Silver coin

Silver rate in India

Silver per Kg
₹98,498.28
As on 20 June 2024
1.38 (1.42 %)

All you need to know about silver rate today

Silver holds a significant place in investment portfolios due to its dual nature as both a precious metal and an industrial commodity. Historically, silver has served as a hedge against inflation and economic uncertainty, often retaining its value during market turbulence. Its intrinsic value is bolstered by its various industrial applications, ranging from electronics to solar panels, ensuring a consistent demand. 
 

Additionally, silver offers diversification benefits, complementing traditional assets like stocks and bonds. Its relative affordability compared to gold makes it accessible to a broader range of investors, providing a tangible store of wealth. Therefore, incorporating silver into an investment portfolio can enhance stability and mitigate risk, offering the potential for long-term growth and wealth preservation.

 

Silver as an investment 

Investing in silver can offer diversification and a hedge against economic uncertainty. Unlike paper currencies, silver holds intrinsic value due to its various industrial applications and historical role as a store of wealth. Investors can buy silver in various forms such as bullion coins, bars, or exchange-traded funds (ETFs). The silver market price today is influenced by factors like industrial demand, inflation, geopolitical tensions, and investor sentiment. While silver prices can be volatile, many investors view it as a long-term store of value and a way to protect their portfolios against market downturns.

 

What are the factors that drive the silver price today?

The price of silver, like any commodity, is influenced by a variety of factors, including:
 

Supply and Demand: Just like any other commodity, the basic principle of supply and demand plays a significant role in determining the price of silver. Changes in production levels, industrial demand, and investor sentiment can all affect the balance between supply and demand.
 

Industrial Demand: Silver is widely used in various industries, including electronics, solar panels, and medical equipment. Changes in industrial production and technological advancements can affect the demand for silver.
 

Investor Demand: Silver is also considered a precious metal and a store of value, similar to gold. Investor demand, driven by factors such as economic uncertainty, inflation expectations, and geopolitical tensions, can influence the price of silver.
 

Currency Strength: Since silver is priced in U.S. dollars in international markets, fluctuations in the value of the dollar relative to other currencies can impact the price of silver. A weaker dollar typically leads to higher silver prices, as it makes silver more affordable for holders of other currencies.
 

Inflation and Interest Rates: Silver is often seen as a hedge against inflation, as its value tends to rise during periods of high inflation. Changes in inflation expectations and central bank policies, such as interest rate decisions, can affect the attractiveness of silver as an inflation hedge.
 

Geopolitical Factors: Political instability, trade tensions, and other geopolitical events can impact investor sentiment and contribute to fluctuations in the price of silver, especially as investors seek safe-haven assets during times of uncertainty.
 

Speculation and Market Sentiment: Like other financial assets, silver prices can also be influenced by speculative trading activities and market sentiment. News events, economic data releases, and technical analysis can all influence trader perceptions and drive short-term price movements.
 

Stock Market Performance: Silver prices can be influenced by broader market trends, including movements in equities and other financial assets. During periods of economic growth and optimism, investors may allocate more capital to riskier assets, potentially reducing demand for safe-haven assets like silver.

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Silver Rates in Top cities (per Kg)

City NamePricePrice Change
Chennai₹98,498.28₹1380.48
Delhi₹98,498.28₹1383.69
Ahmedabad₹98,498.28₹1380.48
Hyderabad₹98,498.28₹1383.69
Kochi₹98,498.28₹1383.69
Kolkata₹98,498.28₹1383.69
Mumbai₹98,498.28₹1383.69
Surat₹98,498.28₹1383.69
Bangalore₹98,498.28₹1380.48
Coimbatore₹98,498.28₹1383.69

Silver Rates in India

GramTodayYesterday
1 Gram₹98.50₹97.11
8 Gram₹787.99₹776.92
10 Gram₹984.98₹971.15
100 Gram₹9849.83₹9711.46
1KG₹98498.28₹97114.60

What techniques are deployed to check the purity of silver?

Several techniques are commonly used to check the purity of silver:

 

Hallmarking: This is a method where a hallmark, a unique stamp or symbol, is struck onto the silver item by an assay office. The hallmark indicates the purity of the silver and often includes other information like the maker's mark and the year of manufacture.
 

Acid Testing: Acid testing involves applying a small amount of acid to the silver item and observing the reaction. The acid reacts differently depending on the purity of the silver. For example, nitric acid is commonly used; it reacts differently with various silver alloys, producing characteristic colors or patterns.
 

Electronic Testing: Electronic testers use conductivity or other properties to determine the purity of the silver. These devices provide quick and non-destructive testing.
 

Density Testing: Pure silver has a specific density, so measuring the density of the item can help determine its purity. This method is often used alongside other techniques for confirmation.
 

