Silver Rate In Chennai

Introduction

Chennai, the capital city of Tamil Nadu has had a proven love for silver like no other in India. Silver is one of the most demanded commodities as the people of Chennai consider it to be a good investment option. Investors mainly look for attractive returns while trying to resell it in the long run. Because silver is far more affordable as compared to gold, people invest in this precious metal for the financial stability it can offer even in case there is a crisis.

Which factors affect silver prices in Chennai?

Some of the factors which have a direct impact on silver rates in Chennai are listed here:

• Demand and supply: Historically, in India and specifically in Chennai, silver demand has far exceeded its supply. This has led to a spike in the rate of this precious metal over the years.
• Industrial demand: Silver is demanded in the form of jewellery in Chennai and it is also heavily used for manufacturing different medical, utensils and other items. This has resulted in a rise in the demand for silver, specifically in the industrial sector. Thus, silver has become an important commodity in the southern region which has led to regular price fluctuations.
• Inflation: Since Chennai has faced the flak of inflation over the years, the silver rate too has witnessed many changes. This is primarily because silver is used as a hedge against inflation. Thus, when the inflation swings upwards, the silver rate also tends to rise.
• US dollar rate: Silver rate is inversely proportional to the rate of the US dollar. As soon as the US dollar turns stronger, the silver rates start to dip in Chennai and vice versa. This inverse relation is a result of the buying habits of people as they tend to buy commodities which are expected to increase in value.
• Import duty: Chennai silver consumption is met by heavy imports of silver. Thus, any fluctuations in the import duty tend to have an impact on silver prices in the city.
• Bullion rate: Silver rate in Chennai runs parallel to the price of the bullion. As soon as gold rates dip, the city sees a reduction in silver rates too.

Because of the above-mentioned factors, the silver prices in Chennai keep changing on a daily basis and are fixed by the Indian Bullion and Jewellers Association Ltd. This organisation is made up of members who procure the ‘buy’ and ‘sell’ quotes from influential silver jewellers across the country. They then decide upon the daily silver rate for the country.

What silver investment options are available in Chennai?

Chennai is one of the country’s topmost consumers of silver. People purchase this precious metal in the form of jewellery, silverware, etc, and also various gift articles made of silver. Chennai is a religious city and therefore, silver carries a high cultural value apart from being looked at as an investment option. People in Chennai consider silver investments as a safe avenue. Whether it is the middle-class or the lower-income segments, everyone loves to buy silver for its higher expected value at the time of resale.

Here are the various forms of silver which are preferred by people in Chennai.

Silver coins: Silver coins are considered as an ideal gift option by locals in Chennai. These are purchased on birthdays, anniversaries and even to celebrate any traditional festival. Silver coins can be purchased from different banks in Chennai, silver jewellery or online silver stores. Coins can be bought in various shapes, different weights and purity levels. The price varies as per these characteristics of the item bought.

Silver jewellery: Women in Chennai are fond of silver jewellery. Attractive designs are available across Chennai in earrings, neckpieces, rings, bracelets, etc. Similar to coins, silver jewellery also comes in different shapes, sizes, purity, and weight. The silver demand generally picks up at the time of festivals and wedding season in Chennai.

Silver bars: Silver bars are frequently bought as a preferred investment option in Chennai. These are very easily available and since they come in various sizes, they are affordable too. Silver bars can be bought from different silver stores and also banks in Chennai.

Silver trading: One popular option of investing in silver is through the trading route. It can be done electronically via exchanges like MCX or Multi-Commodity Exchange in India. For silver trading, it is mandatory to hold an individual Demat account in Chennai.

Silver Demand and Supply in Chennai

Silver is primarily a by-product of different metal production processes. By-product silver contributes to nearly 80% of the entire silver available in the world. India is known to have bought large silver reserves for meeting domestic demand and also catering to global needs.

Silver demand and supply in Chennai has a direct influence on the daily rates. As trends suggest, the demand for silver always exceeds its supply. This has resulted in Chennai silver prices going up in the last few years.

Factors to Consider Before Buying Silver

Here are some of the important aspects to consider before purchasing silver in Chennai:

• Buyback: In Chennai, a lot of jewellers offer an option to buyback silver i.e. investors can get old silver jewellery replaced by a new one. Buyback option allows people to purchase the latest jewellery designs without having to spend cash to buy the same. However, reselling silver jewellery is always based on its weight. This factor should be considered while exchanging old silver for new.
• Online shopping: While buying silver jewellery or other forms online in Chennai, it is important to make sure that it is being bought from a reputed jewellery enterprise. Also, make sure to check on the daily silver rate in Chennai. This will ensure that you don’t end up paying a higher amount than the prevailing silver rates.
• Look for the hallmark: Always buy silver which is BIS certified. Look for below marks while buying silver:
  • Purity
  • BIS mark
  • Identification mark of Assay centre
  • Marking Year
  • Jeweller/ manufacturer’s identification mark

Request invoice: Silver purchase must always be a transparent process. To ensure this, always ask for the invoice. For future resale of silver, the invoice will be useful and can act as a proof of the exact specifications of the silver form.

Where to buy silver in Chennai?

Several silver dealers can be found in Chennai. Some of the major silver dealers include Vummidi Silverware, GRT, SLN Bullion, Tanishq, Khazana Jewellers, N. Gopaldas, etc. These silver jewellers offer various silver items like jewellery, coins, ornaments, bars, gifts, silverware etc. They offer silver at the prevailing price. The price could differ across products especially if you compare jewellery to bar form since jewellery will have additional making charges.

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