Silver Price Chart
|Silver Rates||Silver (in Rs/Kg)||City Name||Previous||Current||Change (%)|
|bangalore||43442.00||42933.00||-1.19 % ⌄|
|chennai||43442.00||42933.00||-1.19 % ⌄|
|delhi||43442.00||42933.00||-1.19 % ⌄|
|hyderabad||43442.00||42933.00||-1.19 % ⌄|
|kerala||43442.00||42933.00||-1.19 % ⌄|
|mumbai||43442.00||42933.00||-1.19 % ⌄|
Price of Silver in Different Cities
Silver Market Trend
Silver Rate in India
The Indian market offers to invest in commodities like Silver and gold beyond the ordinary shares, real estate, and bonds. The commodity markets are stable than the equity and mutual funds. This is a viable option regarding an investment that is safe.
Silver is an industrious as well as a precious metal. Silver in India is mainly imported rather than produced. The metal is malleable, ductile, lustrous, and also a good conductor of electricity.
The demand for Silver is rising every day in India and China. The ever-increasing gold price has shifted the investor's attention to Silver which is also a haven. The versatile metal is mostly utilized in industrial applications.
The demand for the metal has increased at a rate greater than its production which means that the commodity only appreciates.
India's Silver demand is mostly for jewelry and Silverware. The increasing industrial growth would result in a higher amount of application for the metal.
The Silver prices are fixed based on various factors. The buying, selling, production, and demand are the factors that affect the Silver pricing in India on a daily basis.
Multi Commodity Exchange of India is the full form of MCX. It is an autonomous body for commodity exchange in India. It offers to trade in bullion, energy and agricultural commodities apart from non-ferrous metals.
This is an exchange for commodities like the BSE is for stocks and shares. The MCX sells the products in bulk.
The price for the asset depends upon various factors and is not determined at MCX. The MCX Silver rates are set by trading activity and a bunch of different other factors.
Trend of Silver Rate in india for September 2017 (rates per Kg)
|Sep 1st Rate||Rs. 43065.00/- per Kg|
|Sep 30th Rate||Rs. 42342.00/- per Kg|
|Highest Sep Rate||Rs. 44812.00/- per Kg|
|Lowest Sep Rate||Rs. 42342.00/- per Kg|
|Percentage Change||-1.71 %|
The Factors Affecting the Silver Prices
There’re various factors that affect silver price in India. Although the rate of silver has witnessed a steady hike over the period of last 2 decades, the historical trends should not be taken as a benchmark when considering the future price volatility. Making an investment in silver as a commodity has witnessed tremendous growth in India. Investors consider various factors before investing in silver so that they can make good profits from their investments. Here are the factors that affect silver price today.
- Large Investors - As compared to the gold market, the silver market is smaller. Large traders or investors can potentially affect the silver rate. In 1997, Warren Buffet purchased 130 million troy ounces of silver at $4.50 per ounce that impacted the market prices.
- Oil Prices - Silver mining is an energy-intensive process. Today silver rate is affected by oil prices, as oil is the prime source of energy around the world. The imported silver needs a sound logistics platform, which is backed-up by the consistent supply of oil. Also, fluctuations in the oil price are responsible for the dynamic price of silver as well as of gold.
- Industrial Demand - As our country is stepping towards better industrialization, the demand for silver, especially as an industrial product, has been hiked off late. This correspondingly triggers a hike in silver rates.
- Import Duties - Since silver is imported in India, the silver price is directly linked to the application of import duty on imports. A higher import duty means higher silver rates in India.
- US Dollar Fluctuation - Silver rates are impacted by the US Dollar Index. It means that a rising US Dollar can decrease silver prices in India, while a falling Dollar indicates an increase in silver prices.
- Gold Rate - Generally, silver prices follow the upward or downward trend of gold. If there’s a rise in the demand for gold leads to an increase in its rate, then silver will follow it. Likewise, any decrease in gold rates will trigger a decrease in silver rate.
