Silver Rate Today in Tenkasi

Tenkasi is a historic town located in the Tirunelveli district of the Indian state of Tamil Nadu. The town is known for its rich cultural heritage and its history of gold investment and trade.

Tenkasi is a town with a rich history of gold investment and trade, and it continues to be a popular destination for those looking to invest in this precious metal. Whether you prefer traditional gold products or digital investment options, the town has something to offer to everyone looking to invest in gold.

Factors affecting Silver Prices in Tenkasi 

• Supply and Demand: Supply and demand affect silver prices. During the festive season, there is a surge in the demand for silver in the market which in turn raises the price. In religious sites like Tenkasi, silver idols and coins with images of gods are in high demand. 
• Technology: Due to technological development, the demand for silver has risen. Modern technologies require silver in coating various parts. The rise in demand for solar panels and green energy will create more demand for silver in the future.  
• Inflation: Silver and gold are seen as safe havens for investment. They help fight against inflation. Higher inflation increases silver's value and protects against such losses in purchasing power.
• Gold Prices: It is generally seen that as the price of gold moves up or down, silver prices follow. Gold price movements are used to study and predict silver's value in the market. That's because as the price of gold rises, more people want to invest in the asset. But not everyone can afford gold. So, many settle for silver, raising the demand for silver and its prices in tandem with gold.
• Geopolitical Events: Geopolitical events like war and pandemics also have a significant impact on the price of silver. Such events make it difficult for silver supplies to reach their destinations smoothly, raising demand and also prices. And events like the pandemic could also decrease the industrial demand for silver because people stop buying things. This could also impact silver demand and prices. 

Various Taxes on Silver

Here are some of the taxes levied on silver. 

• GST: The Goods and Services Tax is levied on Silver. In India, the GST on the purchase of Silver is 3% and 5% on the making charges. 
• Capital gains: You need to pay taxes on the gain in the value of silver over time. If you are selling the ornament after 36 months of its purchase, then it will be treated as a long-term capital gain. The long-term capital gain is charged at 20.8% with indexation. If you sell silver before 36 months of its purchase, then it will be treated as short-term capital gain and the short-term capital gain is charged as per your income tax slab. 
• Tax-Free Silver: Gifting silver is tax-free. Silver gifted by family and friends during your marriage doesn't attract taxes. But if someone who is not related to you gifts you silver on an occasion other than your marriage, you may be liable to pay taxes. 

Some Amazing Facts about Silver

• India is the largest consumer of the world’s silver and we can consume as much as one-third of all the silver produced around the world in one year. 
• Gold medals which are given to winners in international events including the Olympics are silver coins coated in gold. 
• India produces about 10 million ounces of silver every year. 
• Mexico and Peru are the largest silver producers in the world. 
• Ancient Egyptians valued silver much more highly than gold.

Why is the demand for silver rising? 

Silver is one of the many metals that are scarce in nature. It is commonly used in making jewellery and is also seen as an investment option.

It is also a key element in the production of films in the photography industry. It is used in making utensils and silver-coated products in the automotive and electronic industries. All these industries drive the demand for silver which affects the commodity's price.

Silver is also being used in various up-and-coming industries like solar panels, and 5G transmission. etc. This is only going to drive the demand for silver in the future.