Silver rate in Pune

Surrounded by the Sahyadri Hills, Pune is a vibrant city in Maharashtra. Thanks to its reputation as an educational hub, Pune is called the 'Oxford of the East.' It is also home to many corporate offices that employ people from all over India. No wonder the city boasts a thriving community of conscious investors.
Despite different investment options, the residents of Pune still like investing in precious metals like silver. The demand for this metal particularly rises during festivals like Ganpati and Dhanteras. From ornaments to coins, the Pune residents buy silver in various forms. Moreover, it is also used widely in industrial units. Hence, silver remains a much sought-after metal in the city.
When you decide to invest in silver in Pune, the first thing to note is the prevailing silver rate. However, the rate changes based on several factors. So, knowing about them is equally crucial.
Read on as we dive deep into the Pune silver markets to give you a 360-degree insight!

Factors Affecting Silver Rate in Pune

Import Cost

India's silver reserves are limited, while the demand for silver remains high. So, the country imports silver in large quantities to meet its domestic demand. Since silver is traded internationally in US Dollars, the import rates affect the silver rates in India.

Industrial Sector Demand
 

Globally, silver is used to manufacture many industrial products. These include solar panels and gadgets like televisions, mobile phones, etc. Just like gold, the price of silver also varies based on the dynamics of demand and supply. In other words, the higher the demand for silver, the higher its price.

Gold Prices
 

When markets are bullish, investors turn to precious metals like gold and silver. The silver market is much smaller than the gold market. Hence, the price of silver moves up fast.

Oil Prices
 

Experts argue that mining silver is an energy-intensive process. Hence, the price of silver tends to be impacted by oil prices.

GST Impact on Silver Price in Pune

Since the introduction of the Goods and Services Tax 2017, silver purchases attract a GST of 3%. This is a minor increase from the pre-GST tax structure, which included 1% Value Added Tax and 1% Excise duty.
If you want to purchase silver jewellery, then the final bill will include the following elements:

• Cost of Jewellery
• Making charges
• Hallmarking charges (if any)
• 3% Goods and Service Tax (GST).

Ensure that the invoice contains this breakdown. It will help if you decide to sell the silver at a later date.

Silver Investment Options in Pune

Coins and Bars
 

If you are looking for smaller investments, you can opt for silver coins. However, if you wish to invest significant funds, then opt for silver bars. Investing in coins and bars are preferred over ornaments. This is because coins and bars do not include making and melting charges.

Jewellery
 

The demand for silver jewellery has remained high because it is relatively inexpensive than gold. Be it earrings, necklaces, bracelets, etc., investing in silver ornaments is affordable. But remember that you must pay to make charges at the purchase and melting charges when you wish to liquidate the metal.

Silver ETF

The Silver ETF invests in silver and silver-related instruments as its underlying assets. ETF portfolios invest up to 95% of their assets in physical silver, which is typically stored in vaults or traded as commodities derivatives on exchanges.

Digital Silver on National Spot Exchange

Digital silver, or e-silver, is one of the innovations of the National Spot Exchange, which enables investors to buy little chunks of silver and hold them in a Demat account.
Members of National spot exchange limited or franchises can purchase them on the national spot exchange trading platform. Before investing, any prospective client must open a depositary account with one of these members. You can also invest in physical silver with National Spot Exchange Limited.

Futures exchange

Investors can purchase silver on the futures exchange market. However, the contract amounts are much more significant than some other commodities, such as gold.
An agreement to buy or sell silver at a specific price at a later time is known as a futures contract. Due to the silver price's extreme volatility, this type of investment carries a very high risk.
Nevertheless, purchasing a futures contract might be a smart move to make money if you think the price of silver will increase in the future. Trading on the futures market is also subject to some fees, such as brokerage, stamp duty and other expenses.

Steps to Check the Purity of Silver in Pune

In India, the Bureau of Indian Standards (BIS) evaluates the purity of silver. To certify the metal's fineness, the BIS issues hallmarks. Hallmarking ensures complete transparency in the processes of the jewellery industry. Silver investors in Pune must look through the below checklist before investing:

• The BIS hallmark.
• The identification mark of the jeweller and the year of marking.
• Purity grade.
  For fine silver or pure silver, the purity grade is 999.9 to 999. For silver jewellery, and other artefacts, the grades include 970, 925, 900, 835 or 800.