prices, and company news in real time. Stay informed about macroeconomic factors, geopolitical events, and industry-specific news that could impact silver prices and stock performance.
  • Review and Adjust:

    Regularly review your investment strategy and portfolio performance with BlinkX's customisable tracking tools. Adjust your holdings based on changes in market conditions, company fundamentals, and your investment goals to optimise returns and manage risk effectively.

Factors Affecting Silver Stocks

The price of silver is a major factor influencing silver share prices in India. When silver prices go up due to increased demand, silver mining and refining stocks tend to rise too. The following are some factors that affect silver stocks:

  • Economic conditions like inflation and interest rates can impact silver stocks. High inflation often drives investors to silver as a hedge, boosting share prices. Rising interest rates can hurt silver equities by increasing business costs. 
  • Government policies and geopolitical events also affect the silver market. For example, trade disputes disrupting supply chains may restrict silver supply, causing prices and related stocks to rise. 
  • You'll need to monitor silver price trends, read economic forecasts, follow relevant political news, and analyse demand drivers before investing capital in Indian silver shares. 
  • While no stock is risk-free, understanding these major factors gives you insight into attractive entry and exit points for silver equities matching your goals and risk tolerance.

Features of Silver Stocks in India

Analysing the best silver stocks in India is important for investors looking to expose themselves to the silver stocks in India. The following are several features listed of the silver stocks in India:

  • Stock Price Performance:

    Analyse the historical and current stock prices of silver companies. Understand the factors that affect commodity price fluctuations, such as global demand, mining activity and market trends.
  • Mining operations:

    Determine the size, efficiency and locations of the company’s silver mines. Mining efficiency can have a positive impact on stock performance.
  • Dividend yield:

    Some silver companies issue dividends to shareholders. If applicable, look at the dividend yield, as it can provide additional income.
  • Financial strength:

    Examine the financial health of the company, including revenue, profitability and debt levels. Companies with strong cash flows are better positioned to withstand market uncertainty.
  • Global Demand for Silver:

    Consider the global demand for silver driven by industrial infrastructure, technological progress, and economic factors. Higher demand for silver prices can cause silver prices to rise and potentially increase stock prices.

Risks & Advantages of Investing in Silver Shares

The following is the breakdown of some risks and advantages of investing in silver stocks in India:

Risks of Silver SharesAdvantages of Silver Shares
Silver share price in India can fluctuate frequently, which impacts the overall silver stock market.Silver is viewed as a safe investment option against inflation and economic ups and downs.
Production problems or management issues can affect a silver company's value.The value of silver shares can increase over time.
Changes in taxes or laws can affect silver companies.Silver shares are easy to buy and sell, which provides high liquidity in this sector.

Conclusion

Purchasing the top silver stocks in India can be a profitable venture, but it calls for thorough research and diversification. Various factors, such as firm performance, economic conditions, and worldwide demand, influence silver share prices. Potential benefits include capital appreciation, while risks like manufacturing problems and price volatility also exist. Prior to purchasing silver shares, investors should investigate the mining operations, financial stability, and dividend yields. By offering simple trading, research resources, and screening features, a stock market app such as BlinkX streamlines the process. Even beginner investors can add strategically to their portfolios by learning about market dynamics and utilising an easy-to-use investment platform to add fundamentally sound silver equities. 

FAQs on Silver Stocks

You can invest in silver stocks in India by opening a Demat account, researching silver companies, and purchasing their shares through a stock trading platform like BlinkX.

Silver stock prices are influenced by global supply and demand, economic conditions, government policies, geopolitical events, and the overall performance of silver mining and refining companies.

Silver stocks can be a good investment option for portfolio diversification and potential capital gains, but they also carry risks, such as price volatility and company-specific risks.

To reduce the risks of investing in silver stocks, you should diversify your portfolio, conduct thorough research, monitor market trends, and consider investing in silver ETFs or mutual funds.

The advantages of investing in silver stocks include potential capital appreciation, hedging against inflation, high liquidity, and the ability to participate in the silver market without physically holding the metal.

To research and analyse silver stocks, you should examine factors such as stock price performance, mining operations, dividend yield, financial strength, and global demand for silver.