Silver Rates today in India

Early Greek Silver coins - Drachma, the world's early coins minted in mid-6th century BC made of silver were valued to a handful of arrows. In India, the Karshapana or Karsha Silver coins were documented as popular ones around the same time as the Greek history with Silver. There is a documented usage of Silver in pre-Mauryan empire as well. Silver was such an important metal that many Indian Kings and courts used the word Rajata to refer to Silver. Jewelry made of Silver had several names, popular ones include Rajatakumbha (Silver Jar), Rajatapatra (Silver Cup), Rajatamaya (made of Silver) and even Rajataparvata (Silver mountain).

Heard of the phrase - born with a silver spoon? That phrase succinctly explains the significance of Silver, the element the world of science refers to as Argentum (Ag). Silver for ages has been used in currency, jewelry with Gold & jewels and also has an extensive use-case in our day to day instruments and machines. Being an industrial element, Silver has an extensive use-case in electrical, smartphones, automobile, Catalysis, Solar, Chemical, Water-filtration industries. Silver also has use-case in several instruments related to the medical industry, photography and photo-copier machines.

An interesting trivia on Silver is how Persians and Greeks from 3-5th century BC used Silver. They stored water in containers made of Silver. Modern Science has documented evidence of how Silver acts as an excellent element to keep bacteria and germs away. In fact Russian and American space programs aboard the International Space Station use ionic Silver to purify water.

According to the Silver Institute, a not-for-profit agency that monitors and encourages the development of Silver and Silver products, the demand for Silver grew by 4 percent in 2018 to 1.03 billion ounces, a three-year high. Demand for silver coin and bar category rose by 20 percent, and silver bars saw demand soar by 53 percent. The institute said that the sentiment in India was exception with "Strong sentiment in India... demand leaped 115 percent higher last year."

In a nut-shell, Silver:

1. Offers hedge against inflation
2. Has attributes of safe-haven
3. Has its own intrinsic value
4. Enjoys wider acceptability and is known as poor man's gold.
5. Offers moderate to decent returns

Although contemporary monetary systems have evolved from Gold and Silver standards, Silver certainly has its own value. In fact, Silver has had its value tracked for a good 6,000 years and therefore has an intrinsic investment value. Silver can purchased as a jewelry or as bars and coins. Broadly, there are 3 ways to invest in Silver: 

• Physical Silver: Bars, coins, or ingots
• Silver Jewelry 
• Paper-Gold: ETFs and Equities tracking Silver value.

Before investing or buying, one should be aware of the purity and types of Silver. Basically, there are 3-4 major types of Silver, categorized majorly on the basis of purity. These are Fine Silver, Sterling Silver, Argentum Silver, Coin Silver etc.

1. .999 Silver or Fine Silver: Most purest form of Silver and available in coins and bars starting from 1 Troy Ounce (31.1035 grams) to 100 ounces and more.
2. .958 or Britannia Silver: Made of 95.84 percent Silver and 4.16 percent other metals such as copper or nickel.
3. .950 Silver: A French standard alloy comprising of 95 percent Silver and 5 percent other metals.
4. Sterling Silver: Considered Standard by jewelers, contains 92.5 percent Silver by weight and the rest made of other metals such as Copper or Nickel. Most popular purity grade for jewelry and silverware.
5. Argentum Silver: Contains 92.5 percent Silver by weight but has different elements that reduces tarnishing and porosity.
6. Coin Silver: More of a colloquial name used to refer to coins minted in the US prior to 1965.
7. 800 Silver: 80% Silver and the remainder are other forms of impurities. Mostly used in jewelries.

Ask these ten questions to ensure a safe and sane transaction.

1. How much and what grade of Silver are you getting?
2. Hallmarking: Check for hallmark mentioning purity, assay centre's symbol, year of marking, and a BIS Logo?
3. What are the making charges? Are you asking for a discount on this?
4. Grade: Is jeweller selling American / German Silver or calling it 100% Silver? If the Jeweller says it is 100% Silver, ask him whether it is Sterling or Fine Silver? The BIS hallmark usually clarifies such doubts. Also, American and German Silver are just forms of glazed Silver and do not yield much after-market value.
5. Antique: Numismatists and collectible enthusiasts should research on what they are buying into and whether such a coin was ever minted. There's a plethora of information available online. Make sure you do a thorough research before parting with your money.
6. Schemes: Is Jeweller giving a Buy Back guarantee?
7. Documentation: Is Jeweller asking for a PAN card? A PAN card could be insisted by the jeweller if the transaction is over Rs 50,000.
8. Transaction Type: Is Jeweller charging additional fee for debit card transactions? RBI regulation clearly mandates banks to educate merchants from passing MDR charges to customers. For Credit Card Transaction, check with the issuing company if conversion to EMIs is possible and the appropriate charges before swiping or tapping your card.
9. Getting a Bill: Do insist on a bill with clearly defined weight, purity and value of Silver as well as any assurances that the jeweller may have offered.
10. GST charges: Silver carries a GST of 3 percent. There is a GST of 5% on making charges. GST on repairs of Silver/Gold is 18 percent and additional Gold or Silver used attracts an additional GST of 3%.

Trading in precious metals follows international market trends. For Silver, the London Bullion Merchants Association (LBMA) and futures trades on commodity exchanges are major influences. The LBMA auction held everyday for five days through the week reflects morning (AM) and noon (PM) rates for Silver.  

Price in India are influenced by currency, base rates, and the rates quoted by jewellery stores and commodity markets. The Indian Bullion and Jewellers Association (IBJA) that's almost 100 years old and based out of Mumbai puts out daily rates, twice a day - once in the morning and once in the evening - for Silver. GST at 3% is then added to the calculation (an additional 5% GST has to be paid on making charges).

Additional costs incurred like transportation charges, the cost of security (guards) needed during this transportation and the cost of insurance are also then totted up.