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Silver Rate in Karnataka

Gold and silver have distinctly different significances in Karnataka. While gold is majorly used for jewellery than trading purposes, silver holds importance as an investment option. The state of Karnataka is one of the leading importers of the white metal in the world, importing a considerable percentage of the world’s silver. Like all places across the world, the global demand and supply for silver is one of the primary factors that determine the daily silver rate in Karnataka. It is one of the most valuable metals, second only to gold, not only in terms of its importance, but abundance as well.

Factors Affecting Silver Rate in Karnataka

Silver rate in Karnataka, as applicable to all states in India, fluctuates due to several international and national factors, specifically those related to economy. Below are the predominant parameters that affect silver rate in Karnataka:

Higher import costs: The taxes levied on gold imports in India increase the silver rate in India, which is applicable to Karnataka as well. What’s more, the higher conversion rate of US dollar to the Indian Rupee further pushes up the silver rate in Karnataka.

Demand from industries: Silver faces comparatively more demand from industries than from jewellers. Some of the industries that require silver for the manufacturing of its products are electronic appliances like touchscreen mobile phone and television as well as solar panels, RIFD chips, manufacture of medicine, etc.

Silver as an investment: Though the demand for silver is not as high as gold in terms of its investment prospects, it remains a good long term investment. The rising cost of silver is the result of its falling reserves and increasing demand.

How to Invest in Silver in Karnataka?

Silver is a versatile metal. The following are the ways in which an investor can invest in silver in Karnataka:

Silver jewellery: Silver is an important part of the jewellery industry for both men and women. It has a wider demand because it is comparatively less expensive than its gold counterpart.

Coins and bars: Silver coins are a good investment option as it is affordable and can be purchased at a few hundred rupees, depending on the weight. It achieves steady capital appreciation over the long term, and that too without being exposed to the volatility of the capital market. As an investment, coins and bars are a more preferred option as it does not involve the 15% melting charge that is applicable to silver jewellery.

Household items: Silver is considered to be auspicious and is an integral part of Indian festivities.

Things to Remember Before Purchasing Silver in Karnataka

Silver coins are considered to be an auspicious part of festivals in Karnataka. There are two channels through which you can invest in silver coins and bars:

Jewellers - Silver jewellery and coins are available in varied weights, which enable individuals to invest in them as per their budget. Silver jewellery prices also depend on the intricacy of designs. Therefore, buyers have the flexibility to choose the design and weight. Leading jewellery brands offer customers the convenience of purchasing silver coins and bars online.

Banks - Banks and non-banking financial institutions also offer silver bars and coins. However, extra charges like damage-proof packaging, etc. are added over and above the base price of the metal, as per the ongoing silver rate in Karnataka. Investors should emphasize on a purity certificate, which involves further charges. This eats into the profit margin of the return on investment.

However, despite the increased price, purchasing from an investor is also less risky, making buying from a jeweller a comparatively better investment option.

Silver Rate in Karnataka for the Last 6 Months

Trend of Silver Rate in Karnataka for July 2019 (rates per kg)

1st July 2019Rs.40,578
31st July 2019Rs. 44,965
Highest Price on JulyRs.44,965/- per kg
Lowest Price on JulyRs.40,560/- per kg
Overall PerformanceOn the rise
Percentage Change+10.81%

Trend of Silver Rate in Karnataka for June 2019 (rates per kg)

Silver Rates1 Kg
1st June rateRs.39,600
30th June rateRs.40,500
Highest rate in JuneRs.40,500 on June 29
Lowest rate in JuneRs.39,450 on June 2
Overall performanceRising
% Change+2.27%

Trend of Silver Rate in Karnataka for May 2019 (rates per kg)

Silver Rates1 Kg
1st May rateRs.40,500
31st May rateRs.39,500
Highest rate in MayRs.40,700 on May 3
Lowest rate in MayRs.39,360 on May 25
Overall performanceFalling
% Change-2.47%

Trend of Silver Rate in Karnataka for April 2019 (rates per kg)

Silver Rates1 Kg
1st April rateRs.40,647
30th April rateRs.40,000
Highest rate in AprilRs.40,863 on April 10
Lowest rate in AprilRs.40,000 on April 23
Overall performanceFalling
% Change-1.59%

Trend of Silver Rate in Karnataka for March 2019 (rates per kg)

Silver Rates1 Kg
1st March rateRs.43,300
31st March rateRs.41,500
Highest rate in MarchRs.43,300 on March 1
Lowest rate in MarchRs.41,100 on March 8
Overall performanceFalling
% Change-4.16%

Trend of Silver Rate in Karnataka for February 2019 (rates per kg)

Silver Rates1 Kg
1st February rateRs.41,450
28th February rateRs.43,300
Highest rate in FebruaryRs.43,700 on February 26
Lowest rate in FebruaryRs.41,300 on February 4
Overall performanceRising
% Change+4.46%

How Does GST Impact on Silver Rate in Karnataka?

