I made 342% on silver—and still think it was a poor investment

silver bars at ₹55,000 per kg, however, I harboured no such illusions of heroism. I was not riding in to save anyone. My motivation was entirely selfish: to protect a slice of my savings from becoming worthless in a troubled world.Today, at indicative prices of around ₹2,43,000 per kg, I have sold that silver.Selling it, I discovered, was a journey in itself.

I took the bars to a recommended buyer in Mumbai’s Zaveri Bazaar. The final stretch of traffic alone consumed an hour. After showing the silver to the buyer, I was directed—silver in hand—to another location, a ten-minute walk through handcarts, bicycles, motorbikes, cars, stray dogs, and generous helpings of mud and sewage.The weight was verified and scribbled onto a handwritten slip.

Then back along the same dusty route to the original shop. The price per kilogram was quoted. The multiplication done.

KYC followed—PAN card, driving licence, cancelled cheque. And finally, the sale.At that moment, I was profoundly grateful that my gold exposure sits in Quantum's Gold Fund. Buying and selling physical gold coins would have tested both my patience and my cardiovascular health.The arithmetic is simple.

I bought silver at roughly ₹55,000 per kg and sold it at ₹2,43,000. The profit: ₹1,88,000 per kg, or 342% on the original investment. Even after paying capital gains tax, it remains a handsome return.But before you cue the victorious “Hi-Yo, Silver! Away!”, there is one detail worth noting.I bought that silver in April 2013.No typo.

Twelve years and eight months ago. A holding period of 152 months.That 342% return, stretched over 152 months, translates to a compounded annualised growth rate (CAGR) of about 11.5%. Respectable, but not spectacular.