New Delhi, July 22 -- Silver investments come in different forms, ranging from exchange-traded funds (ETFs) and fund of funds (FoFs) to physical silver, such as jewellery and household utensils.

While all these options provide exposure to silver in different ways, their tax treatment differs. The applicable tax depends on the type of silver investment and the length of time it is held before being sold.

Among market-linked products, silver ETFs qualify for long-term capital gains (LTCG) treatment after a holding period of more than 12 months. On the other hand, silver FoFs or mutual funds are considered long-term investments only after being held for more than 24 months.

The same 24-month holding period also applies to physical silver,...