Silver rate in Aurangabad

Aurangabad is the fifth most populous city in Maharashtra. A historic city, it has been the seat of several glorious empires, including the Mughals. The city itself is named after the Mughal Emperor Aurangzeb. The Ajanta and Ellora Caves, located nearby, draw countless tourists to the city every year. In addition, Aurangabad is also a significant silk and cotton textile centre.
Precious metals like gold and silver are integral to Maharashtrian culture. Hence, the demand for these metals in Aurangabad is particularly high. But silver scores over gold because it is less expensive.
The people of Aurangabad buy silver jewellery and artefacts during festivities like Ganpati and Dhanteras. This increased demand for silver drives up the prices. Moreover, thanks to widespread digitisation, silver is also gaining popularity as a mode of investment.
If you live in Aurangabad and want to invest in silver, a few things are worth noting. These include the current silver rates in the city, an analysis of how it compares to gold and more. So, read on as we explore various aspects of buying silver in Aurangabad.

How is the Purity of Silver Evaluated in Aurangabad?

The Bureau of Indian Standards (BIS) introduced hallmarks for silver in 2005. However, the Government of India is yet to make hallmarked silver products mandatory.
Many jewellers in Aurangabad may try to dupe customers by selling silver without a hallmark. And hallmark is a guarantee of the fineness of the metal. So, how do you ensure that the silver you are buying is good quality? Simply, adhere to the following checklist:

• BIS logo
• The purity grade/
• Hallmarking identification mark 
• Jeweller's identification mark 
• Year of make

There are six grades of silver, ranging from 990 to 800. Note that 990 is silver in its purest form. In other words, every grade defines the percentage of pure silver in the final product.

Some Interesting Facts on Aurangabad Silver Rates vs Other Cities

• In Aurangabad and the rest of India, silver is popularly used for making spoons, miniature utensils for feeding kids and jewellery items like earrings.
• Silver prices are much more volatile than other metals. This is because silver has a smaller market.
• Buying silver items during Dhanteras is considered auspicious by the Aurangabad residents. This is why the price of silver goes up during the festival.
• Silver has been an integral part of the healthcare sector across the globe.

Comparative Analysis Between Gold and Silver

Gold and Silver are precious metals used to hedge against market volatility.
This crucial factor has fueled an increase in the demand for these metals over the years.
Before you invest in either of the two metals, see how they compare to each other:

Gold
 

• Affordability: Gold is more expensive than silver.
• Storage: You can store gold in any secure storage.
• Usage: Gold is used in the thermal, conductor and electronics industries.
• Market Volatility: Compared to silver, gold prices stay mostly stable.
   

Silver
 

• Storage: Silver requires special cleaners and anti-oxidation strips to keep the tarnish away. It is also denser than gold. Hence, you require a specialised storing facility.
• Usage: Silver is used in medicine, electronics, thermal and manufacturing sectors.
• Market Volatility: Historically, silver is the more volatile of the two metals.
• Affordability: Silver is less expensive.

Impact of GST on Silver Rates in Aurangabad

The introduction of the Goods and Services Tax in 2017 marginally increased the silver rates in Aurangabad. Earlier, gold purchases attracted a 1% Value Added Tax and 1% excise duty. These taxes were replaced by 3% GST after 01st July 2017.
However, the customs duty of 10% remains unchanged. Moreover, if you wish to use silver to make jewellery, an additional 5% GST will apply to the making charges.
So, as observed, the basic tax structure on silver purchases has gone up by 1% post-GST. But when we include customs duty and GST on making charges, the overall tax burden stands at 18%.
These changes have impacted silver prices in Aurangabad, making silver purchases slightly costly.