Silver rate in Coimbatore

Coimbatore is famous as a manufacturing hub. The city meets most of India's demand for motors and pumps, thus earning it the title of 'Pump City.' Simply put, this is a city where manufacturing activities require the use of silver across its diverse sectors.
The price of silver in Coimbatore has been on the rise in recent years. Silver is a precious metal, used widely in the jewellery, electronics, and medical sectors.
Investing in silver in Coimbatore is a great way to diversify your portfolio. Due to its widespread usage, it is also a valuable metal that remains in demand.

Understanding the Demand for Silver in Coimbatore

More than 25,000 small, medium, and large businesses operate in Coimbatore. So, how do the people of this prominent city use silver?

1. Silver jewellery is popular in south India and Coimbatore is no exception. People of all ages love wearing silver. Types of silver jewellery include necklaces, earrings, rings, bracelets, and anklets.
 

2. Silver is an essential component in the manufacturing of electronic products. It creates conductive pathways and connections within electronic devices. Hence, a significant chunk of electronics manufacturers in Coimbatore use silver.
 

3. Silver also plays an important role in the medical industry of Coimbatore. It is often used as a disinfectant or anti-microbial agent.

Some Interesting Facts on Coimbatore Silver Rates vs. Other Cities

1. In Coimbatore, miniature silver utensils are hugely popular.
2. Coimbatore silver rates follow international rates of silver. India imports significant quantities of silver. Hence, any change in the global rate impacts silver prices within India, including Coimbatore.
3. Buying silver during Dhanteras is considered auspicious by Coimbatore residents. Hence, the price of silver typically increases in this period.
4. Many sweet shops in Coimbatore sell sweets covered in Varak - an edible garnish made of silver.
5. Numerous Coimbatore investors have started investing in silver exchange-traded funds or ETFs since they were introduced in 2022. These are funds that represent the value of silver in a dematerialised form.

Silver as an Investment in Coimbatore

You can invest in silver in Coimbatore in the following ways:

Silver coins or silver bars
 

Owning silver in physical form has been one of the most popular ways to buy silver. You can purchase coins or bars from any reputed jeweller or bank.

Silver Jewellery
 

Silver jewellery is used both as a fashion accessory and a gifting option. However, it attracts substantial making charges.

Silver Exchange Traded Funds (ETFs)
 

Exchange-traded funds are units of silver represented in paper form. These funds track the actual market price of silver and are traded on stock exchanges. You need a Demat account to start investing in them.

Silver Futures
 

Silver Futures is a contract that promises delivery of silver to the owner on a specified date and at a speculative future price of the metal.

Impact of GST on Silver Prices in Coimbatore

The introduction of Goods and Services Tax (GST) in 2017 impacted silver rates in Coimbatore by a tiny margin.
Before GST, silver purchases in the city attracted a 1% Value Added Tax and 1% excise duty. GST at the rate of 3% replaced both taxes with effect from July 2017.
However, silver purchases continue to attract a 10% customs duty. Moreover, if you want to make silver jewellery then you must pay an additional 5% GST on the making charges.
Silver investors in Coimbatore must, therefore, brace themselves for an overall tax burden of 18%.

How is the Purity of Silver Evaluated in Coimbatore?

The Bureau of Indian Standards (BIS) hallmarks silver in India to ensure its fineness and purity.
If you want to buy silver, check the following factors:

• The BIS logo
• Jeweller's identification mark
• Purity grade
• Year of Making
   

Besides these essential factors, keep the following things in mind.

1. Check the current market rates.
2. When purchasing online, ensure that the seller is reliable and authorised.
3. Collect the invoice and make sure that it specifies.the weight, purity level, and actual price.

Gold Vs Silver in Coimbatore

Silver and gold share a close relationship. To begin with, both are precious metals considered auspicious in Indian culture. Furthermore, silver prices track the prices of gold. Hence, comparing them is obvious, particularly when you want to investin either of the two. Here's a quick comparison:

Gold
 

Industrial Usage: Used in the thermal and electronics sectors.
Market Conditions: Stable for the most part compared to silver.
Cost: Less affordable than silver.
Storage: Does not require specialised storage.

Silver
 

Industrial Usage: Used in the electronics, medical and automotive sectors.
Market Conditions: More volatile than gold due to its smaller market size.
Cost: More affordable than gold.
Storage: Denser than gold and oxidises rapidly. Thus, silver requires special storage.