As silver prices soar past Rs 1.09 lakh per kg on the Multi Commodity Exchange (MCX) for the first time on June 17, 2025, and gold continues to hover near Rs 1 lakh per 10 grams, Non-Resident Indians (NRIs) are increasingly eyeing precious metals as a hedge against inflation and economic uncertainty. With geopolitical tensions, a weakening US dollar, and rising industrial demand for silver, both metals offer
compelling investment opportunities. However, NRIs face unique challenges, including taxation, repatriation rules, and investment restrictions under the Foreign Exchange Management Act (FEMA). This
SEO-optimized guide explores whether NRIs should invest in silver and gold in 2025, the best investment options, tax implications, and strategies to maximize returns.

Why Are Silver and Gold Attracting NRIs in 2025?

Silver and gold have long held cultural and economic significance inIndia, and their recent price surges make them particularly attractivefor NRIs. On June 17, 2025, silver futures hit Rs 1,09,250 per kg on MCX, a 24% rise from its low of Rs 88,050 per kg, driven by industrial demand for electric vehicles (EVs) and solar energy. Gold, trading at Rs 99,329 per 10 grams, remains a safe-haven asset amid geopolitical tensions in the Middle East and Russia-Ukraine conflicts. Posts on X highlight silver’s industrial demand and gold’s role as a hedgeagainst rising crude oil prices, reflecting bullish sentiment.

For NRIs, precious metals offer:

Inflation Hedge: Both metals retain value during economic uncertainty,protecting wealth from currency fluctuations. Portfolio Diversification: Gold and silver reduce risk by balancing volatile assets like equities.
Cultural Appeal: Gold, in particular, aligns with Indian traditions, making it a preferred investment for NRIs planning weddings or gifting.
Currency Advantage: A weaker Indian rupee (86.08 vs. USD on June 13, 2025) amplifies returns when repatriating gains to foreign currencies.

However, NRIs must navigate FEMA restrictions, taxation complexities, and storage concerns. Let’s explore the best investment avenues and whether silver and gold are recommended for NRIs in 2025.

Investment Options for NRIs in Silver and Gold NRIs can invest in silver and gold through various channels, each with distinct advantages and limitations. Notably, Sovereign Gold Bonds (SGBs) are no longer available to NRIs for new investments following their discontinuation in Budget 2025, but other options remain viable.

1. Physical Silver and Gold

Description: NRIs can purchase jewelry, coins, or bars from jewelers n India or abroad. Physical gold is typically 22–24 karat, while silver is 99.9% pure.
Pros:

Tangible asset with cultural significance.
No demat account required.

Cons:

High making charges (10–20%) and 3% GST increase costs. Storage risks and insurance costs.
Import limits: NRIs can bring up to 1 kg of gold (subject to 4–10% duty) or 20–40 grams duty-free (valued at Rs 50,000–1,00,000) after a six-month stay abroad.

Suitability: Best for NRIs seeking jewelry for personal use or gifting, but less ideal for investment due to costs.

2. Gold and Silver Exchange-Traded Funds (ETFs)

Description: Gold ETFs (e.g., Nippon India Gold ETF) and silver ETFs (e.g., ICICI Prudential Silver ETF) track metal prices and are traded on the NSE or BSE. One unit typically equals 1 gram of gold or 100 grams of silver.
Pros:

No storage or purity concerns; backed by physical metal.
High liquidity and transparency.
Lower costs compared to physical metals (no making charges).

Cons:

Requires a demat and trading account linked to an NRE/NRO account. Short-term capital gains (STCG) taxed at slab rates, long-term capital gains (LTCG) at 12.5% after three years.

Suitability: Ideal for NRIs seeking exposure to metal prices without physical ownership. Silver ETFs are particularly attractive given rising industrial demand.

3. Digital Gold and Silver

Description: Platforms like SafeGold, Augmont Gold, and MMTC-PAMP allow NRIs to buy 24-karat gold or 99.9% pure silver online, stored in insured vaults. Investments start as low as Rs 10.
Pros:

Highly accessible and flexible; buy/sell anytime.
No storage or security concerns.
Option to take physical delivery (with additional charges).

Cons:

Not regulated by RBI or SEBI, relying on platform trust.
Capital gains tax applies, and withdrawal limits may exist.

Suitability: Perfect for NRIs with limited capital or those prioritizing convenience and flexibility.

4. Gold and Silver Mutual Funds

Description: Funds like HDFC Gold Fund invest in gold ETFs or physical metal, managed by Asset Management Companies (AMCs). Silver mutual funds are less common but available through select AMCs.
Pros:

Professional management and diversification.
Can be purchased via NRE/NRO accounts without a PINS account.
Long-term capital gains tax at 12.5% after three years with indexation benefits.

Cons:

Higher expense ratios compared to ETFs.
Requires a demat account for some funds.

Suitability: Suitable for NRIs seeking diversified exposure with
minimal involvement.

5. Commodity Futures on MCX

Description: NRIs can trade silver and gold futures on the MCX through a PINS account, speculating on price movements.
Pros:

High leverage and potential for significant returns.
Direct exposure to market prices.

Cons:

High risk due to volatility and margin requirements.
Requires expertise and a PINS-linked demat account.

Suitability: Recommended only for experienced NRIs with high risk tolerance.

