Silver rate in Amravati

Amravati is one of the largest cities in the western state of Maharashtra, which is famous for its stunning architecture. The Melghat Tiger reserve is a popular destination with wildlife and nature enthusiasts. Many temples and religious places of worship and historical monuments add to the allure of the city, which also has a close link with silver trading.

Understanding the Demand For Silver In Amravati

During festivals and weddings, the demand for silver bars, coins and jewellery increases. This is because people purchase silver ornaments as gifts or for personal use. Silver is also preferred because it doubles as an investment option as physical or paper silver.

Some Interesting Facts on Silver and Silver Rates in Amravati vs Other Cities

Due to its physical properties, silver is increasingly used in industries and for jewellery  and coins/metals.

• Silver also has industrial uses and its significance has grown in recent years as the industrial applications of silver have increased. It has any metal's highest electrical, thermal and reflectivity values.
• Government policies such as tax inflation or deflation play a significant role in the silver rates.
• Silver prices in Amravati as also affected by local factors such as the availability and demand of silver. Global factors like currency exchange rates and import-export charges also impact the price of silver.

As sector-wise requirements for silver increase, the value of silver grows. Silver, being a tangible asset, can be securely stored but other options also allow people to invest in silver without physically owning the metal. People can also invest in silver since it can be hedged against market volatility and inflation.  

Comparison Between Gold and Silver in Amravati

These are the comparisons between gold and silver, the two precious metals that are popularly purchased for personal use and investment:

Volatility

In general, gold is less volatile than silver and will rise less during a commodity bull market while also falling less during a commodity bear market. Long-term success in silver trading typically depends on closing out positions after significant bullish swings.

Industry

With over 56% of the supply of silver being used in the industry each year, silver is used more frequently than gold in the commercial environment. During turbulent economic times, gold climbs due to its perceived safe-haven status in contrast to silver, which is more closely associated with the economy's health due to its extensive use.

Affordability

If you want to invest less money in precious metals, silver is an affordable option.

Silver vs Other Investment Options in Amravati

In addition to investment options such as mutual funds and other market investments, there are two ways that you can invest in silver:

Physical silver purchases: You can buy silver coins, bars, jewellery etc., from jewellers in Amravati. Many jewellers offer hallmarked silver, while some sell un-hallmarked silver objects as well. There are also making charges and GST on every purchase.

Paper silver purchases: You can invest in silver if you want to diversify your investment portfolio and get better returns. You can buy silver exchange-traded funds (ETF) and silver options and futures. These purchases exist on paper and hence, do not include making charges or GST.  

How is the Purity of Silver Evaluated in Amravati?

If you are buying hallmarked silver products, then you can check the purity of silver by looking for these symbols:

• BIS mark with the 'S' symbol
• Purity grades like 990, 925, 800, etc.
• Jeweller's mark

A purity grade defines the percentage of silver content on a specific product. Divide the purity grade by 10 and you will get the percentage of pure silver.

If you are buying un-hallmarked silver products, then it is hard to test the purity of the silver. One option is a magnet test. If the silver is strongly attracted by a magnet, the ratio of silver is very low.

Impact of GST / Central Bank Policies on Silver Rate in Amravati

The Government of India introduced a new tax scheme called GST (Goods and Services Tax) in 2016, replacing the old tax system of VAT. The GST on silver is:

• Before 1/7/2017, Silver had 1.2% VAT and 1% excise duty.
• After 1/7/2017, Silver has a flat 3% GST.
• Silver ETFs had no tax before and after 1/7/2017.

A customs duty of 10% has remained unchanged over international silver prices on every silver purchase including silver coins, bars, ETFs, etc., that is:

International silver rate + Customs duty of 10% = Silver rate in India