Silver Rate Today in Hubli

Located in northern Karnataka, Hubli and Dharwad are twin cities. A historical region, it dates back to the 11th century CE. In 1961, Dharwad became a part of the Hubli industrial region. Hubli and Dharwad are now home to numerous industries. These include cotton mills and ginning and pressing factories. Due to their commercial importance, Hubli and Dharwad are collectively known as 'Chota Mumbai.'
Silver is considered auspicious in the culture of Karnataka. Hence, the population of Hubli and Dharwad invest in different types of silver-based items, from jewellery to utensils. Since silver is cheaper than gold, people from all backgrounds purchase this precious metal. Its demand is significantly higher during festivals and weddings. Besides its use as a financial asset, silver has many industrial applications. This makes silver a much sought-after commodity in the industrial sector of the twin cities.

Impact of GST on Silver Prices in Hubli and Dharwad

The Goods and Services Tax (GST) was introduced in 2017. Under this regime, all silver purchases attract a GST of 3%. Additionally, you must pay 5% GST on the making charges if the silver is made into jewellery, artefacts or coins. Before GST implementation, the tax on silver was marginally lower. Buyers paid 1% Value Added Tax and 1% excise duty on every purchase. Post-July 2017, GST replaced these taxes, increasing the tax burden by 1%.

How is the Purity of Silver Evaluated in Hubli and Dharwad?

Mostly the purity or fineness of silver alloys is currently stated using the millesimal method. Under this method, a numeric figure denotes the purity of the alloy. It represents purity in parts per thousand. For instance, 999 is silver in its purest form, with a purity of 99.9%.

But how do you ascertain the purity of silver when purchasing it from a jeweller? The first thing to check in this case is the hallmark. In 2005, the Bureau of Indian Standards (BIS) introduced hallmarking for silver. BIS-accredited assaying and hallmarking centres stamp the silver and silver alloys with standard markings. Make sure to check these five marks while purchasing silver:

• BIS certification
   
• Purity/fineness grade,
   
• The identification mark of the assaying centre
   
• Year of production
   
• The identification mark of the jeweller/manufacturer

However, unlike gold, silver hallmarking has not been made mandatory. But you can always request the jeweller to get hallmarked at the time of purchase. However, hallmarking will attract a charge of ₹35 + GST at 18%.

Interesting Facts about Silver

• Silver is continually melted down, purified, and reused due to its near invulnerability. This implies that your silver decorations may contain elements from a different period.
   
• In terms of electrical conductivity, silver ranks 100 on a scale of 0 to 100. Copper is ranked 97th, whereas gold is ranked 76th.
   
• Silver can help generate rain. Silver iodide has been used for cloud seeding, causing clouds to create showers and regulate storms.
   
• Because of silver's germ-killing qualities, feeding infants from silver spoons is known to boost their health.

Factors Affecting Silver Prices in Hubli and Dharwad

US Dollar Fluctuation

The US index inversely affects silver prices. When the US Dollar (USD) weakens, the silver rates go up. Similarly, the strengthening of the USD causes silver rates to come down.

Inflation

Silver and gold are often believed to hedge against inflation. As the value of currency declines, investors turn towards these precious metals to preserve their wealth. And when the demand for silver goes up, the silver rates also increase.

Demand and Supply

The dynamics of demand and supply heavily impact silver prices in Hubli and Dharwad. An increase in the demand-supply ratio will inevitably drive up silver prices. For instance, the festival of Dhanteras sees a surge in silver rates. This occurs due to an exuberant demand for silver during that season.

Industrial Demand

Industries rely heavily on silver. This has fuelled an increase in the need for silver as a commodity. In turn, silver rates have gone up.

Oil Prices

Silver mining is an energy-exhaustive process. Hence, silver rates are directly affected by oil prices. At the same time, the logistics of importing silver require a constant oil supply. Thus, any change in oil prices impacts silver rates.

Gold Price

The price of gold and silver are historically interlinked. In general, when the price of gold rises or falls, so does the price of silver. Some professionals trade on the GSR (Gold-Silver Ratio). They buy or sell depending on how silver rates move with gold rates.