Silver rate in Ludhiana

Ludhiana, the capital of Punjab, is one of India's most prominent industrial hotspots. The war memorial, the Lodi dynasty ruins, and Ludhiana's hosiery industry make this city well-known. The town has also adapted to the nation's changing customs and trends. The people of Ludhiana are accustomed to buying silver jewellery and ornaments for festivals and important events. 

The second most desired metal for investment in Ludhiana is silver, whether used in jewellery, industrial processes, or long-term capital investment. Silver has the highest thermal conductivity, widely used in industrial sectors such as electronics, automobiles, and renewable energy. Factors such as the demand & supply ratio, economic trends, geopolitical situations, government policies, and US dollar prices significantly affect silver prices in Ludhiana.

Factors Influencing the Price of Silver in Ludhiana

Silver Prices in Ludhiana depend on the factors such as supply, inflation, trends, occasion, etc. Following are the major factors affecting the silver prices in Ludhiana-

Supply and Demand: Silver has limited resources but has high demands in the industrial sectors and retail sectors. So less supply and high demand is the main factor that affects silver prices.

Gold prices: Fluctuations in gold prices directly affect silver prices as many investors prefer to invest in silver when gold has a high price.

Inflation: When inflation is high, investors minimize the risk by investing in precious metals like silver which affects silver prices.

US dollar price: Silver is traded in the US dollar across the globe. So, fluctuations in the US dollar against the Indian rupee affect the silver rates in India.

Some Interesting Facts on Silver and Silver Rates in Ludhiana vs Other Cities

1. Silver has antibacterial and microbial properties. Therefore, it is commonly used as utensils in many Indian households and some antibiotic medicines.
2. Silver is one of the earliest elements discovered by humankind, along with gold, copper, iron, and lead.
3. Silver is a very malleable material that can be bent, compressed, and stretched into any shape while maintaining its structural integrity.
4. Silver is a highly reflective metal. Hence, it is used in mirror coating, solar panels, telescopes, and microscopes. 
5. The bullion price in Ludhiana differs from other cities due to various state/local taxes and logistic costs.

How to Evaluate the Purity of Silver in Ludhiana?

Always buy silver from authenticated silver retailers or banks. To check out the purity of your silver, look out for the hallmarking. It has purity grade (999, 958, 925, etc.), BIS mark, Jeweller's identification number, hallmarking centre's identification number, and year of marking. It guarantees the purity and authenticity of your silver in Ludhiana. 

Comparison of Gold and Silver in Ludhiana

Gold and silver are both high-in-demand precious metals used to diversify the portfolio. Find out the significant difference between gold and silver here.

Volatility: Silver is highly volatile due to its high industrial application than gold. Even a small change in the economy can impact the silver price. Gold prices stay more stable as it also has high demand in the retail sector. 

Liquidity: Both metals are easy to liquidate in the market. However, gold is the most popular precious metal in the Indian market. So, it is easier to liquidate than gold. 

Storage: Silver quickly tarnishes over time. It requires special storage that prevents it from tarnishing. Also, silver is a dense metal. Therefore, it requires a larger space for storage than gold. 

Silver as an Investment in Ludhiana

The options for investing in silver are categorized into two ways – physical silver and paper silver. Physical is a well-known form of investment, such as jewellery, coins, and bars. In Ludhiana, you can make a beneficial silver investment in the following way:

Silver Bullion: Investors who want to hold tangible silver are likelier to buy silver coins and bars in bullion. It's easy to purchase and in pure silver form. Bullion is traded in the stock market.

ETFs: Exchange Traded Funds (ETFs) are investment avenues that invest pooled money in physical silver or silver-related instruments. Fund managers of ETFs buy the silver and store them in secured storage. 

Silver Future: You can trade silver in the commodity market through future contracts. It's a standard agreement to buy or sell the silver investment at a specific time and price. However, you need a large sum of money to invest in a silver future.

Paper Silver vs Physical Silver

You can select paper, silver or physical according to your preferences and investment goals. Check out the fundamental difference between these two before investing. 

Storage: The main difficulty with physical silver is storage. Paper silver doesn't require any storage space. You can hold your ownership of your assets online.

Liquidity: Physical silver is only profitable when market prices are high. In paper silver, you can predict downturns and liquidate your asset quickly. 

Market: the paper silver market is 243 times bigger than physical silver. It means at 1 ounce of physical silver, 243 ounces of paper silver is available. 

Risk: Both types of silver has their own risk. Paper silver has online security risks, while physical silver comes with counterparty and theft risks.

Impact of GST on Silver rates in Ludhiana

Any purchase of the silver or silver-related instrument is taxable. The government has recently updated the GST rules and regulations to advance the nation's economy. If you buy any silver in Ludhiana, you will have to pay 3% GST on your purchase.