- Trade Deficit - The higher the number of imported commodities, the higher the trade deficit of a country. With the increase in the trade deficit, the government might take a step to curb the import of those commodities. The government did the same in the last a few years to tackle the gold imports.
- Inflation - Today silver price is adversely affected by inflation.Since commodities like silver and gold are most preferred choices of clients to hedge their funds during financial distress due to inflation, the prices of silver increase when inflation is high.
- Large Concentrated Short Position - At present, 90 percent of all short silver contracts are held by 3-4 of the largest silver traders. This kind of concentration, specifically of a publicly-traded product in the hands of a few people, has a significant impact on silver price in the short as well as in the long run.
The Factors Affecting the Silver Price per 1 Gram in India Today
There are plenty of factors that affect silver rate today. These factors include the international rate of silver. In India, silver rates take cues from the latest happenings in the international markets. As you know, gold and silver rates are in tune. When the gold rate increases, the silver rate also rallies. When the silver price hikes, gold price acts in accordance. Apart from that, there are various other factors that affect the per gram silver price in India. It includes interest rate movement and inflationary trends in India.
Why is Silver in India Cheaper?
Throughout the modern history, silver has been considered cheaper as compared to gold. A majority of silver is used for industrial purposes. It’s not worth it when silver is recycled. Silver is used for the purpose of conductivity in electronic devices. The rarity of silver itself makes it a crucial element and in comparison to gold making, it’s cheaper.
The imbalance in demand and supply of silver and gold creates most price difference between the two metals. One of the primary reasons that make silver cheaper is its lesser demand across the globe. It’s important to know that silver (just like all other metals) works a function of demand and supply. The higher demand means the higher silver and vice-versa.
Where From We Can Purchase Silver in India
In India, we can purchase silver specifically from a bank or a jeweler. Generally, silver coins offered by banks are little expensive. It’s because when we purchase a silver coin from a bank, we’ve to pay the additional charges that include tamper-proof packaging along with an assay certificate.
Purchasing silver from jeweler is costlier than purchasing coins as it includes the making charges of 10 percent (or more). It will include melting charges of 15 percent at the time of resale and it lowers down the returns. You can purchase silver on the commodity futures exchange. Exact MCX silver price can be determined when you make a purchase.
At the commodity future exchange, the length of contract size is comparatively larger. When it comes to silver trading, the smallest contract is traded in the units of 1 kilogram and it is delivered in a minimum quantity of 30 kilograms. Silver is a precious metal that is traded freely, so you can purchase that in the electronic form and the physical form too. If you want, you can place your bet on silver in the futures market.
Should you make an Investment in Silver in India?
You should make an investment in silver in India for the following reasons:
- Demand - In India, silver has a pretty good demand. This demand is generated by the jewelry sector as well as the industrial sector.
- Supply and Demand - In our country, silver has a growing demand. As the demand rises, the availability of silver drops. In the future, it is going to be tough to purchase silver and the silver rates might drive up the restricted supply. It would put long-term investors in a strong financial position.
- Common Man's Gold - Silver is regarded as a common man's gold. Buying silver is easier as compared to buying gold. The silver rate keeps rising and investors are to get various alternatives to make an investment in silver rather than investing in real estate, bonds etc.
- Timing the markets - At times, the silver market can be easily predicted. Some of the basic ways are to let festivals come around or you could wait for the wedding season to arrive. During that time period, the demand for silver as well as gold spikes up.
- No Bank accounts - In our country, a fairly large number of population isn’t familiar with the process of banking/taxation. It’s difficult for people to make an investment in a variety of options. Silver is one of the best options to invest for them.
- Easy Storage - Silver is easy to store in comparison to gold. Various e-silver products that can be traded are available on the NSEL. It lets people make an investment in silver and they don’t have to worry about its storage.
- Liquidity - Silver can help investors during the emergency situations. At the time of personal financial emergency, silver metal can be converted into money. In case the currency loses its value, silver would not.
How to do Silver Trading?
