Silver Rate Today in Karnataka

Karnataka, a state located in the southern part of the country, has a few silver mines. The district of Raichur, in the mineral-rich state of Karnataka, is famous for its silver deposits. The state also has many manufacturing industries that manufacture silver articles.

Some Interesting Facts On Silver And Silver Rates For Karnataka Vs Other Cities

India is known to be the largest consumer of silver in the world. Silver prices have been steadily increasing after the pandemic, which has attracted people's attention.

• Silver has also found applications in chemical processes. It's used as a catalyst for treating infections and wounds etc.
• In daily life, we use silver for numerous things. For example, silver is used widely in electronic components such as circuit boards, wires, and switches and inside several microelectronic devices including smartphones. These are squeezed into the tiniest spaces without the risk of breakage.
• Silver is a vital part of numerous green technologies as investments in decarbonisation and electrification projects continue to gain momentum across the world.
• It is used in the automotive as well as electrical industries.

Comparison Between Gold And Silver In Karnataka

Gold and silver have vastly different prices. The price of these metals is determined by certain factors like production, demand etc. In the rocks underneath the crust, these precious metals lie. The average availability of gold is 0.004 ppm (parts per million). However, the average availability of silver is around 0.07 ppm (parts per million). This leads to increased production and a lower price. Silver is also obtained as a by-product of other metals.

The consumption of gold is higher in the southern part of India compared to other cities. The demand is high for jewellery, coins and biscuits. Also, the demand for silver has been increasing for a few years. Silver is considered a good investment option.

Silver Vs Other Investment Options In Karnataka

Silver is an ideal investment because it is affordable. The difference between investing in silver and other commodities is their utility. Commodity investments are based on supply and demand. While in the case of silver and gold (as precious metals) demand and supply are not the only driving factors. They usually have low industrial utility. Yet silver has more industrial uses than gold. Almost half of all silver mined is used commercially, with applications ranging from dentistry to electronics.  

Paper Silver Vs Physical Silver

Investing in physical silver refers to buying the metal in bulk. It can be bought in the form of jewellery or other silver articles. Paper silver is considered a non-tangible asset, and it reflects the price of silver not backed by real silver. The paper silver market is believed to be much larger than the physical silver market in all parts of the world. The trading volume ratio for Paper to Physical silver is around 243:1.

How Is the Purity of Silver Evaluated In Karnataka?

The purity of silver is termed "millesimal fineness". It is based on parts of metal per thousand. For example, if the given silver article has a fineness of 998, then it consists of 998 parts of silver and 2 parts of adulterated metal. The purity is confirmed by the presence of hallmarks stamped on the metal itself. Fine silver, having 99.9% of silver (fineness-999), is considered to be the purest form of physical silver.

Understanding The Demand For Silver In Karnataka

Silver demand is increasing in our country. However, the pandemic adversely affected the growth rate but it's back on track in 2022. Karnataka accounts for over 2% of the native silver produced in the country. 

The demand for silver in the state is relatively high. The state's capital, Bangalore, has the second-largest silver market in southern India. Silver is also a popular form of investment for those who reside there. Silver's increasing demand as an investment, jewellery and industrial metal influences its price heavily.

Impact Of GST On Silver Rate In Karnataka

After GST was implemented, the silver industry was charged a 3% tax on its finished goods. A 5% GST is levied on the making charges of jewellery.