Gold BeES vs Silver BeES: Which is the Better Investment?

Nowadays, most things have become online  and investments are also being made digitally. Earlier, people used to choose traditional options like fixed deposits or physical gold, but now they are being replaced by easy and smart options like ETFs (Exchange Traded Funds).

Of these, two names are most discussed: Gold BeES and Silver BeES. These are such ETFs which are directly linked to the prices of gold and silver. This means that without buying physical gold or silver, one can get the benefit of their price increase. Both of these can be bought and sold in the stock market like any common share.

The biggest feature of these is that a huge amount is not required to invest. And there is no tension of keeping it in the locker or purity. Everything is digital and easy.

What is Gold BeES?

Gold BeES (Gold Benchmark Exchange Traded Scheme) is an exchange traded fund (ETF) that tracks the price of gold in India. It is a financial instrument in which one can invest in the price of physical gold without buying it directly. It can be bought and sold like shares on stock exchanges like NSE or BSE.

Gold BeES in India is operated by leading asset management companies like Nippon India Mutual Fund. The capital collected in this scheme is invested in gold of 99.5% purity, which is kept in secure vaults. This process makes the investment transparent, reliable and free from physical complications like lockers.

Some Benefits of Gold BeES:

• Minimum Investment: Just 1 unit (equivalent to approximately 1 gram of gold)

• High Liquidity: Anytime trading possible through the stock market

• Low Cost: No making charges or storage cost as compared to physical gold

• Tax Friendly: Long Term Capital Gains Tax and Indexation benefits on holding for more than three years

Investing in gold through digital platforms has become a modern, simple and safe option, especially for investors who want gold exposure in their portfolio.

What is Silver BeES?

Silver BeES is a way to invest in silver digitally without holding it in hand. It can be bought and sold in the stock market like a share. That is, as the rates of silver go up or down, its price will also move.

This is called an ETF (Exchange Traded Fund), which actually tracks the price of the asset in which the money has been invested. In Silver BeES, that asset is silver. The money invested in it is invested in real physical silver and is kept in a safe vault of the bank.

The advantage of this is that neither one has to go to the jeweler to buy silver, nor is there any tension about storage. It can be traded through a Demat account from a mobile or a laptop.

Some Benefits of Silver BeES:

• Can be started with less money

• Direct benefit when silver rates increase

• No tension like physical silver – like polishing, theft or storage

• Tax benefits are also available if held for a long time

When it comes to Gold BeES vs Silver BeES, silver has more volatility, so the scope for profit is also higher. Yes, the risk also increases a bit. For those who want a chance of high returns and who understand the movement of the market well, Silver BeES can be an interesting option.

Difference Between Gold BeES and Silver BeES

Both Gold BeES and Silver BeES are ETFs based on gold and silver prices, but there are some key differences between the two. Below is a table that explains the differences between the two.

Gold BeES is better suited for those who want stability and safety, while Silver BeES is suitable for investors who can take a little risk with the possibility of higher returns. Investing in both can also diversify the portfolio.

Gold vs Silver BeES: Market Trends and Performance Analysis

Gold and silver prices in India witnessed significant fluctuations during May 2025, influenced by factors such as inflation, global tensions, recession, industrial demand and institutional investment trends.

• Performance during inflation: During times of inflation, investors often turn to safe assets, increasing the demand for gold. In May 2025, the price of 24 carat gold reached Rs.98,460 per 10 grams, reflecting the impact of inflation. Silver prices also rose during this period, but their volatility remained high.

• Impact of global tensions: During global geopolitical tensions, gold prices saw a rise, leading to better performance of Gold BeES. Silver prices were also impacted, but their volatility kept investors cautious.

• Performance during recession: During recession, gold remained a safe investment option while silver prices witnessed more volatility. This clearly shows that Gold BeES offers more stability during recession.

• Industrial Demand: Silver is used in the electronics, solar panel and automobile industries, which affects its demand and prices. While gold has limited industrial use, its prices depend mainly on investor demand.

• Institutional investment trends: Institutional investors consider gold a safe and stable investment, leading to increased investment in Gold BeES. Institutional investment in silver is low, but Silver BeES may perform better if industrial demand increases.

Gold BeES is a better choice for those looking for stability and inflation protection in their portfolio, while Silver BeES is more suited for investors looking to capitalize on the potential for short-term price appreciation, especially when industrial demand is growing rapidly.

How to Invest in Gold BeES or Silver BeES?

Today, investors have ETFs like Gold BeES and Silver BeES as an alternative to traditional gold and silver, which are considered easy, transparent and regulated by SEBI. These ETFs are listed on the stock exchange and can be bought and sold like shares.

