Silver Rate Today in Aligarh

A popular university town in Uttar Pradesh, Aligarh has a long and rich history. From the Rajputs to the Mughals - various empires had ruled over Aligarh. Further, the Aligarh Muslim University founded in 1875 played a crucial role in India's freedom struggle. Today, the city is known particularly for its lock-making industry. The Aligarh locks are exported across the world.

This thriving lock market in Aligarh has fuelled the demand for various metals, including silver. Besides industries, silver is also used in intricate jewellery items and utensils. The city witnesses a surge in silver sales every festival season. People consider silver to be auspicious and thus buy it to mark various occasions.

In addition, this white metal is also getting popular as an investment option. People can now buy silver in paper form without owning the actual metal.So, let's dive in to explore today's silver rates in the city, compare silver to gold and discover ways to evaluate its purity and more. Continue reading!

Comparative Analysis Between Gold and Silver

While gold and silver are precious metals, certain differences exist between the two. Take a look at some of them before investing:

Gold is rarer than silver and thus asserts a higher value.

Silver is less expensive than gold because it has a wider supply.

Beyond ornaments, gold has little usage. Silver is widely used across industries. Hence, the demand for silver is higher than for gold.

For long-term hedging, gold is a sought-after option.

Paper Silver vs Physical Silver

Paper silver is a contract that represents the value of silver. Physical silver, on the other hand, denotes real metal. Several differences exist between the two. Following are some highlights:

Storage

Paper silver is a contract that doesn't require any storage. Physical silver is tangible and costly. It must be stored securely.

Ownership

Paper silver doesn't provide ownership of the actual metal. Physical silver offers ownership of the metal.

Usage

You can't wear paper silver. You can wear physical silver as fashion accessories.

Supply

It is traded in practically unlimited quantities. Physical silver is a limited commodity used by industries and individuals.

Credit Risk

Paper silver is a part of the financial system and thus comes with credit risk. Physical silver operates outside the purview of the financial system. Hence, it has no credit risk.

How is the Purity of Silver Evaluated?

Hallmark is the first indicator of the metal's purity when you buy silver. In India, the Bureau of Indian Standards (BIS) issues hallmarks for silver and gold. However, unlike gold, hallmarking for silver is not mandatory. That being said, jewellery brands can get silver items hallmarked on their own. The Government of India has laid down quality standards for voluntary silver hallmarking. It specifies six grades of silver alloys. These include 990, 970, 925, 900, 835 and 800.

At the time of purchase, you can ask the jeweller to get the silver hallmarked. They will take the jewellery to an assaying centre close by. If the silver meets the quality standards, the centre will hallmark it. However, remember that the jeweller will charge ₹ 35 + GST at 18% on every hallmarked piece of jewellery. It should contain the following signs:

1. BIS mark with 'SILVER'
2. Purity grade/fineness mark
3. Hallmarking identification mark 
4. Jeweller's identification mark 
5. Assaying the centre's identification mark

That's how you evaluate the metal's purity through hallmarking. Let's now understand a home-grown method to test the fineness of silver. Known as the magnet test, it is a straightforward process. To begin with, remember that silver is not magnetic. Hence, magnets are not drawn to it. So, bring the silver close to several magnets. If they attract, it means that the silver you are testing contains high iron content.