Silver rate in Chennai

Chennai, the “Gateway to South India”, is the capital of the southernmost state of Tamil Nadu. Chennai is one of the highly industrialised cities and attracts a high number of tourists every year. Chennai is known for its medical tourism from all around the globe. Chennai is well-connected by all types of transportation, including air, rail, and water. It is a popular destination with travellers as it brings together people from all walks of life.
For the same reason, silver is a popular item that people in Chennai like to buy and invest in.

Understanding the Demand For Silver In Chennai

Chennai, the capital city of Tamil Nadu, is a melting pot of cultures. This itself creates a demand for silver all around the year. Buying silver during festivals is considered auspicious and a sign of royalty. As there are people from many cultures and traditions, a whole calendar year in Chennai is almost blocked with festivals.

Silver as a metal is used in many industries like electronic industries, medical equipment manufacturing, etc. As Chennai is an industrial city, there are diverse sectors where there are requirements to use silver, such as in healthcare, automobile, and jewellery segments.

Silver has also been used as an affordable option for investment in the form of ETFs. It is a popular choice of investment for a majority of middle-class households in Chennai. For this reason, silver is sometimes referred to as poor man’s gold. Thus, the demand for silver is constant in Chennai.

The factors that affect silver rates in Chennai

The factors include

• Demand and Supply: The day-to-day cost of silver prices in Chennai goes by the demand-supply rule. The higher the demand, the higher the cost of silver rates in Chennai. People usually buy silver more during festivals and auspicious occasions.
   
• Inflation: Inflation is directly proportional to the silver prices in Chennai. Inflation is known as the general rise in prices. During inflation, the purchasing power of the currency will decrease. i.e., the ability of money to buy goods and services will be low. Silver rates in Chennai will see a slight rise in prices during inflation.
   
• Domestic & International Economic Trends: Silver rates in Chennai depend on domestic and international trends in the economy. When an economy is slow, the residents will hardly find a necessity for investment. Conversely, if the economy is strong, people will buy and invest more in silver. This increases the demand.
   
• Rate of Gold: If you track the trend in silver, it closely follows the gold rates.
   
• Government Policies: Government policies will also have a direct and indirect impact on silver rates in Chennai.
   
• Geo-political Tensions: Geo-political tensions are situations that include war, military activity, climate change, international relations, etc. The silver rate in Chennai may increase accordingly.
  Other factors pertain to fluctuations in the US dollar, oil prices, etc.

Factors You Should Consider Before Buying Silver in Chennai

Whenever you buy silver, it is important to look for some of the following factors to reap the best deal.

Purity and Hallmark: Hallmarked silver is good to buy and invest in. As per the Bureau of Indian Standards (BIs), you should look for four signs that confirm purity. They are

• The Logo of the Bureau of Indian Standards (BIS).
• The identification mark/number of the Jeweller or the dealer.
• The fineness or the Purity grade.
• The identification mark/number of the hallmarking centre.

Buyback Option: A buyback option from a seller will assure you the amount the silver will be taken back by them in the future. However, only a few jewellers and dealers will offer you this buyback option.

Trustworthy Sellers: Of course, this should be the first factor to consider while buying silver. Choose reputed and trustworthy lenders or dealers both online or direct purchase.

Silver vs other investment options in Chennai

You can invest in physical gold, digital gold, real estate properties, stocks, government securities, mutual funds, etc.
Assess the risks associated with every option before investing.
Make sure to choose an investment option that best suits you and has more advantages.

Paper Silver vs Physical Silver

There are two forms of silver as follows.

Physical Silver (Physical Bullion) is what you can buy and store in the form of silver bars, jewellery, utensils, etc. The greatest advantage is the assurance of the actual existence and no techno-hackers will be able to hack your physical silver.

Paper Silver pertains to the intangible form of silver. This is mostly used for trading and commercial purposes. The amount equivalent to the value of physical silver will be with you but not in a physical form that requires storage and safekeeping.

Some Interesting Facts about Silver

• Silver is generally harder than gold!
• Mexico has eco-tourism initiatives where travellers are taken to visit silver mines.
• Silver is said to have antibacterial properties.
• India is the largest consumer of silver in the world