Silver rate in Darbhanga

The fifth-largest city in the Indian state of Bihar and the administrative centre of the Mithila region is Darbhanga. The Mithila region is centred around Darbhanga. A rich cultural history has been passed down through generations in Darbhanga through Sanskrit, Maithili, and Urdu literary, musical, and folk art traditions. Due to its rich history of tradition and culture associated with Bihar, Darbhanga also has a special relationship with silver. As well as being auspicious and valuable, silver is a precious metal.
Many jewellers in Darbhanga make exquisite jewellery pieces. Due to the increased demand for silver during weddings and religious festivals, silver prices in Darbhanga tend to rise during such occasions. Silver prices in Darbhanga are also affected by a number of other factors.

Comparative Analysis of Gold vs Silver in Darbhanga
 

Both gold and silver are precious metals. Let us check out the comparison between gold and silver:

• The price of silver is more volatile than gold. Industries have a greater and more erratic demand for silver. Compared to this, gold has remained steady.
• Silver is inexpensive compared to gold, making it an affordable investment option for investors with a lower budget.
• Silver is heavier than gold, requiring more space to store than gold. Plus, transporting silver is more cumbersome and expensive.
• Demand for silver in industrial use is very high. Moreover, it is susceptible to economic busts and booms.
• The government holds a lot of gold. In comparison, there is a very small stockpile of silver with the government.

How is the purity of silver evaluated in Darbhanga?

Silver, in its purest form, is very soft. To check the purity of the silver, you could:

Check for BIS Mark

It is a triangular symbol with a dot inside and is the official logo of the Bureau of Indian Standards. Your silver item should have a BIS mark on it.

Ice Cube Test

Place an ice cube on the silver you bought. If the ice cube melts faster, the silver is pure, and if the ice melts slowly, the silver is fake.

Ring Test

A ring test is performed to identify the purity of the silver by rubbing it against another metal or another silver object. The silver is likely pure when you do a ring test on silver, and it makes a beautiful sound. If the sound is blunt and dull, the silver could be fake.

Identification Mark 

Every silver item you buy will have a jeweller's identification mark.
Magnet Test: Silver exhibits a weak response to a magnet because it is paramagnetic. Silver is not real silver if a magnet sticks to it more strongly.

Paper Silver vs Physical Silver

Paper Silver:

Obtained through commodity markets such as futures accounts, ETFs, and certificates.
Gives exposure to the price of silver without physically owning the metal.
Does not have intrinsic value, as it only represents a contract for the underlying commodity.
Carries counterparty or credit risk, as the value of the investment is dependent on the financial stability of the issuer.
Suitable for short-term speculation or as a way to gain exposure to the silver market.

Physical Silver:

Obtained directly from dealers or mints.
The actual metal that is held in storage.
Has intrinsic value as it is a tangible asset.
No counterparty risk as it can be held in one's possession.
Requires storage as it tarnishes easily and can be affected by other environmental factors.
Preferred by some investors as a hedge against inflation and geopolitical risks.
In summary, while paper silver provides a convenient way to gain exposure to the silver market, physical silver has intrinsic value, no counterparty risk and it can be use as hedge. However, physical silver requires storage and care.

Impact of GST on silver rates in Darbhanga

GST is charged on silver when you make a purchase. It applies to both the supply of metal and its making into ornaments. As the rates for GST have increased, the silver prices have also gone a bit higher. A 3% Goods and Service Tax is applicable on buying silver in Darbhanga.

Some Interesting Facts on Silver

Let us check out some of the interesting facts about silver:

• Silver has numerous industrial applications and is used in electronic components and microelectronic devices. For instance, switches, wires, circuit boards and smartphones have a hint of silver squeezed in the tiniest spaces.
• The unique shine in silver makes it a much-loved fashion accessory. The atomic symbol of silver (Ag) is derived from the Latin word 'Argentum,' meaning 'shining'.
• It is an essential part of many green technologies focussing on electrification and decarbonisation projects.
• Silver is used in electric vehicles, a growing segment in India.
• It is used in many photovoltaic industries as a renewable energy solution.