Silver Rate Today in Tirupattur

Tirupattur is a city located in the Vellore district of the Indian state of Tamil Nadu. Despite its relatively small size, the city has a rich history of gold investment and trade, which continues to be an important part of its local economy.

The city is home to a number of gold shops and jewelry stores, offering a wide range of gold products, from pure gold bars and coins to beautiful gold jewelry. The gold is sourced from trusted suppliers and is of high quality, making it an attractive investment option for both local residents and visitors to the city.

Impact of GST on Silver Rate in Tirupattur

• Under GST (Goods and Services Tax), silver purchases are subject to 3% GST, while jewellery-making fees are liable to 5% GST.
• There are three types of taxes on gold & silver imports in India: Custom Duty (12.5%), Agriculture Infrastructure Cess (2.5%), and Social Welfare Surcharge (10% of Custom Duty).
• Since July 2022, the Social Welfare Surcharge has been exempt. As a result, import duties are now 15%.

Silver as an Investment in Tirupattur

You can invest in silver in a variety of ways. Bars, coins, and jewellery are a traditional way to invest in silver. In addition to physical silver, you can also invest in a silver futures contract, digital silver, and many other paper instruments.

• Physical silver: Gold and silver have been passed down from generation to generation as family heirlooms. Silver comes in various forms, including jewellery, coins, bars, and utensils. From an investment point of view, coins and bars can be a better option due to their purity levels. You can buy silver coins from banks and jewellers throughout the state.
• Silver contracts: A silver futures contract is the newest investment vehicle for silver, exclusively traded on Multi Commodity Exchange (MCX), the Commodity and Derivative Exchange (NCDEX), and the National Commodity and Derivatives Exchange (NCDEX).

In the world of trading, a silver future contract refers to an agreement to deliver a commodity at a later date. In other words, we can contract for metal at the current market rate and then redeem it with physical metal or redeem it for cash at a current market rate. However, majorities of investors are yet to embrace such investment strategies.

How to Check the Purity of Silver in Tirupattur?

If you want to check the purity of silver, the most common method is using a test kit. This method yields reliable results. Test kits are easy to use and you can buy them from any store. Different test kits are available in the market based on their quality and price.

The BIS hallmark stamp indicates the purity of a silver item. It shows that the item is made with at least 950 parts per thousand pure silver.

Factors Influencing the Price of Silver in Tirupattur

The following is a list of factors that influence silver prices in India.

• Oil prices: As silver mining is an energy-intensive process, oil prices directly influence its mining costs. Also, fluctuations in oil prices can affect the logistics cost, which results in fluctuating silver rates.
• Industrial demand: There are many industrial uses for silver, including automobiles, medicine, electronics, and green technology. Nearly half of the global demand for silver comes from industries. As industrial demand for silver increases, the price of silver rises.
• Gold Rate: There has often been a strong correlation between gold and silver prices. When the market is favourable, investors tend to invest in precious metals. As a result, the growth of the gold market also influences the silver market. However, gold and silver do not always correlate perfectly, and sometimes their prices move in opposite directions.
• US Dollar: Silver rates and the USD index are negatively correlated. Whenever the USD weakens, the silver rate rises. In contrast, silver rates tend to decline when the USD strengthens.
• Interest rates: The popularity of fixed deposits is widespread throughout the country. However, when the rate of interest drops, Investors are more likely to prefer gold and silver. As a result, silver's price increases due to a rise in demand.
• Inflation: A rising inflation rate usually leads to a rise in the price of gold and silver. Precious metals often serve as a hedge against inflation, thereby increasing their demand and value.
• During festivals or wedding seasons: The demand for gold and silver usually peaks during the festive and wedding seasons, which leads to higher prices.