Silver Price in India

Silver Price Trend in India

999 Silver Rates

Factors affecting silver price in India

The factors which affect the silverprice in India are listed below

• Industrial demand – Silver has a very large industrial demand nowadays as it is used in numerous ways for making cell phones, touch screens, solar panels, and RFID chips. It is also used in medical industry which also accounts for more demand of silver. These factors largely affect the demand of silver in the industry which in turn affects the price of silver making it an expensive commodity.
• Import duties – Silver is largely imported in India and the price of silver is directly affected by the import duty levied on it. A higher import duty on silver tend to increase its price in the market.
• Gold prices – Usually, prices of gold and silver are closely linked. When there is rise in price of gold, the rate of silver increases and decreases with the fall in price of gold.
• Oil prices – Mining is a capital-intensive process which is dependent on the price of oil. Hence, when oil prices increase, cost of mining silver also increases causing an increase in the current price of silver.
• Trade deficits – Trade deficit is dependent upon the amount of imports, the greater the imported commodities, the more will be country’s trade deficit. As the trade deficit increases, the government introduces additional taxes such as silver imports which lead to increase in the rate of silver in India.
• Silver standards – In India, silver is available in various purities and grades, but the purest form of silver is 99.9% silver which is known as ‘fine silver’. Fine silver is extensively used as a catalyst in electrical industry because high purity silver is very soft which cannot be used for making silver ornaments or jewellery. One of the most commonly used silver standards is the sterling silver, which has a purity of 92.5% and is considered to be the ideal purity for making silver jewellery and coins.

Exchange Trading Silver in India

Following are the three leading commodities exchanges, where a prospective investor can trade in silver

• National Multi Commodity Exchange (NMCE)
• National Commodity & Derivatives Exchange (NCDEX)
• Multi Commodity Exchange (MCX)

FAQs on Silver Rates