National Spot Exchange has e-series products, such as e-gold and e-silver, and people can make investment or trade in silver like people trade in equities. The trading hours of National Spot Exchange is from 10 am-11:30 pm. Investors can purchase 1 unit to 100 gms of silver at real-time Indian prices in demat form. The price tracks the international silver and gold rates.
In order to trade in NSEL, the investors need to open a demat account with any of the depositories. The depositories’ names are available on the NSEL’s website. Once you open a demat account, you can purchase silver online in dematerialized form. The E-series unit of silver is 100 gms. You can convert your e-silver into physical silver form or money by trading it in NSEL.
What Is The Best Option To Make Investment In Silver?
You can purchase silver from a bank or a jeweler. Buying silver in the form of coins from a bank is a little expensive. When a person buys silver coins from banks, he/she has to pay the packing and assay certificate charges.
The investors can purchase silver from the commodity futures exchange too. It’s better to opt for coins because when you buy silver jewelry or artifacts, it becomes more expensive as compared to purchasing coins.
At the time of purchasing jewelry or ornaments, an investor has to make payment for the making charges as well, which can be 10 percent or more. Also, there’ll be incurred melting charges at 15 percent; it will decrease the resale value of silver.
At present, there isn’t silver ETF in our country. People can purchase silver ETFs exclusively from the American market. In order to purchase silver ETF from the American market, investors need to hold a global trading account.
Reasons to Purchase Silver in India
There are myriad of reasons why you should purchase silver in India. The investors can purchase silver in the form of coins or ornament as an investment. When an investor purchases silver as an investment for the future use, it’s recommended to buy coins instead of buying ornaments. When you sell the silver jewelry, you would not get any making charge. Silver does not react when it comes in contact with air, but the base metals like lead, copper etc. oxidize after coming in the contact with air and it gets and separated.
The ancient people refined silver with the help of a process known as cupellation. Cupellation is a process of refining silver by heating up the silver ore, and then blowing air over it. The largest silver mine is located in Mexico.
What are the Uses of Silver?
Unique features loaded in silver makes it a king in the industrial as well in electrical domains. Here are some uses of silver:
- Essential Anti-Infective - Silver is regarded as an essential anti-infective medicine by WHO. SilverCoat Foley catheters are extensively used in the field of urology in order to prevent UTI.
- Radiology - Silver is used in the field of Radiology, as silver needles, sutures etc. are used to stitch the wounds. Also, silver bearing coatings helps to prevent infections.
- Photography - Silver is used in color film photography as the light-sensitive characteristic of silver activates this.
- Mirrors - Silver is used in mirrors as silver has reflective properties. It reflects 95–99 percent of the light.
- Jewellery - Silver ornaments are very popular. Indians are fond of buying silver ornaments like necklaces, rings, watches, bracelets, pendants, earrings, etc.
Some Mind-blowing Facts about Silver
Some facts about silver are mentioned below.
- The term silver is derived from the word Anglo-Saxon - seolfor.
- There isn’t any word which rhymes with the word - silver.
- On a scale of 0-100, silver ranks 100 regarding electrical conductivity. Copper ranks 97 and gold ranks 76.
- Ag is the chemical symbol (in periodic table) for silver. Ag is derived from the Latin word Argentum, which means silver.
- Solar energy uses silver, as it is one of the fundamental components responsible for the photovoltaic cells.
- Silver is super reflective and is used in mirrors, microscopes, solar cells, and telescopes.
- Silver is a bad reflector of ultraviolet light.
- Silver is regarded as one of the first five metals that were discovered. It’s believed that silver was discovered in 5000 BC.
- Silver is capable of existing in its native state as crystals or nuggets of pure silver do exist in nature.
Silver is a metal that isn’t toxic to human beings and that is why it is used for the purpose of food decoration.
Silver Price History
Silver is a non-ferrous metal that is malleable, ductile, and lustrous. Moreover, it is also a good conductor of electricity. These properties are the reason the increase of the metal has increased in the industrial applications.
