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Silver Rate in Kerala

Gold and silver have distinctly different significances in Kerala. While gold is majorly used for jewellery than trading purposes, silver holds importance as an investment option. The state is one of the leading importers of the white metal in the world, importing 20% 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 Kerala. 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 Rates in Kerala

Silver rate in Kerala, like in all other states, fluctuates due to several global and regional factors, specifically economic factors. Let’s take a look at some of these dominant factors that determine silver rate in Kerala:

Higher cost of imports: Kerala does not have a significant natural reserve of silver and, hence, depends on imports. The applicable taxes on imports increase the silver rate in Kerala, as it does for all the states in India. Additionally, the higher exchange rate of US dollar to the Indian Rupee further increases the silver rate in Kerala.

Manufactural demand from industries: The demand for silver in industries outweighs its demand in the jewellery sector. Some products that require silver are electronic appliances like touchscreens, mobile phone, television as well as RIFD chips, solar panels, manufacture of medicine, among others.

Silver as an investment: Unlike its yellow counterpart, the investment prospects of silver are not as high. However, some investors still see it as a good long term investment, as a result of its falling reserves and increasing demand.

How to Invest in Silver in Kerala?

As discussed earlier, silver is a versatile metal. Apart from the jewellery industry, it is an integral part of the manufacturing process of other industries as well. The fact that it is comparatively less expensive than gold makes it more accessible to a wider audience.

Below are the ways in which one can invest in silver in Kerala:

Silver jewellery, coins and household items: Silver has been one of the most in-demand metal for the manufacture of jewellery, while silver, coins, bars and household items are a reliable source of long term investment. Silver coins and bars can be purchased in a few hundred rupees and earn dividends over long term through steady growth. Silver coins and bars are a better investment option as it does not involve the 15% melting charge that is applicable to silver jewellery.

How to buy silver coins in Kerala?

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

Jewellery retail shops – Silver coins and bars are available in varied weights, enabling individuals to invest in them as per their budget. Leading jewellery brands offer customers the convenience of purchasing silver coins and bars online.

Banks – Banks and financial institutions also offer silver bars and coins. However, extraneous charges like damage-proof packaging, etc. become applicable. What’s more, investors should emphasize on a purity certificate, which involves further charges. This eats into the profit margin of the return on investment.

Apart from the extra charges involved, purchasing from an investor is also less risky, making buying from a jeweller a preferred option from the two.

Things to Remember Before Purchasing Silver in Kerala

While silver coins can be purchased from jewellers as well as banks and financial institutions, silver bars are typically offered by large jewelry brands only.

Current silver rate in Kerala - The most important thing you should remember before buying silver is to update yourself on the prevailing silver rate in India, which will be applicable in Kerala as well.

Futures exchange market – This is one of the most preferred options for seasoned investors, though the contract sizes are comparatively higher than certain other commodities like gold, etc. There are also charges involved over and above the ongoing silver rate in Kerala, making it a favored option for experienced investors only. Silver Exchange Traded Fund – Residents of Kerala can invest in silver ETFs listed in the US market. All that needs to be done is to open an account with a broker, who are specialized investors to invest in international stock markets.

Last 6 Months’ Silver Rates in Kerala

Trend of Silver Rate in Kerala 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 Kerala 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 Kerala 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 Kerala 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 Kerala 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 Kerala 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 Silver Rate in Kerala?

The most important thing to keep in mind while buying any kind of silver is to check the live silver market rates. Silver bars can be purchased from banks and big jewellers, as they are typically kept for serious investors. These bars typically range from 500 gm to 1 kg.

Futures exchange - Buying silver in the futures exchange market is one of the options for a serious investor, but the contract sizes are significantly larger than some other commodities, like gold.

There are also several charges associated with trading in the futures market. These could be in the form of brokerage, stamp duty and various other charges that you would have to bear.

Silver ETF - There is no silver ETF (Exchange Traded Fund) in Kerala at the present moment with the closure of the National Spot Exchange. However, there is an option for trading in Silver ETFs listed in the US market. Investors looking to trade in the silver ETFs listed on the US market need to open an account with a stock broker who offers a platform for investing in international stock markets.

What is the Importance of Checking Silver Rates in Kerala

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 jewelry, extra charges (if any), etc. For instance, if you are an inhabitant of Kerala, it is essential for you to check the silver rate in Kerala, 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 Kerala?

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 evaluate the purity 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 jewelry, 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 in Kerala after a Price Check?

Silver is readily available at all jewellery outlets and banks, which makes it important for investors to be careful with the quality and price that they are paying for their investment. However, it is far from being a complicated process, provided you keep the following in mind while investing:

Be aware of the current silver rate in Kerala – Make sure that you know the current silver rate on the day when you want to make the investment in silver. You will be able to crosscheck the price you are being quoted for your investment, as per its weight and purity.

Consider your investment objectives – The type of silver you should invest in – jewellery, coins, bars or household items, etc. – depends on what you are set out to achieve through your investment. Jewellery is best suited as a long term investment because it proves to more expensive as compared to silver coins, because it involves 15% making charges. On the other hand, silver bars are the most effective option for experienced investors. Consider these factors before taking a conscious decision.

Ensure certification – A purity certification stands as a proof of the quality of the silver an individual is investing in. Ensure that you invest in silver that 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 – Silver investments made online are definitely convenient. However, to make sure about the quality and weight of the silver, ensure that you purchase only from 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 Kerala, you need to know the ongoing silver rate in Kerala 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 per gram silver rate in Kerala?

The per gram silver rate in Kerala, as on 6th August 2019, is Rs. 44.52.

What is 10 gram silver rate in Kerala?

The 10 gram silver rate in Kerala, as on 6th August 2019, is Rs. 445.20.

What is 100 gram silver rate in Kerala?

The 100 gram silver rate in Kerala, as on 6th August 2019, is Rs. 4,452.

What is 1 kg silver rate in Kerala?

The 1 kg silver rate in Kerala, as on 6th August 2019, is Rs. 44,520.

What is 10 kg Silver rate in Kerala?

The 10 kg silver rate in Kerala, as on 6th August 2019, is Rs. 4,45,200.