Silver Rates in India

1. BIS Hallmarking

Just like gold, the present silver rate is also determined by its purity level. When buying physical silver or silver jewellery, you can purchase silver hallmarked by the Bureau of Indian Standards (BIS).

 

The BIS has laid down guidelines to check for four signs when assessing the hallmarked silver:

• The logo of BIS with ‘SILVER’ engraved on it

• The grade of purity

• Identification number of hallmarking centre

• Identification number of the jeweller

 

The purest form of silver comes in Grade 9999 and Grade 9995 of the BIS hallmark. If you wish to purchase silver coins or bars, you should go ahead with the finest grade of silver. Note that the grade of silver also affects the silver price in India.

 

However, to provide silver jewellery with strength, jewellers generally add other metals to it, usually zinc and copper. So, when purchasing silver, ask your jeweller about its purity. 

2. Making Charges

The silver rate generally includes two components: the market price of the metal and the making charges. The making charges are the cost of producing and designing a piece of jewellery. It also includes labour charges.

 

The making charges for silver start from ₹3 per gram. However, making charges for silver jewellery is lower compared to making charges for gold.  

3. Look if Buy Back Policy is Available

You can also buy new silver jewellery by selling off your old silver. When you buy new silver jewellery, ask the jeweller if the buyback policy is available. It facilitates you to sell your old jewellery to the same jeweller. 

 

For example, if you sell a silver article of 925 grade, the buyer may only provide you with 92.5% of its value. So, before purchasing new silver jewellery, take into account if a buyback policy is available.

1. Supply and Demand

Supply and demand metrics influence the silver price in India. If the demand for silver is high but the supply is limited, the silver prices will also go up. However, if the demand for metal falls, its prices may also fall.

2. National and Global Economic Trends

Just like gold, silver is also considered a safe investment option to hedge against economic uncertainty. So, with the worsening economic situation, the silver rate goes upward. 

 

On the other hand, the demand for silver remains low in a robust economy and hence, silver rates are lower.

3. Inflation

Investment in silver is considered a safe haven against inflation. So, when inflation is high, the silver prices rise accordingly and vice versa. As inflation lowers the value of the paper currency, investment in metals protects the purchasing power of the investor.

4. Strength of the US Dollar

The US Dollar has an inverse relation with the silver rates. It means that when the value of the US Dollar increases in comparison to other currencies, the value of silver falls. Alternatively, silver prices rise if the US Dollar is devalued.

5. Gold Prices

Historically, there has been a close relationship between the prices of gold and silver. Generally, when the rate of gold goes up, the silver prices also rally behind. 

6. Interest Rates

Interest rates are also inversely related to the silver rates. When the interest rates are down, people tend to invest in silver to avail of higher returns. On the other hand, when interest rates are higher, other investment options seem more attractive to people than silver.

7. Government Policies

The rate of this metal is highly influenced by government policy as its sales are regulated by the government. Just like gold, central banks across the globe deal in silver bullion. So, when the government makes changes to the existing regulations, it might affect the silver prices.

1. Silver Home Items and Jewellery

If you are planning to purchase household objects in silver like utensils, or jewellery, keep in mind that these items attract making charges. Also, when you sell these items, the jeweller may charge you 15% melting charges.

 

In addition, when you buy physical silver, you need storage capacity to keep it safe. So, you may have to pay for a bank locker facility, if you decide to purchase it.

2. Purchasing Silver Coins

Investing in silver coins is another great investment option as you can choose coins of different weights based on your budget. However, when purchasing a silver coin, make sure to buy it from a certified seller and get a purity certificate for the same.

 

Such coins are available with jewellers and banks. You can also buy these coins online. Note that coins from banks can be slightly more expensive than those from jewellers.

3. Guide to Buy Silver Bars

The most important thing to do when purchasing silver in any form is to check the current silver price rate. Here is a guide about what else you need to do if you wish to buy silver exchange:

4. Futures Exchange

If you are a serious investor, investing in silver in the futures exchange market may be the right option for you. However, note that the trading volume of silver in the exchange market is significantly higher than gold. You may also have to pay certain charges like: 

• Brokerage fees

• Stamp duty fees

• Segment charge

5. Silver ETF

The National Spot Exchange in India does not offer trading options in silver ETF (Exchange Traded Fund). However, you can still invest in silver ETFs listed in the US markets. For this, you need to open an account with a broker that allows trading in international markets