India imports the majority of the silver and utilizes it for jewelry and silverware. The silver price history shows that the commodity has always been a stable commodity to invest in rather than equity, shares, and bonds.
The investors closely follow the silver price news that helps them decide whether to sell, hold or buy the commodity. The news gives an insight into the supply-demand patterns which can be used to evaluate the exact profits.
The price fixing is done by organizations that include in the buying and selling of the metal. The international trading impacts the price of the metal the most.
Sterling Silver is a commodity that is 95% silver and rest other 5% are metals mostly copper. This kind of silver is used primarily in jewelry.
Sterling silver is used in electronics, Solar panels and traditional film photography.
Silver is traded by the MCX. Its pricing depends mainly on two important factors:
Though shocking, its prices are dependent on the price of Gold in the international market as well. Various analysis show that the prices of Gold and Silver are related with each other.
MCX is an independent association that buys and sells commodities like the BSE buys and sells stocks and shares. The MCX does not decide the price of the commodity it just acts as an exchange medium.
Q1. What is the reason behind the increase of silver price?
A. The rising market volatility along with the weakened currency markets, particularly the Dollar is associated with the increase in the silver price.
Q2. Why silver coins or bars are regarded as a good investment instrument?
A. Going by the present financial policies due to which value of currencies across the globe are decreasing, making an investment in silver gives you good returns.
Usually, silver coins that are sold by government mints can be verified/ liquidated very easily if there is any need.
Not just that, silver bars come with the lowest premium and is easy to carry/ transport. All this makes it a good investment option, in case you are looking forward to building your investment portfolio quickly.
Q3. In 2017, is silver considered as a good investment option?
A. Going by the predictions, in 2016, silver turned out to be a good investment option even in the fluctuating conditions of the world’s economy. The global market reacted badly to the US Federal Reserve’s rate cut; it added more instability to the volatile market.
Silver is a volatile investment, but price stagnation makes it safe to make an investment prior the price rise.
Q4. Where can I purchase silver bars from in India?
A. You can purchase silver bars India from the public sector banks, private sector banks, and jewelers.
Q5. What’re the benefits of purchasing silver coins from any bank?
A. Purchasing silver coins specifically from a bank gives you an assurance of the authenticity and quality of the silver. When you buy silver from a bank, every purchase comes with a certificate of quality assurance. Banks sell silver at the prevalent market price that decreases that chances where you could pay way too much for your silver purchase
Q6. What is hallmarking?
A. Hallmarking is a process that officially records and determines the metal content in gold/ silver articles. It’s used as a seal of guarantee that assures purity, which is accepted in various countries.
Q7. When is the best time to purchase silver?
A. Generally, most of the investors purchase silver at the time of downturn of the financial markets and economy. It is the worst time to purchase silver as bullion prices are higher due to the uncertainty of stocks and currency. The ideal time to purchase silver is when the market is stable so that you’re able to buy silver at low prices.
Q8. Do banks levy any premium or charge, in case I purchase silver from them?
A. Yes, most of the banks do levy a premium on the bullion sold by them. Such charges are computed on the basis of the market situation at that point of time. Purchasing silver from a bank is a relatively safer option, as the bullion comes with a certificate of quality.
Q9. Do I have to pay any tax when I buy silver?
A. Yes, you need to pay levied service tax at the time you purchase silver. In case you’ve purchased silver bullion of/above Rupees 5 lakh by making the cash payment, you will be charged 1 percent tax.
Q10. What’re the benefits of investing in silver?
A. Here are the benefits of investing in silver:
- At the time of economic instability, silver bullion appreciates in price which assures guaranteed returns at the time of selling.
- As silver appreciates in its value, it is the best investment choice.
- As compared to gold, it is cheaper to make an investment in silver that enables investors to protect their money just by investing in silver.
- Silver is used in industry for multiple purposes and it has greater value industry that makes it more valuable than gold.
- Silver reserves are on the verge of exhaustion since the metal hasn’t been mined for decades. It has created a silver deficit, which has increased its price and value.