Silver rate in Ghaziabad

Ghaziabad is a district town in Uttar Pradesh that lies on the historic Grand Trunk Road. The city is home to more than 2.3 crore people. Its superior road and rail connectivity has earned Ghaziabad the title 'Gateway of UP.' An industrial hub, it also houses several industries, including electronics, consumer durables etc. The presence of various manufacturing hubs has increased the demand for silver in Ghaziabad.  

In addition to industries, silver is also used in jewellery. The festival season is a particularly busy time for the silver trade in Ghaziabad. This is because people buy silver in the form of artefacts, ornaments etc. Moreover, to the digitally savvy investment community of Ghaziabad, silver is gaining popularity as an investment option.

To invest in silver in Ghaziabad, you must first understand the silver rates in the city. Remember that the rates are rarely stable. They fluctuate based on multiple factors. To make your buying decision easier, here is a guide on different aspects of silver in Ghaziabad. From ongoing rates to interesting facts - we cover them all. So, continue reading!

Comparative Analysis Between Gold and Silver

Gold & silver are both valued highly in Indian culture. They are made into ornaments or used as gifting options. Moreover, many investors believe that they act as a hedge against inflation. Despite these similarities, the two differ from each other on various grounds. Let's look at some of them:

Gold

• Utility: Gold has very few applications apart from jewellery making.
• Cost: Gold is more expensive than silver.
• Volatility: Gold prices are comparatively more stable than silver rates.
• Storage: Gold does not require special storage.

Silver

• Utility: Almost half of the world's silver is used in industrial applications.
• Cost: Silver costs lesser than gold.
• Volatility: Due to its small market, silver prices are highly volatile.
• Storage: Silver oxidises when exposed to the outside environment. It is also denser than gold and this requires specialised storage.

How is the Purity of Silver Evaluated in Ghaziabad?

The Bureau of Indian Standards (BIS) is a Government-backed institution which hallmarks precious metals in India. These include gold and silver. Hallmarking certifies the purity of silver in the final product.

Unlike gold, hallmarking for silver is not mandatory in India yet. At the same time, buying jewellery or coins without a hallmark is not advisable. So, exercise caution and put your money in the silver product only when it features the following things:

• BIS mark
• The purity grade.
• Hallmarking identification mark 
• Jeweller's identification mark 
• Year of making

Lastly, ensure that you collect an invoice from the seller.

Silver as an Investment in Ghaziabad

There are various ways to invest in silver in Ghaziabad. From jewellery to Exchange Traded Funds - silver is becoming popular as an investment option. Here is a glimpse of how Ghaziabad invests its silver:

Coins

If you want to invest a small sum, to begin with, coins are an excellent choice. They are sold by different jewellers and banks in Ghaziabad. However, compared to bars, they are more expensive.

Bars

You can invest a large sum in bars. They are much in demand and easy to liquidate.

Silver Exchange Traded Funds (ETFs)

Silver ETFs are commodity-based ETFs. Many fund houses offer them. Nearly 95% of the corpus is invested in silver or various silver derivative products.

Some Interesting Facts on Ghaziabad Silver Rates vs Other

• India is the 12th largest silver-producing country in the world.
• Due to its high conductivity and economic pricing, silver is widely used across industries.
• Thanks to its multiple applications and steady demand, silver rates continue to increase.
• In Ghaziabad, silver is often used in miniature cutlery like spoons for kids.

Impact of GST on Silver Rate in Ghaziabad

The introduction of GST in 2017 impacted silver rates in Ghaziabad by a tiny margin. Before GST implementation, the tax was 1% VAT along with 1% excise duty. Post-GST implementation, the tax was changed to 3% GST.

So, as observed, in the pre-GST era, silver purchases attracted tax at the rate of 2%. After GST, there has been a 1% increase in taxes.

However, remember that a 10% import duty is also imposed. Further, if you want to make silver jewellery, coins or artefacts, you must also pay a 5% GST on making charges.