Silver Rate Today in Dehradun

Dehradun is the oldest and capital city of the state of Uttarakhand. It's a beautiful city surrounded by Himalayan foothills and lush Sal forests. Dehradun is on the verge of growing into a metropolis due to the establishment of numerous educational institutes. The people of Dehradun consume the majority of the silver imported into Uttarakhand. Silver coins, jewellery, and bars are the most popular forms of silver investment in the city. The price of silver in Dehradun is highly affected by US dollar prices, economic trends, and import duties. Read the article to know the latest price of silver, investment options, and which investment is better.

Silver as an Investment in Dehradun

Silver is available in many forms, such as jewellery, coins, bars, etc. Every form of investment has its pros and cons. You can invest in the following forms of silver in Dehradun for better returns.

Coins: Silver coins are most suitable for small investments. It comes with various percentages of pure silver. Silver coins are more expensive than bars due to additional design and manufacturing costs.

Bars: Silver bars are commonly available in bullion and are the purest form of silver. It is available in the shape of bars, circles, and triangles. The bullion bars can be traded on the market.

Digital Silver: It is the type of e-silver that is traded on the National Spot Exchange Limited (NSEL). You can hold your investment in Demat form and earn profits when the silver price rises. To start investing, the investor must have a depository account on NSEL.

How to Buy Silver in Dehradun?

You can purchase silver in Dehradun from any number of jewellery shops and coin and bullion dealers. Silver can also be bought from a trustworthy dealer on the internet. Consider the silver's purity and the market price before making a purchase.

Consider the goods and services tax (GST) and any other fees that may be added to the purchase price of silver before committing to a final transaction. To get the best deal, it's smart to shop around and compare prices from multiple vendors.

Paper Silver vs. Physical Silver

Silver that can be stored at home is called physical silver. When you possess silver in paper (similar to stocks), it is called paper silver. Paper silver and physical silver has a vast difference in terms of the following factors.

Liquidity: You can predict market trends with paper silver. If you know that the market will face a downturn, you can quickly liquidate your silver in advance, which is not possible with physical silver.

Market: The paper silver market is 243 times larger than the physical market. For example, for 1 ounce of physical silver, 243 ounces of paper silver are traded in the market.

Security: Paper silver is traded online in the market. Therefore, it has an online security risk. So, physical silver is considered a safe investment.

Expense: Physical silver, like jewellery, coins, and artefacts, has additional making charges involved in the value and storage expense. In contrast, paper silver value is only considered for the pure form of silver.

How is the Purity of Silver Evaluated in Dehradun?

Hallmarking is the best and most accurate method to determine silver purity in Dehradun. The Bureau of Indian Standards (BIS) introduced hallmarking in 2005.  It guarantees that the silver purchased is authentic and has a specific percentage of pure metal. The hallmarking contains the purity grade, BIS logo, jeweller's identification mark, and year of marking. Check out the various types of silver with their purity grade below:

• Fine Silver: 999 (99.9% purity)
• Pure Silver: 990, 970 (99%, 97% purity)
• Sterling Silver: 925 (92.5% purity)
• Coin Silver: 900 (90% purity)

Impact of GST on Silver Rates in Dehradun

In January 2021, the Indian government updated the GST rules and regulations. Any type of silver investment is taxable and falls under the 'goods' category. According to current regulations, the consumer has to pay 3% GST on any purchase of silver and silver-related investments.

Comparison between Gold and Silver in Dehradun

Gold and silver are both precious metals that investors often compare. They both provide a haven against market crashes due to economic trends, epidemics, war, etc. Gold and silver differ in the following ways:

Volatility: Historically, silver has been more volatile than gold. As silver demand mostly comes from the industrial sector, small economic changes can impact the silver price.

Liquidity: Both metals are highly liquid. You can easily buy or sell them without much effect on the market price. Gold is a popular asset with a larger market, so it is easier to liquidate than silver.

Storage: Silver is a dense metal compared to gold. So, it requires a larger space to store. In addition, it requires special storage that doesn't have much environmental exposure to prevent it from quickly tarnishing.

Affordability: Silver is more affordable than gold. Silver is a wise option for small investors as the same amount can buy you more silver than gold. Gold is more popular as a reserve asset.