With effect from 1st July, 2017, a GST rate of 3% is applicable on silver. It is believed that the increase of the GST rate would encourage unorganized players to enter the organized market.

What is the Importance of Checking Silver Rate in Karnataka?

The current silver rate in India determines the price that you will have to pay for your investment in silver, as per its weight, intricacy of silver jewellery, extra charges (if any), etc. For instance, if you are an inhabitant of Karnataka, it is essential for you to check the silver rate in Karnataka, which will be the same for all of India, before you invest in silver. Otherwise, you may be overcharged for your investment.

What is BIS Hallmarked Silver Rate in Karnataka?

BIS or Bureau of Indian Standards is the institution that is authorized with the responsibility to oversee and ensure the purity of silver in India through hallmarking. Hallmarking is the procedure followed to record and analyze the quality of the metal constituent in silver or gold. The first company in India that was founded to offer 999 BIS Hallmarked Silver Coins was FX Global Metal Corporation.

Silver purchased from banks are perceived to be more reliable in terms of its purity than from jewellers, despite silver from banks being more expensive because it involves extraneous charges. Silver investments from banks are also less risky because they are accompanied with a purity certificate that is a proof of their quality, as notified by the relevant bank and an external agency.

The Hallmark scheme was launched by Bureau of Indian Standards for silver in 2005 under IS 2112. A hallmarked silver item will consist of

  • The BIS hallmark, and
  • Identification hallmark or number assigned by the Government of India
  • A purity grade varying between 999.9 to 999 for fine silver and grades of 970, 925, 900, 835 or 800 for silver jewellery, alloys of silver and silver artefacts
  • Identification mark of the relevant jeweller
  • Year of marking, as indicated by a unique code letter for the year of manufacture

How to Buy Silver After Checking Silver Price in Karnataka?

Below are the points you should consider while buying silver:

Be aware of the ongoing silver rate in Karnataka – Make sure that you know the prevailing silver rate in Karnataka when you invest in silver. This will enable you to ensure that you are not overcharged for your investment.

Know your investment objectives – The type of silver you should invest in – jewellery, coins, bars or household items, etc. – determines what you are aiming to achieve through the purchase or investment. Jewellery is best as a long term investment as it is more expensive than silver coins due to the 15% making charge. Silver bars are a preferred option for seasoned investors. Consider these factors to take a well-informed decision.

Ensure certification – Certifications and hallmarks are a proof of the quality of silver an individual is investing in. Check that the silver that you invest in bears the BIS hallmark, mark of the relevant jeweller, mark of the Government of India, year of marking and purity grade. Be doubly sure for online purchases – Online availability of silver in all forms have made its purchase hassle-free for customers. However, you are unable to check its quality and weight physically, and hence you must emphasize on the necessary hallmarks and certifications before the purchase. You should also make sure that you opt only for certified sellers.

Conclusion

Purchasing quality silver is no longer a challenge as it was before. With the establishment of BIS or Bureau of Indian Standards, the process of marketing has become streamlined. This body keeps a strict watch on the quality of the silver being sold. Another new development has been the online availability of the metal, thanks to digitalization. As an investor in Karnataka, you need to know the ongoing silver rate in Karnataka and emphasize on the necessary hallmarks, proof of its grade and certifications to ensure that you are investing in quality silver.

FAQ's On Silver Rate in Karnataka

What is the per gram silver rate in Karnataka?

The per gram silver rate in Karnataka, as on 14th August 2019, is Rs. 47.26.

What is 10 gram silver rate in Karnataka?

The silver rate in Karnataka for 10 grams, as on 14th August 2019, is Rs. 472.60.

What is 100 gram silver rate in Karnataka?

The silver rate in Karnataka per 100 grams, as on 14th August 2019, is Rs. 4726.00.

What is 1 kg silver rate in Karnataka?

The silver rate in Karnataka per 1 kg, as on 14th August 2019, is Rs. 47262.00

What is 10 kg silver rate in Karnataka?

The silver rate in Karnataka per 10 kg, as on 14th August 2019, is Rs. 472620.00

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