Silver prices hit a record high in India, surpassing Rs 82,000 per kilogram for the first time. The metal has given 13% returns in the last three months. The surge could be driven by multiple factors, including increased global demand, investment appeal and fluctuations in the exchange rate.
The metal is used across industries like electronics, solar power, and healthcare. Apart from this, geopolitical tensions could have affected sentiment, spurring demand as people look to protect their wealth.
With such a surge, silver exchange-traded funds are one avenue that investors can consider to put their money to use. They typically invest in physical silver, futures, contracts, or stocks of silver mining companies.
Here is a look at how they work.