Silver Rate Today in Aizawl

Aizawl is the capital of the state of Mizoram, India. It is the state's largest city and the centre of administration. Additionally, it serves as the administration hub, housing the civil secretariat and all significant government offices. The National Highways 540, 40, and 150 connect Aizawl to Silchar, Agartala, and Imphal, respectively.
Within the different communities of the ethnic Mizo people, precious metals like gold and silver are considered auspicious. Silver is an affordable precious metal for the people of Aizawl. They commonly invest in silver coins, jewellery and bars. The demand for silver in the city rises during the wedding and festive seasons. The city's price of silver is affected by many internal and external factors. Let's learn how you can invest in this precious metal to get good returns.

Silver as an Investment in Aizawl

You can invest in silver in many forms in Aizawl, according to your budget and investment goal. Some effective ways to invest in silver are as follows:

Bullion

You can buy silver bars as bullion in Aizawl. It comes in the purest form of silver and is traded in the commodity market. Silver coins are also available as bullion, but the prices are higher than bars due to additional printing charges.

Coins

This is a suitable investment for all middle-class families with a small budget. Silver coins are available in a range of weights, starting from as low as 1 gram. You can easily buy silver coins from banks or jewellers in Aizawl.

Futures contracts

You can trade silver in the commodity market through silver futures. These contracts are essentially a promise of buying or selling silver at a fixed price at a specific date in the future. You can trade silver futures on a futures exchange like the Multi Commodity Exchange or the National Commodity and Derivatives Exchange (NCDEX) (MCX).

ETFs

Silver exchange-traded funds invest the pooled money in raw silver or silver-related instruments. These funds offer long-term diversification and are held in trust by the fund managers. You need to open a Demat account to invest in silver ETFs.

Silver Mutual Funds

With the help of a silver mutual fund, you can invest in a variety of silver-related assets, including silver exchange-traded funds and mining companies (ETFs). By pooling your funds with other investors and buying shares through a mutual fund company or a financial advisor, you can invest in a silver mutual fund.

Paper Silver vs Physical Silver

Paper silver and physical silver both have their advantages and disadvantages. You can have a physical holding of your investment in physical silver, while paper silver is invested online. Both these forms differ in the following ways:

Counterparty risk

Paper silver is mostly invested in trust with fund managers, brokers, or other financial instruments. So, it has counterparty risk, while physical silver doesn't.

Security

As paper silver is invested online, it comes with online security risks, such as password attacks, malware, etc. Physical silver is considered a safer investment.

Affordability

Paper silver invests in raw silver, so the final value is evaluated for pure metal. Physical silver is more expensive than paper silver due to additional design and making charges.

Profitability

In physical silver, you can only earn a profit when prices are high. When you invest in paper silver, you can predict market fluctuations and retrieve your potential profit in time.

Storage

Physical silver requires storage because it tarnishes easily. On the other hand, paper silver is stored online and does not require physical storage to keep them.

Impact of GST on Silver Rate in Aizawl

If the central government changes any policy or update the rules and regulation, it directly affects the silver price in Aizawl. Any type of precious metal investment is taxable. Silver jewellery is subject to a GST (Goods and Services Tax) of about 3%. The making fees, applicable hallmarking fees, and the Goods and Services Tax are all included in the price you pay for silver jewellery (GST).

Comparison between Gold and Silver in Aizawl

Investors diversify their investment portfolio by using precious metals like gold and silver in Aizawl. Both these metals provide a hedge against market volatility. However, it differs in various ways that are discussed below.

Volatility

Silver is more volatile than gold due to its high demand in various industrial sectors. During times of economic crisis, silver rates get affected in Aizawl. In comparison, gold stays stable as it is the more favoured investment choice. So, silver is a riskier investment than gold but can also give higher returns in the long term.

Liquidity

You can quickly liquidate both these metals without impacting the asset's actual value in the market. However, gold is a more liquid asset due to its higher demand in retail and some industrial sectors.

Demand

Gold and silver both have high demand in the local and global markets. Gold is extensively used in retail and the thermal and electronic industries. At the same time, most of the mined silver is used in electronics, automobiles, medicine, etc.

Storage

Silver is dense and can easily tarnish, so it requires extensive and expensive storage.
Affordability: Silver is cheaper than gold, so it is said to be more affordable than gold.