Silver Rate Today in Thoothukudi

Thoothukudi is a port city in the Indian state of Tamil Nadu. It is situated on the shores of the Gulf of Mannar. It is known for its pearl fishing and shipbuilding industries. It is home to numerous salt pans which are a major economic driver for the area. These salt pans produce 1.2 million tonnes of salt annually, making up 90% of the state's total and 50% of what is needed by the chemical industries. Other significant industries include shipping, fishing, agriculture, power, and chemicals. Fishing is one of the most significant contributors to the local economy, and the Thoothukudi Fishing Harbor is an old and large harbour in Tamil Nadu.

Factors that Affect Silver Rates in Thoothukudi

Silver prices are highly volatile, but they don’t change without reason. One of the major influencers of silver rates in Thoothukudi is demand and supply. The basic rule of thumb states that as the demand increases, the price also increases. The same trend follows with silver. Some other factors which influence the price of silver are:

Industrial Demand: The industrial sector is the majority user of the precious metal silver. Approximately 60% of the silver is utilised by industries producing physical goods. The utilisation of silver in such sectors cannot be replaced by any other metal or element. Hence, the demand for silver in the industries is expected to grow.

Seasonal Demand: During festival and wedding season, silver is often in high demand. This short time increase in demand also increases the rate of silver. 

Import Expenses: Thoothukudi doesn’t have a substantial natural reserve of silver. Hence, the demand for silver is met through import. So if the cost of importing the metal increases, so will its rate in the market and vice-versa.

Strength of Dollar: The dollar greatly impacts the cost of silver prices in Thoothukudi. This is because the US dollar directly affects the Indian economy. Therefore the US dollar strengthens it will decrease the cost of silver and if the US dollar weakens the price of silver will go up.

Oil Prices: Both silver and crude oil demand a lot of resources to be extracted. As a result, silver is directly backed up by crude oil supply. Therefore, any change in the price of crude oil will directly impact the cost of silver.

How to Check the Purity of Silver in Thoothukudi

Silver purity refers to the proportion of silver in an alloy, and is measured in parts per thousand. Adding another metal to the alloy gives strength and durability when used to make suitable items like jewellery. For example, Sterling silver is a common type of silver alloy. It contains 92.5% pure silver and 7.5% other metals, like copper.You can identify genuine silver with the hallmark 999, which has 99.9% pure silver content. Silver is also available in other purity levels, which can be identified by the hallmarks - 990, 970, 925, 900, 835 and 800.

If you are purchasing silver, ensure that it is authentic and of the quality that the seller has told you. Check these marks to ensure that the silver you are getting is authentic:

BIS Mark

All kinds of pure silver assets like jewellery, bars, coins, bullion, etc. will have BIS (Bureau of Indian Standards) marks on them..

Karat

Karat is used to define the degree of purity of silver. As the number of karat increases, the level of purity also increases. However, karat is not a precise measure to define the purity of silver. Hence, in the case of silver bullion, purity is calculated by splitting the karat by 24 and then multiplying it by 1000. 

Jeweller’s Identification Mark

Each jeweller has their mark engraved in silver as well. This mark is used to find the legitimacy of the silver asset. Also, it proves useful in identifying the maker of that silver asset.

Impact of GST on Silver Rate in Thoothukkudi

Buyers must pay the making costs, relevant hallmarking fees, and the Goods and Services Tax (GST) when purchasing silver jewellery in Thoothukkudi.

Except for products older than 100 years, silver jewellery, objects and accessories are subject to a 3% GST rate, regardless of whether they are plated or covered in another valuable metal.

Calculation of Price = Current rate of silver per gram x Weight of silver x Purity of silver + Making charges + Hallmarking charges (if applicable) + GST.

Things to consider before buying silver in Thoothhukkudi

1. To buy silver, check the price trends of silver in Thoothukkudi. Price trends may differ for the form of silver being purchased.
2. When purchasing silver, make sure it comes with a purity certificate. For example, sterling silver has a BIS 925 hallmark.
3. When making an online purchase, make sure you buy from a reputable and licensed dealer.
4. Up on purchase, ensure that your receipt includes weight, purity rate and current price information.

What are the Investment Options in Silver

There are various forms of silver you can invest in. Silver investment can be broadly classified into two types, which further have multiple choices. These types are:

Physical Silver

It is as the name suggests, owning silver assets as a physical commodity. A few of the most popular investments in physical silver are:

Silver Coins- You can invest in silver in the form of coins if you are looking to make a small investment. They come in different sizes and are circular, just like a coin. Based on the purity grade, size, and weight of the coin, the prices will change.

Silver Bullion Bars- Bullion bars are purchased by investors, mostly when they are looking forward to making a decent investment in silver. Silver bars, unlike coins, are sold at intrinsic value, just like in the case of gold bars. They are easy to store and trade as well.

Silver Jewellery- You can always buy silver jewellery and look at it as an investment. Just ensure not to wear silver jewellery in sunlight, as it can cause silver to oxidise.

Paper Silver

You can invest in silver without having to actually buy it. Here are a few ways to invest in paper silver:

Silver Mining Stocks- You can buy the stocks of silver mining companies. They are easy to liquefy as compared to physical silver. Also, since you will be investing indirectly in silver, the price of such stocks is near the market value of silver.

Futures Contracts- Here, you invest in silver at the present date rates and decide on a future date of maturity. Then you can sell the silver you purchased at the value of silver on the date of maturity. This way, you invest in actual silver without having to own it.

Silver Exchange Traded Funds (ETFs)- Investing in silver through ETFs is like investing in mutual funds. This is an ideal investment option for those who don’t want to make heavy investments in the metal or want the hassle of owning it physically.