Silver Rate Today in Nizamabad

Are you wondering whether you should purchase silver during this festive season? The wedding season remains at its peak in Nizamabad and other parts of India from November to February. During this time, Indians believe it is auspicious to buy silver ornaments (both for weddings and festivities). Recently, people in Nizamabad and other parts of India are buying more silver than gold as an investment tool. 

Silver is viable if you want to diversify your investment portfolio, protect your wealth in uncertain times (like wars, economic downturns, etc.), and hedge against inflation. The best thing about silver is that you can buy it at an affordable price in Nizamabad. 

Before checking silver rates in Nizamabad, let’s first try to understand the reasons that affect the demand for silver in this city and other parts of India.

Silver as an Investment in Nizamabad

You should invest in silver because:

• Safe Haven: Silver, just like gold, are safe haven for investment, especially during wars, pandemics, recessions, and uncertain times.
• Affordability: Siver price is significantly low than gold. It is around 84 times more affordable than gold.
• Increasing Demand: One of the major reasons for its high demand is its usage in  electronics and industrial purposes. Renewable energy industries consume a large amount of silver. With the increasing popularity of renewable energy, the demand for silver is expected to increase. It will make demand outstrip the supply of silver in the future. That's why you should invest in silver now to get higher returns in the future. 

Impact of GST on Silver Rate in Nizamabad

A 3% GST has been levied on silver. A 5% GST on making charges has also been levied on silver jewellery. Most of the silver in India is imported. The customs duty on imported silver is 12.5%. The tax rates were 1.2% VAT and 1% excise duty during the pre-GST era. 

Paper Silver vs Physical Silver in Nizamabad

Silver is becoming more and more lucrative for investment. This is mainly because of its affordability and increasing demand for new-age technologies. If you plan to invest in silver, you can do it by investing in physical silver or paper silver. 

Let's check their differences:

Physical Silver

• Physical silver is available in silver bars, coins, and jewellery.
• They have intrinsic value.
• You've to store physical silver properly otherwise, it may get tarnished easily.
• No credit or counterparty risk is involved when you buy physical silver.
• The purity of your physical silver can be evaluated with the help of hallmark identification, magnet tests, and weight tests.

Paper Silver

• Common examples of paper silver are silver ETFs (Exchange Traded Funds), silver certificates, Milestone Bullion Series 1, digital silver of National Spot Exchange, and silver futures contracts.
• You can easily invest in paper silver future contracts through commodity exchanges such as NCDEX or MCX.
• Both counterparty risk and credit risk are there when you buy paper silver.

People who buy silver for investment purposes usually avoid purchasing physical silver. This is mainly because of the making charges and otehr taxes applicable on physical silver. Now, let’s explore why you should start investing in silver.