Silver Rate Today in Namakkal

Namakkal is a city located in the Indian state of Tamil Nadu and is known for its rich cultural heritage, fertile agricultural land, and small-scale industries. In recent years, Namakkal has also become a popular destination for gold investment among its residents.

Overall, gold remains a popular investment choice among Namakkal's residents, offering a safe haven during economic uncertainty, stability during inflation, and the potential for long-term capital appreciation. With a thriving gold market and a wide range of investment options, Namakkal is an attractive destination for gold investment.

Interesting facts about Silver

Almost half of the present worldwide demand for silver is due to industrial production. In contrast, it amounts to around 10 to 15% in the case of gold. 

Silver had the poorest performance among precious metals in 2022. The tendency may, however, fully reverse itself in the upcoming years. When compared to other precious metals, the price of silver has historically been more volatile. This is a result of the limited market for silver. 

Silver is frequently used in India to create spoons, little utensils like silver plates used for worship or to feed children, and silver jewellery like earrings.

Also, did you know in the past, dentists used silver to fill cavities?

How to Invest in Silver in Namakkal?

Silver is primarily used in jewellery and ornaments but is also commonly employed to make utensils among certain socioeconomic groups. 

If you’re interested in investing in silver, you can purchase physical silver, like coins, jewellery, silver utensils, or bullion. 

Investment can also be made through commodity markets, exchange-traded Funds (ETFs), etc. You could also consider buying shares of silver mining companies to get indirect exposure in silver. But this investment could prove to be risky as the share prices of these companies are not dependent just on the price of silver. 

How to Determine the Authenticity of Silver in Namakkal?

While purchasing precious metals like silver, there are a few factors to keep in mind to ensure the purity of silver. 

• Hallmark on silver: Authentic silver will have a hallmark of BIS (Bureau Of Indian Standards). This hallmark defines the purity grade of silver.
• Odour Test: Silver has no distinct smell. So, if you sense any odour in the silver objects you are buying, then there is a high chance that it has been mixed with another metal.
• Magnet Test: Silver is not a magnetic material. So, if the silver you buy is drawn to a magnet, it is not authentic.
• Flake Test: By scratching the upper layer of the metal, you can identify the authenticity of the silver. In most cases, the silver coating is done on some other metal. So, by scratching the upper layer, you can see if it was just coated with silver or if it is made from silver.

Factors Affecting the Price of Silver in Namakkal

The supply and demand for silver, as well as other economic factors, determine the price of silver. Let’s look at some factors that affect silver rates in Namakkal:  

• Demand For Investment: The market for precious metals like silver has recently surged as a lot of people are investing in them. This demand for silver has affected the price of the metal in Namakkal.
• Industrial Demand: The industrial demand for silver is also rising. Silver is used in almost all the electronic gadgets being manufactured currently. 
• Cost of Import: There are no silver deposits in Namakkal. So, silver needs to be imported. These imports are priced in US dollars. Therefore, the market price of silver is also influenced by the exchange rate of the rupee to the dollar.
• Demand during festivals: The demand for precious metals like silver goes high during the festivals like Diwali, Raksha Bandhan and wedding seasons in Namakkal. Therefore, the price of silver fluctuates a lot during the festival season.