Restrictions: Sovereign Gold Bonds (SGBs)

NRIs cannot make new investments in SGBs as per FEMA guidelines and their discontinuation in Budget 2025.
Existing SGBs held by NRIs (purchased as residents) can be retained until maturity (8 years) or early redemption after 5 years.
NRIs nominated for SGBs can inherit them but cannot repatriate proceeds to India.

Taxation and Repatriation for NRIs

NRIs must consider tax implications and repatriation rules when investing in silver and gold:

Capital Gains Tax:

Physical Metals: STCG (held <3 years) taxed at slab rates; LTCG (held >3 years) at 12.5% with indexation.
ETFs and Mutual Funds: STCG at slab rates; LTCG at 12.5% after three years. No TDS on ETF sales via exchanges, but mutual fund redemptions may attract TDS.
Digital Gold: Same as physical metals; consult platforms for specific tax rules.

Wealth Tax: If gold or silver holdings exceed Rs 30 lakh in value, a wealth tax applies.
Repatriation:

Gains from NRE account investments (e.g., ETFs, mutual funds) are fully repatriable, net of taxes.
NRO account gains can be repatriated up to USD 1 million annually, subject to tax compliance.

Double Taxation Avoidance Agreements (DTAA): NRIs in countries with DTAA (e.g., USA, UK) can avoid double taxation by claiming credits in their resident country.
Customs Duties: NRIs importing gold pay 4–10% duty on amounts exceeding duty-free limits (20 grams for men, 40 grams for women).

Consulting a tax expert is crucial to navigate India’s tax laws and local regulations in the NRI’s country of residence.

Is Investing in Silver and Gold Recommended for NRIs in 2025?

Silver and gold are recommended for NRIs in 2025, but the decision
depends on financial goals, risk appetite, and investment horizon.
Here’s a breakdown:

Why Invest in Silver?

Industrial Demand: Silver’s use in EVs, solar panels, and electronics is driving prices, with MCX futures hitting Rs 1,11,000 per kg for September 2025 contracts.
Outperformance: Silver has gained 165% from 2015–2025 (Rs 35,000 to Rs 92,500 per kg), outpacing gold’s 220% return in some periods.
Affordability: Lower price per unit compared to gold makes silver accessible for smaller portfolios.
Recommendation: Silver ETFs or digital silver are ideal for NRIs due to liquidity and industrial growth. Axis Securities suggests buying
MCX silver above Rs 1,07,500, targeting Rs 1,13,000. Allocate 5–10% of
your portfolio to silver for diversification.

Why Invest in Gold?

Safe-Haven Asset: Gold’s stability during geopolitical crises (e.g.,Middle East tensions) makes it a reliable hedge.
Long-Term Growth: Gold delivered a 12.9x return from 2005–2025 (Rs 6,500 to Rs 84,700 per 10 grams).
Cultural Demand: High festive season demand (Dhanteras-Diwali 2025) may push prices further.
Recommendation: Gold ETFs or mutual funds suit NRIs seeking stability.
Physical gold is less advisable due to costs unless for personal use.
Allocate 10–15% of your portfolio to gold.

Risks to Consider

Volatility: Silver’s industrial reliance makes it more volatile than gold. A potential pullback to Rs 1,02,000 per kg is possible. Festive Season Impact: High prices may reduce jewelry demand by 15–20% during Diwali 2025, potentially capping gold’s rally.
Taxation Complexity: NRIs must comply with Indian and resident country tax laws, increasing administrative burden.
Storage Costs: Physical metals incur storage and insurance expenses, eroding returns.

Strategies for NRIs Investing in Silver and Gold

Diversify Across Assets: Combine silver and gold with equities, mutual funds, or real estate to balance risk. Experts recommend 5–15% allocation to precious metals.
Prefer Paper/Digital Options: ETFs, mutual funds, or digital metals minimize storage and purity concerns while offering liquidity.

Use NRE Accounts: Invest through NRE accounts for full repatriability of gains, avoiding NRO’s USD 1 million annual limit.
Monitor Global Trends: Track US Federal Reserve rate decisions (e.g., June 18, 2025), geopolitical events, and industrial demand to time investments.
Consult Experts: Engage financial advisors to align investments with oals and ensure tax compliance in India and abroad.

Conclusion

Silver and gold are compelling investment options for NRIs in 2025, driven by silver’s industrial demand and gold’s safe-haven status. With silver crossing Rs 1.09 lakh per kg and gold nearing Rs 1 lakh
per 10 grams, NRIs can capitalize on price surges through ETFs, digital metals, or mutual funds, avoiding the costs of physical ownership. However, FEMA restrictions, taxation complexities, and market volatility require careful planning. By diversifying portfolios, using NRE accounts, and consulting tax experts, NRIs can maximize returns while mitigating risks. Stay informed with NRIGlobe for the latest insights on NRI investments and precious metals.

Sources: Moneycontrol, Business Standard, Economic Times, ICICI Bank, Vance Tech, Policybazaar, X posts

Keywords: NRI silver investment, NRI gold investment, silver price Rs 1.09 lakh, gold price 2025, precious metals for NRIs, gold ETFs, digital gold, taxation for NRIs, FEMA guidelines, portfolio diversification

Published: June 19, 2025 | NRIGlobe