Digital Silver Is Unsuitable for Short-Term Trading

Digital silver involves 3% GST and a 2–3% bid-ask spread, creating a 5–6% initial cost hurdle before profits. Short-term trading is inefficient as frequent buying and selling magnifies transaction leakage. While silver’s volatility supports long-term gains, active traders face structural pricing spreads that hinder profitability. Breaking even requires meaningful price movement, making digital silver better suited for patient investors than rapid speculative trading.

Gold, trading near ₹1.54 lakh per 10 grams, primarily serves as a monetary hedge and preserves wealth.Silver, integrated into industrial sectors like EV batteries, solar panels, AI data centers, and 5G infrastructure, behaves as a growth asset. While gold offers defensive stability, silver gains from industrial expansion cycles. Investors should weigh risk appetite and macroeconomic trends when allocating between defensive gold and growth-oriented silver exposure.