X-ray Fluorescence (XRF): XRF is a non-destructive technique that can accurately determine the composition of a material. It works by bombarding the sample with X-rays and analyzing the resulting fluorescence to determine the elements present and their proportions.
 

Fire Assay: This is a more complex and traditional method used in laboratories. It involves melting the silver and then analyzing the resulting metal to determine its purity.
 

Each of these techniques has its advantages and limitations, and they may be used alone or in combination to ensure the accurate determination of silver purity.
 

Advantages of investing in silver

Diversification: Silver provides diversification within an investment portfolio, especially when compared to stocks and bonds. Its price movements are often independent of traditional financial markets, which can help spread risk.
 

Hedge against inflation: Like gold, silver is often seen as a hedge against inflation. During periods of high inflation, the value of fiat currencies can decline, but precious metals like silver tend to retain their value or even appreciate.
 

Industrial Demand: Silver has extensive industrial uses, including in electronics, solar panels, medical equipment, and more. This industrial demand can provide a floor for its price, as it is consumed in various sectors of the economy.
 

Affordability: Compared to gold, silver is more affordable for many investors, making it accessible to a broader range of people. This affordability enables individuals to accumulate silver over time, even in smaller denominations.
 

Potential for High Returns: Silver prices can be more volatile than gold, which means there is potential for higher returns, although with increased risk. During periods of economic uncertainty or market turmoil, silver prices can spike significantly.
 

Liquidity: Silver is a highly liquid asset, meaning it can be easily bought or sold in various forms, including bars, coins, and ETFs. This liquidity makes it attractive to investors who may need to convert their holdings into cash quickly.

The impact of GST on silver rates

The impact of Goods and Services Tax (GST) on silver rates can vary depending on several factors:
 

Input Tax Credit (ITC): Businesses involved in the production and distribution of silver may have to pay GST on inputs such as machinery, raw materials, and transportation. The ability to claim an ITC can affect their overall costs, which could indirectly influence the final price of silver products.
 

Market Sentiment: Changes in GST policies can influence overall market sentiment and investor behavior. Investors closely monitor government policies and regulations, including tax policies, to assess their potential impact on the economy and financial markets. Any perceived positive or negative impact of GST changes can lead to fluctuations in silver prices as investors adjust their positions accordingly.
 

Supply Chain: GST aims to streamline the taxation system and improve the efficiency of the supply chain. A smoother supply chain can potentially reduce the costs of silver today, which may translate into more competitive pricing for silver products.
 

Import and Export Dynamics: GST can affect the import and export of silver products. Changes in GST rates, export incentives, or customs duties can influence the flow of silver in and out of the country, which can impact domestic silver price rate today.
 

The Influence of Silver Price Fluctuations on Silver-Backed Loan

Fluctuations in silver rates exert a notable influence on silver-backed loans, shaping various facets of lending dynamics:
 

Loan-to-Value (LTV) Ratio Adjustment: Silver rate movements directly impact the Loan-to-Value (LTV) ratio, representing the proportion of the loan amount to the collateral's value. When silver rates surge, the LTV ratio decreases as the collateral's value rises, and vice versa. Lenders often recalibrate this ratio in response to market shifts and risk evaluations.
 

Loan Quantities: Variations in silver rates lead to commensurate adjustments in loan amounts. Elevated silver rates enable borrowers to secure larger loan sums against the same quantity of silver collateral, while diminished rates yield the opposite effect.
 

Interest Rate Tailoring: Lenders may fine-tune interest rates on silver loans in tandem with market dynamics, including silver rate fluctuations. Heightened silver rates may prompt lenders to offer more competitive interest rates to attract borrowers, whereas depressed rates could necessitate interest rate hikes to offset collateral devaluation risks.
 

Repayment Dynamics: Silver rate oscillations can influence borrowers' repayment capabilities. Substantial declines in silver rates may challenge borrowers in repaying loans, especially if collateral values plummet below outstanding balances. Conversely, heightened silver rates may facilitate easier loan repayment owing to increased collateral values.
 

Risk Mitigation Strategies: Lenders vigilantly monitor silver rate movements to mitigate associated risks. They may mandate additional collateral provision or partial loan repayment if collateral values dip below predetermined thresholds, thereby fortifying risk management protocols.

FAQs on Silver Rates

The price of silver is determined by supply and demand dynamics in the global market, influenced by factors such as industrial usage, investment demand, geopolitical events, and macroeconomic trends.

Taxes on silver purchases vary by jurisdiction but typically include sales tax or capital gains tax upon selling.

The best place to buy silver depends on individual preferences and circumstances, but options include reputable bullion dealers, online platforms, or local coin shops.

The silver price fluctuates due to factors such as supply and demand dynamics, economic indicators, geopolitical events, and investor sentiments.