Silver Rate Today in Sonipat

India is one of the leading markets of silver and has a significant influence over the price of silver worldwide. Fluctuations in demand for silver in India cause ripples all over the world. Sonipat is a Haryana district headquarters, 44 km from New Delhi and within the National Capital Region. It is one of the historic cities in the state of Haryana and is home to many small and big industries fueling the demand for silver.

Here silver is one of the most popular metals because of its traditional and sentimental values. Also called white metal, silver is available in jewellery, coins, ornaments, utensils, accessories, etc., in Sonipat. However, it is also one of the most volatile commodities to invest in. Read on to learn more about silver investment options in Sonipat. 

Some interesting facts on silver

• The world’s largest producers of silver metal are Mexico, Peru, and China.
• The largest consumer of silver in the world is India which consumes nearly one-third of silver in the world.
• Silver is used in solar power units, and photography, as a component in some chemicals.
• The Olympic gold medal is silver coated in gold.
• Silver was considered a poor man’s gold during older times.
• The Hunt brother’s attempt to dominate the silver market led to a 700% increase in silver value in 1979.  

Silver vs Gold: A comparative analysis

Gold has always surpassed silver in value, even during ancient times. Silver had been widely used as a currency along with gold, and its value was pegged to gold. It is believed that at one point in time, the value of silver had surpassed gold in Egypt. However, it has not been repeated in history to date. For those who cannot afford gold or are unwilling to buy gold, silver is the next best choice in terms of traditional requirements.

How is the Purity of Silver Evaluated in Sonipat?

Hallmarks are used to rate the purity of silver contents in silver commodities. The Bureau of Indian Standards Act, 1986, launched the hallmarking for the silver metal in India in 2005. To evaluate the purity of the silver, one can look for the BIS hallmark logo on the silver and the silver content in percentage, such as 99%, 97%, etc.

Impact of GST on Silver Rates in Sonipat

The current rate of GST chargeable on precious metals in India is 3%. This includes both silver and gold. Another 5% GST is applicable on making charges for silver jewellery and ornaments.

Silver vs other investment options

Some advantages of silver over other metals are as follows:

• Silver is an essential metal in many traditional beliefs and practices in India. It is also widely used in many industries. Considering the demand, it is expected that the price of silver may go up shortly.
• Silver is one of the most affordable investment options. Investors from the middle class also can invest in silver.
• Silver is not expected to lose its demand in the foreseeable future.

Paper Silver vs Physical Silver

Silver investments in Sonipat can be undertaken in the following forms:

• Ornaments: People of Sonipat prefer to invest in silver, mostly in jewellery, compared to other forms. There are a variety of jewellery, ornaments, decors, and utensils available to choose from and widely available even in nearby jewellery stores.
• Coins: Silver coins are prevalent in Sonipat. Coins are available in many forms of purity. They can be bought from nearby shops or banks. They are popular gifting options and are also demanded during festivals like Dhanteras.
• Bullions: Silver bullions are generally sold in larger quantities, i.e., over 1 kg per piece. They came in various ranges of purity. However, since the investment is higher, it is advisable to purchase bullion from recognised dealers.
• Paper silver: Those who do not wish to invest in silver directly because of its volatile nature can invest in futures contracts. They can invest in it through exchanges like MCX and NCDEX. Such trades can be executed electronically. Another option to invest in paper silver is through silver ETFs. A silver exchange-traded fund is another way of trading in silver without actually buying the metal. The performance of the ETF tracks the market price of silver.

Factors Influencing the Price of Silver in Sonipat

Silver as an investment has high demand in Indian cities like Sonipat. Silver is a necessary item for many traditional rituals even today. However, today’s silver rates in Sonipat fluctuate because of dynamic global economic situations. The current silver rates in Sonipat follow the international rates for the metal. The rates for the white metal are affected by many factors besides demand, such as inflation, liquidity, supply, market conditions, etc.

Silver is a popular commodity in Sonipat, whose demand is unlikely to fall soon. Moreover, Sonipat doesn’t have natural silver reserves, meaning all silver purchased comes in from other states and imports. Any change in import policy affects the price of silver. It is wise to invest in silver, but the pros and cons of different investment forms must be considered before taking the plunge.