Silver Rate Today in Anantapur

Silver has always been in demand in the industrial town of Anantapur, or Anantapuramu, which is located in the Rayalseema region of Andhra Pradesh. The city is famous for its granite and cement production and has an Ultra Tech Cements manufacturing unit.
Due to cultural and business reasons, there is a significant demand for silver in the city. However, the demand for silver touches a record high during the festival and wedding seasons. Silver is also used as utensils and other home decor items. 

Factors affecting silver prices in Anantapur 

The price of silver in Anantapur has been quite volatile recently. This is because the rate of silver depends upon several factors, including geopolitics. Moreover, India meets half of its physical silver demand from imports, and the prices largely depend upon international conditions.
So, let's see some factors affecting silver prices in Anantapur: 
Supply and demand
The demand and supply are some of the significant factors that decide the price of silver in Anantapur. As said before, the demand for silver increases during special occasions and weddings, increasing the price of silver in Anantapur.

Exchange rate of rupees against US dollars

India imports more than half of its silver requirements from foreign countries, and the payment is settled in US dollars. When the rupee's position drops against the US dollar, the price of silver in Anantapur goes up.

Import duty

Because large quantities of silver are imported into the country, the prices in Anantapur are directly dependent upon the import tariff rate. It means a high import duty increases the silver prices in Anantapur. 

Oil Prices

Silver mining is an energy-intensive process where most of the energy is derived from fossil fuels. Besides, importing silver via sea routes also needs a constant oil supply. So, the rate of silver is directly proportional to crude oil prices in the international market.

Inflation

Traditionally, gold and silver have provided protection from inflation. As a result, after gold, people look up to silver as a fallback to tide over unfavourable times. 

Impact of GST on silver prices in Anantapur: 

After the introduction of the Goods and Service Tax (GST) in 2017, the tax on silver prices in Anantapur has increased. Earlier, the government was charging a flat 2% charge on silver purchases. This 2% tax included 1% excise duty and 1% VAT. However, with GST implementation, now the tax on silver purchases in Anantapur has become 3%. 

Silver Investment options available in Anantapur 

Various silver investment options are available in Anantapur, including physical and paper silver. Let's start with physical silver options: 

Physical silver

Silver bullion: Bullion means buying precious metals such as gold and silver in bulk, for instance, silver bars. These silver bars are up to 99.9% pure. 
Silver jewellery: After gold, silver has been used mostly as ornaments. Silver jewellery is mostly crafted with 925 sterling silver, making it a valuable asset.
Silver coins: One of the most preferred options in physical silver investment, silver coins are easy to purchase and store. Furthermore, these silver coins are a little more expensive than silver bullion. 

Paper silver

Digital Silver on National Spot Exchange: The National Spot Exchange Limited (NSEL) is a Ministry of Finance, Government of India authorised pan India electronic trading platform. You can buy silver in the form of digital or e-silver. The investment is held in Demat form. However, you will require to open a depositary account with members of NSEL or franchises. 
Commodity futures: Another option to invest in silver is through commodity futures. To invest in commodity futures, you must ask your broker to invest in MCX or NCDEX. However, the prices of silver on these exchanges will be a little higher than in Anantapur. Moreover, you will also be required to pay some amount in advance. 
Silver ETF: Like gold ETF, there is also silver ETF, and you can invest in it through different mutual fund houses. In a silver ETF, 95% of the corpus is invested in silver or silver-related derivative products. 

Understanding the demand for silver in Anantapur

Silver acts as an excellent hedge against inflation, and people from all backgrounds and walks of life choose to buy silver. When it comes to investment, people in Anantapur invest in silver bullion, coins, bars or ornaments. Recently, people have also started focusing on paper silver for investing.