• Investment Process: To start investing in Gold BeES or Silver BeES, one first needs to have a valid Demat and Trading account. This account can be opened on any registered brokerage platform in India like Zerodha, Rupeezy, Upstox. Once the account is activated, investors can easily search for these ETFs on exchanges like NSE or BSE and place orders at the market price.

Why Invest with Rupeezy?

Rupeezy is a reliable and user-friendly brokerage platform that allows investors to invest seamlessly in ETFs like Gold BeES and Silver BeES. Features available on Rupeezy include:

• Real-time market data

• Order placement with easy-to-use interface

• Investment portfolio tracking

• Research and analytics support

Rupeezy aims to make investing not just simple, but also safe and strategic, so that every type of investor whether new or experienced can confidently pursue their financial goals.

Points to note:

• Before investing in ETFs, make sure to review their Expense Ratio, Tracking Error, and Liquidity.

• These products can offer better prospects if invested for the long term.

• These investments are linked to the prices of gold and silver, so they are prone to volatility.

Silver vs Gold BeES: Which is Better for Your Portfolio?

• Conservative Investors: If you are risk averse and looking for stable returns, Gold BeES is suitable for you. It provides protection during inflation and economic uncertainties. Currently, the rise in demand for gold and the purchase of gold by central banks have strengthened its prices.

• Aggressive Investors: If you are willing to take a little more risk with the possibility of higher returns, Silver BeES can be a good option. Industrial demand for silver, such as use in electric vehicles and solar energy, is boosting its prices.

• Mixed strategy for diversification: Experts suggest that investors should allocate 5-8% gold and 10-15% silver in their portfolio. This mix can provide protection against inflation, geopolitical tensions and market volatility.

• Current Economic Scenario: In 2024, both Gold BeES and Silver BeES have given around 20% returns. Even in 2025, investing in both will remain attractive due to the stable rise in gold prices and industrial demand for silver.

Pros and Cons of Investing in Gold BeES and Silver BeES

Both Gold BeES and Silver BeES are exchange-traded funds (ETFs) that offer investors an opportunity to invest in gold and silver digitally. Investing in them avoids the complexities of buying, storing and safeguarding physical metals. Below is a description of their key advantages and limitations:

Advantages and Limitations of Gold BeES

Benefits:

• Inflation protection: Gold is traditionally considered a safe investment against inflation.

• Low volatility: Gold prices are relatively stable, making it suitable for long-term investments.

• No storage required: Investing in Gold BeES eliminates the worry of safety and storage of physical gold.

• High liquidity: Being listed on the stock market, these can be easily bought and sold.

Limitations:

• Low short-term returns: Investment in gold has low chances of quick gains.

• Lack of interest income: Investment in gold does not yield any regular interest or dividends.

Benefits and Limitations of Silver BeES

Benefits:

• Higher potential returns: Due to industrial demand for silver, its prices are more likely to rise.

• Low cost: Silver prices are lower than gold, making it a more accessible investment option.

• Industrial use: Silver is used in electronics, solar energy and other industries, which keeps its demand stable.

Limitations:

• Higher volatility: Due to changes in industrial demand, silver prices can fluctuate more.

• Less protection against inflation: Silver offers less effective protection against inflation than gold.

Comparison Table

Conclusion

Both gold and silver have performed strongly in 2024 and are likely to remain in demand in 2025 as well. Gold, due to its stable returns and protection from economic uncertainties, is considered a safe and reliable investment option. On the other hand, industrial demand for silver is growing rapidly, especially due to its use in sectors such as solar energy, electronics and electric vehicles.

It is beneficial to keep the portfolio balanced while investing. Gold offers stability while silver has the potential for better returns with more volatility. Investment decisions should be taken as per the risk profile and financial goals. Investing with diversification in both gold and silver can be a smart strategy.

FAQs

Q. What is Gold BeES?

It is an exchange traded fund (ETF) that tracks gold prices.

Q. What is Silver BeES?

This is an ETF that follows silver prices.

Q. Which is more stable – Gold BeES or Silver BeES?

Gold BeES is more stable and less volatile.

Q. Can Gold BeES and Silver BeES be traded like stocks?

Yes, both can be traded in the stock market.

Q. Are there any tax benefits in investing in Gold BeES or Silver BeES?

Capital gains tax is applicable in the long term, but less tax is levied on physical gold.

Q. Is Gold BeES safe during inflation?

Yes, it is considered a good hedge during inflation.