Silver Rate Today in Kerala

Kerala, the spice state, is located on the Malabar Coast and is widely known for its palm trees, beaches and backwaters. It boasts an incredibly high Human Development Index (HDI) and has one of the highest literacy rates in the country. With stable income levels, residents here like to invest their spare funds in various assets, including silver.

If you are also an investor based out of Kerala, having silver in your portfolio will be wise. Read on to learn more about silver rates in Kerala and which factors affect the price changes.

Key Interesting Facts on Silver Rates in Kerala vs Other Areas

• Silver tarnishes only when it is not worn. It is observed that silver that is locked inside a box fades and loses its shine quicker than that of the one which is used daily. This is why silver jewellery is often given in zip-lock bags instead of traditional boxes.
• Investing in silver can help significantly diversify your investment portfolio. Researchers are gradually moving towards adding silver as an ‘inflation hedge’. Although, the road to it is long. It must be kept in mind that silver has demonstrated mixed results in the past and is very volatile.
• The word ‘silver’ is derived from the Latin word, ‘Argentum’, which means ‘white’ or ‘shining’. This is what makes silver a much-loved fashion accessory. The earliest origins of silver date back to 3000 B.C.
• Silver’s relativity to gold is tested using the infamous ‘gold-to-silver ratio’, which helps determine whether it is a good time to buy silver compared to the yellow metal. The ratio also measures how many units of silver it would require to buy one unit of gold.

Factors to Consider While Buying Silver in Kerala

As stated in the notification released by the Government of India in 2005, the silver was also allowed to be hallmarked. This was to ensure the quality and purity of silver in the country and reduce forgery. Many jewellers in Kerala prefer to sell hallmarked silver to enhance customers’ trust in their products.

There are a couple of factors that must be kept in mind when buying hallmarked silver jewellery:

• BIS Mark
  BIS is the only authorised laboratory in India for silver authentication. BIS mark on silver jewellery ensures it is original and comes from a reliable source.
• .999 silver
  .999 silver, i.e., 99.9% silver, is the purest silver form. It is used in silver bullion. However, owing to its softness and malleability, it is typically alloyed to make jewellery.  .925 silver, also known as sterling silver,  is commonly used for this purpose.
• Jeweller's Identification Mark
  Jewellery merchants (such as Tanishq and PCJ Jewellers) often have their own identification marks.

Digital Silver vs Physical Silver

Kerala, one of India's major commercial trade centres, offers a wealth of silver investment options:

• Jewellery, in many areas of Kerala, is considered a sign of auspiciousness, especially during wedding ceremonies and other important occasions. They are also considered an investment for portfolio diversification. Silver bullion and coins are also great ways to invest in silver.
• The people of Kerala also invest in other forms of silver besides physical silver. Several silver investment options are available, such as silver equity-traded funds (ETFs), digital silver, and silver mutual funds.
• Individual investors mainly favour silver ETFs owing to their huge market and reflect the current prices without distortions relating to geographic location or other demand-supply factors.

How does GST Impact Silver Rate in Kerala

The Goods and Services Tax (GST) introduced in June 2017 mentioned slabs under which taxes were to be levied on various items. Under this, all precious metals, including gold and silver, were subjected to a GST rate of 3%. Additionally, a  5% GST charge is levied as making charges for intricate jewellery and artefacts.

Apart from this, specific import duties also apply to silver imports to India. These are as follows:

• Customs Duty - 12.5%
• Agriculture Infrastructure and Development Cess (AIDC) - 2.5%
• Social Welfare Surcharge - 10% of Customs Duty

Comprehending .925 and .999 Silver in Kerala: Which is Better?

Similar to other precious metals, the price of silver also varies according to its grade or purity. According to the Silver Institute, the purest form of silver is .999 silver, which is very soft, malleable and easily prone to damage. It is used in silver bullion bars. .925 silver, also known as sterling silver, is the most durable and commonly used silver grade. It is used in manufacturing jewellery, artefacts, and coins owing to its long-lasting efficiency. 

• .999 Silver implies that the piece is made up of 99.9% silver. It is soft and malleable but cannot be used for drawing intricate designs owing to its durability. Hence, it is barely used for bullion bars and to store silver in its purest and authentic form.
• .925 Silver is 92% silver, used for making beautiful, handcrafted jewellery. It is harder in comparison to.999 silver and helps artisans create nicely detailed jewellery designs.