Silver rate in Hyderabad

Silver has always been a household favourite in Hyderabad. Both silver and gold are in demand for various purposes. A city with a vibrant historical past, Hyderabad is now a fast-growing hub for young professionals and investors as well. Tourists flock to experience the city's historical monuments of cultural significance. For most travellers, Hyderabad is one of the prominent business locations they often visit.
Some popular industries with high demand for silver include green technologies, e-vehicles, the automobile segment, and the photovoltaic industry. 

Understanding the Demand for Silver in Hyderabad

As the capital of Telangana, Hyderabad is a renowned shopper's paradise and popular for its stunning historical monuments. Historical monuments like Charminar and the Fort of Golconda need no formal mention as almost everyone in the country has heard of them. Moreover, it is a major hub for the technology industry. The demand for silver remains high in Hyderabad throughout the year, but the city observes an increased demand during the wedding season and festivities.

Comparative Analysis of Gold vs Silver in Hyderabad

Many investors consider investing in precious metals like gold and silver a viable decision. Here's a comparison between gold and silver:

• The demand for silver is more linked to economic conditions than gold. While gold is mainly used in jewellery and bullion, silver is used for technical and industrial purposes.
   
• Silver is considered more volatile than gold. The demand for silver is more from industries and fluctuates more. In comparison, gold has maintained its stability.
   
• Gold is more liquid than silver because gold demand is higher than silver.
   
• The demand for gold is high, especially during the wedding and the festive season. In comparison, silver is used in the automobile industry, thermal, electronics, medicine etc. However, when the economy is down, silver takes an acute hit.
   
• Silver requires more storage and care than gold. This is because silver tarnishes more quickly than gold.
   
• Silver is more affordable than gold.

How is the Purity of Silver Evaluated in Hyderabad?

Silver is one of the precious metals that is very soft. To check the purity of the silver, you could consider the following factors:

• Check the Hallmark: A hallmark trade stamp always authenticates the metal. Thus, before purchasing silver, always look for a standard stamp of sterling.
   
• Bleach Test: Just place a tiny drop of bleach on silver. If the silver tarnishes while being in contact with bleach, then it's real silver.
   
• Weight Test: Silver is denser than most metals. Suppose silver weighs less than it would be made of lightweight silver alloys. If it weighs more, it could be made of lead plated with silver.
   
• Magnet Test: Silver is paramagnetic and shows a weak reaction to a magnet. If a magnet sticks stronger to silver, it's not real silver.
   
• Ring Test: Pure silver makes a ringing sound when rubbed against each other. When you want to identify the purity of the silver, rub them with another metal or silver.

How to Buy Silver in Hyderabad?

You can buy silver in Hyderabad as silver bullion in the shape of coins and bars. Choose reputed jewellers when you want to buy silver. While there are plenty of options to buy online, you can check for recommendations within your social networks as well. Silver could be bought in futures, ETFs, and mining stocks.

Silver as an Investment in Hyderabad

Silver is a very good option as an investment avenue. It acts as a hedge against inflation and fluctuating stock market prices. The use of silver in industries also influences its price. It is more affordable to buy when compared to gold.

You can invest in silver in various forms:

• Silver Coins
• Silver Bars
• Silver Jewellery
• Silver Exchange-Traded Funds (ETFs)
• Silver Futures Contracts
• Stake in Silver Mining Companies

Paper Silver vs Physical Silver

Paper Silver

You can invest in paper silver through the commodity market.
They are not backed by authentic metal and exist on paper only.
You are exposed to credit and counterparty risk.
Silver certificates, exchange-traded funds, and silver future accounts are a few examples.

Physical Silver

It has its intrinsic value and is generally seen in bars and coins.
Physical silver gets tarnished easily and needs storage.
You are not exposed to counterparty and credit risk.
Weight tests, magnet tests, hallmark identification, etc., are ways to evaluate the purity of physical silver.

Impact of GST on Silver Rates in Hyderabad

A Goods and Services Tax (GST) of about 3% is charged on silver jewellery.

When you pay the cost of silver jewellery, it includes the making fees, applicable hallmarking charges, and the Goods and Services Tax (GST).

Silver jewellery, items and accessories, whether they are plated or covered in another precious metal (excluding articles more than 100 years old), are subject to a GST rate of 3%.

Calculation of Price = current rate of silver per gram x weight of silver x purity of silver + making charges + hallmarking charges (if applicable) + GST.