Silver rate in Dhanbad

Dhanbad is one of Jharkhand's biggest cities. Also known as the 'coal capital of India', Dhanbad boasts rich coal reserves and mines. Leading industrial houses like Tata operate mines and industrial units in and around Dhanbad. Besides industry and mining, modern-day Dhanbad is also an education hub. The IIT-Dhanbad attracts students from all around the country every year.
The demand for silver in Dhanbad comes from various sources. Silver, like gold, is a precious metal. And the people of Dhanbad buy silver in the form of coins, ornaments, and bars. Moreover, this white metal is also used in manufacturing solar panels, electronic devices, etc.

Some Interesting Facts on Dhanbad Silver Rates vs Other Cities

• Since India imports silver in substantial quantities, the international silver rates impact silver prices in the country, including Dhanbad.
• Silver utensils are popular across Dhanbad, particularly because silver has anti-microbial properties.
  Many shops in Dhanbad sell sweets topped with silver Varak - an edible garnish.
• In Dhanbad, purchasing silver items is considered auspicious during festivals like Dhanteras. Hence, Dhanbad's silver rates are particularly high this season.
• In 2022, several fund houses in India rolled out silver Exchange Traded Funds (ETFs). Many investors in Dhanbad are now drawn to this scheme.

Impact of GST on Silver Rate in Dhanbad

The Goods and Services Tax (GST) has impacted silver rates in Dhanbad. Before GST, the tax rate was 2% (1% Excise + 1% Vat). However, the introduction of GST increased this rate marginally, and at present, a GST of 3% is levied on silver. Additionally, a 5% GST on making charges is levied when the silver is made into jewellery.

Comparative Analysis of Gold vs Silver in Dhanbad

Historically, gold is more expensive than silver. Hence, many people in Dhanbad prefer silver over gold because it costs less. Here's a quick comparison between the two metals:

Gold

Industrial Use: Gold is mostly used by individuals for jewellery or investments. 

Affordability: Gold is costlier than silver.
Density: Higher than silver (19.32 g/cm3)

Storage Space: You can store gold at any secure location.

Silver
 

Industrial Use: Silver has numerous industrial uses. It is used in glass, mobile handsets, electric conductors, solar panels, medicines etc.
 

Affordability: Silver costs lower than gold.
 

Density: Lower than gold (10.49 g/cm3)
 

Storage Space: Silver tarnishes more quickly than gold. It must be stored in a dry place with climate-controlled features.

How is the Purity of Silver Evaluated in Dhanbad?

The purity of silver directly affects its price. The purity is measured in terms of fineness. Fine or pure silver has the fineness of 999. However, silver in its purest form cannot be used in ornaments as it is too delicate.
To make silver ornaments, sterling silver is most commonly used, which has a fineness of 925. It contains 92.5% pure silver, with metals like copper making up the remaining 7.5%.
The hallmark is the first thing to check when buying silver. It acts as a guarantee of the metal's fineness. In India, the Bureau of Indian Standards (BIS) issues hallmarks for gold and silver items. So, check for the following things before investing:
 

• The BIS Mark or hallmark- a triangular symbol with a dot inside
• The purity grade
• Year of manufacture. In addition, esteemed jewellers also affix their mark on the silver, guaranteeing its purity.

How to Buy Silver in Dhanbad?

You can buy silver in Dhanbad in the following forms:

Silver Coins.

You can purchase silver coins from reputed banks or jewellery brands. They are often engraved with intricate designs. Hence, labour charges are added to the final bill, making them slightly costlier than bars.

Silver Bars

These are typically available in bullion form. Bullion refers to buying silver in bulk. You can purchase silver bullion in the form of bars, rounds or triangles. The storage requirement of investors differentiates the various shapes. You can find bullion bars from .995 purity and higher. From 1 to 100 ounces of kilos - the weight varies based on the buyer's needs.

Silver Exchange Traded Funds (ETFs)
 

These are commodity-based ETFs offered by fund houses and traded on stock exchanges like shares. In this case, a significant part of the corpus is invested in silver or silver derivative products.

Paper Silver vs Physical Silver
 

Physical Silver
 

• A more traditional form of investing in silver
• Requires physical purchase of silver; needs storage
• Coins, jewellery, and bars are examples of physical silver.
• It can be bought from banks, jewellery brands and bullion traders.
   

Paper Silver
 

• A more recent way of investing in silver
• The asset represents the value of silver, without being actual silver; does not require storage
• Exchange Traded Funds and silver futures contracts are examples of paper silver.
• It can be purchased by opening a Demat account.