Silver Rates in Delhi

• Purity of Silver

The purity of gold is one of the major factors that influence the silver rates in Delhi. The Bureau of Indian Standards (BIS) has categorised silver into different grades. Grade 9999 is the purest silver and costs the highest.

Grade 9250 on the other hand will have 7.5% of zinc or copper mixed to provide higher strength and malleability. The price of lower grades will be lesser as compared to the finest grade. 

• Supply and Demand

Like any other commodity, supply and demand forces come into force to determine the silver price in Delhi today. So, if the demand for silver is high but the supply remains stagnant, its price will also go up. 

On the other hand, if people move toward investment options other than silver, the demand would fall. Considering that the supply remains constant, the silver prices in Delhi may dip a bit. 

• Inflation

What makes silver a great investment instrument is that it acts as a hedge against inflation. Considering that inflation is currently on the rise, it is advisable to invest in this precious metal.   

Because of this relationship, the silver rates in Delhi today rise when the inflation rate goes up. On the other hand, when inflation eases, the silver price in Delhi also experiences a downtrend. 

• US Dollar’s Strength

The valuation of the US Dollar directly impacts silver prices all over the globe. When the value of the US Dollar falls, people prefer investing in gold and silver rather than holding the US Dollar.

This increases the demand for this metal and subsequently, the current silver rate in Delhi. Alternatively, silver prices fall if the values of foreign currencies depreciate against the US Dollar.

• Global and Regional Economic Trends

Political uncertainties, wars, and aggression also have a direct bearing on the economic situation. So, when the economic situation worsens, the returns provided by many investment avenues decline.

This pushes the investors to invest in hard assets like silver and gold. The increased demand for metal subsequently pushes the silver prices in Delhi higher. On the other hand, in times of political and economic stability, the price of the metal remains at low levels.

• Central Bank Policies

Central Banks control the credit and monetary policy of a country. In India, the Reserve Bank of India (RBI) revises the monetary policy periodically. Alterations in the monetary policy measures impact the value of precious metals like silver and gold.

Just like gold reserves, central banks also maintain a reserve of silver. The direct buying and selling of silver bullion by the central bank also influences the silver prices in Delhi. When the Central Bank buys silver, the price of this commodity goes up.

• Large Private Institutional Investors

Large private institutional investors also have the ability to influence the market price of silver. For instance, the cost of silver rose worldwide when Warren Buffet purchased 4000 metric tons of silver in 1997.

So, if a large institutional investor decides to purchase silver, the silver rates in Delhi will rise. Alternatively, if institutional investors sell them in large quantities, the silver prices in Delhi will fall.  

• Gold Prices

Historically, silver prices have followed the trends in gold prices. So, when the gold rates climb up, silver prices also follow the path. On the other hand, silver rates rally behind when gold prices are low. However, silver has many times outshone returns on gold.

• Industrial Demand    

Since silver is a superconductor of heat and electricity, it has become an important component in modern industries. Silver is frequently used in sectors related to automobiles, computers, and batteries.

The expansion of such industries has pushed the demand for silver upward. With increased demand, the prices of silver have also rallied behind. 

• Interest Rates

The prevailing interest rates indicate the current sentiments and condition of the market. Central banks lower the repo rate when inflationary forces are in full swing. 

This results in higher demand for silver and gold as an investment option, which subsequently increases their prices. On the other hand, when the inflation rate is lower, the RBI revises the repo rate upwards.  

Increased repo rate means that people will prefer other investment options like FDs and stocks over hard assets. This causes the silver prices in Delhi to decrease.  

In conclusion, silver is an attractive investment option if you wish to invest in hard assets and have low capital. Silver is more affordable than gold and can sometimes provide higher returns.

However, when investing in silver, look at the current silver prices in Delhi. This will help you decide on how much you wish to invest. 

In addition, you must also consider various factors that affect silver prices. These will help you assess the market condition and determine the right time for investing in this precious metal.