Gold and silver have distinctly different significances in Karnataka. While gold is majorly used for jewellery than trading purposes, silver holds importance as an investment option. The state of Karnataka is one of the leading importers of the white metal in the world, importing a considerable percentage of the world’s silver. Like all places across the world, the global demand and supply for silver is one of the primary factors that determine the daily silver rate in Karnataka. It is one of the most valuable metals, second only to gold, not only in terms of its importance, but abundance as well.
Silver rate in Karnataka, as applicable to all states in India, fluctuates due to several international and national factors, specifically those related to economy. Below are the predominant parameters that affect silver rate in Karnataka:
Higher import costs: The taxes levied on gold imports in India increase the silver rate in India, which is applicable to Karnataka as well. What’s more, the higher conversion rate of US dollar to the Indian Rupee further pushes up the silver rate in Karnataka.
Demand from industries: Silver faces comparatively more demand from industries than from jewellers. Some of the industries that require silver for the manufacturing of its products are electronic appliances like touchscreen mobile phone and television as well as solar panels, RIFD chips, manufacture of medicine, etc.
Silver as an investment: Though the demand for silver is not as high as gold in terms of its investment prospects, it remains a good long term investment. The rising cost of silver is the result of its falling reserves and increasing demand.
Silver is a versatile metal. The following are the ways in which an investor can invest in silver in Karnataka:
Silver jewellery: Silver is an important part of the jewellery industry for both men and women. It has a wider demand because it is comparatively less expensive than its gold counterpart.
Coins and bars: Silver coins are a good investment option as it is affordable and can be purchased at a few hundred rupees, depending on the weight. It achieves steady capital appreciation over the long term, and that too without being exposed to the volatility of the capital market. As an investment, coins and bars are a more preferred option as it does not involve the 15% melting charge that is applicable to silver jewellery.
Household items: Silver is considered to be auspicious and is an integral part of Indian festivities.
Silver coins are considered to be an auspicious part of festivals in Karnataka. There are two channels through which you can invest in silver coins and bars:
Jewellers - Silver jewellery and coins are available in varied weights, which enable individuals to invest in them as per their budget. Silver jewellery prices also depend on the intricacy of designs. Therefore, buyers have the flexibility to choose the design and weight. Leading jewellery brands offer customers the convenience of purchasing silver coins and bars online.
Banks - Banks and non-banking financial institutions also offer silver bars and coins. However, extra charges like damage-proof packaging, etc. are added over and above the base price of the metal, as per the ongoing silver rate in Karnataka. Investors should emphasize on a purity certificate, which involves further charges. This eats into the profit margin of the return on investment.
However, despite the increased price, purchasing from an investor is also less risky, making buying from a jeweller a comparatively better investment option.
Trend of Silver Rate in Karnataka for July 2019 (rates per kg)
| 1st July 2019 | Rs.40,578 |
| 31st July 2019 | Rs. 44,965 |
| Highest Price on July | Rs.44,965/- per kg |
| Lowest Price on July | Rs.40,560/- per kg |
| Overall Performance | On the rise |
| Percentage Change | +10.81% |
Trend of Silver Rate in Karnataka for June 2019 (rates per kg)
| Silver Rates | 1 Kg |
| 1st June rate | Rs.39,600 |
| 30th June rate | Rs.40,500 |
| Highest rate in June | Rs.40,500 on June 29 |
| Lowest rate in June | Rs.39,450 on June 2 |
| Overall performance | Rising |
| % Change | +2.27% |
Trend of Silver Rate in Karnataka for May 2019 (rates per kg)
| Silver Rates | 1 Kg |
| 1st May rate | Rs.40,500 |
| 31st May rate | Rs.39,500 |
| Highest rate in May | Rs.40,700 on May 3 |
| Lowest rate in May | Rs.39,360 on May 25 |
| Overall performance | Falling |
| % Change | -2.47% |
Trend of Silver Rate in Karnataka for April 2019 (rates per kg)
| Silver Rates | 1 Kg |
| 1st April rate | Rs.40,647 |
| 30th April rate | Rs.40,000 |
| Highest rate in April | Rs.40,863 on April 10 |
| Lowest rate in April | Rs.40,000 on April 23 |
| Overall performance | Falling |
| % Change | -1.59% |
Trend of Silver Rate in Karnataka for March 2019 (rates per kg)
| Silver Rates | 1 Kg |
| 1st March rate | Rs.43,300 |
| 31st March rate | Rs.41,500 |
| Highest rate in March | Rs.43,300 on March 1 |
| Lowest rate in March | Rs.41,100 on March 8 |
| Overall performance | Falling |
| % Change | -4.16% |
Trend of Silver Rate in Karnataka for February 2019 (rates per kg)
| Silver Rates | 1 Kg |
| 1st February rate | Rs.41,450 |
| 28th February rate | Rs.43,300 |
| Highest rate in February | Rs.43,700 on February 26 |
| Lowest rate in February | Rs.41,300 on February 4 |
| Overall performance | Rising |
| % Change | +4.46% |
With effect from 1st July, 2017, a GST rate of 3% is applicable on silver. It is believed that the increase of the GST rate would encourage unorganized players to enter the organized market.
The current silver rate in India determines the price that you will have to pay for your investment in silver, as per its weight, intricacy of silver jewellery, extra charges (if any), etc. For instance, if you are an inhabitant of Karnataka, it is essential for you to check the silver rate in Karnataka, which will be the same for all of India, before you invest in silver. Otherwise, you may be overcharged for your investment.
BIS or Bureau of Indian Standards is the institution that is authorized with the responsibility to oversee and ensure the purity of silver in India through hallmarking. Hallmarking is the procedure followed to record and analyze the quality of the metal constituent in silver or gold. The first company in India that was founded to offer 999 BIS Hallmarked Silver Coins was FX Global Metal Corporation.
Silver purchased from banks are perceived to be more reliable in terms of its purity than from jewellers, despite silver from banks being more expensive because it involves extraneous charges. Silver investments from banks are also less risky because they are accompanied with a purity certificate that is a proof of their quality, as notified by the relevant bank and an external agency.
The Hallmark scheme was launched by Bureau of Indian Standards for silver in 2005 under IS 2112. A hallmarked silver item will consist of
Below are the points you should consider while buying silver:
Be aware of the ongoing silver rate in Karnataka – Make sure that you know the prevailing silver rate in Karnataka when you invest in silver. This will enable you to ensure that you are not overcharged for your investment.
Know your investment objectives – The type of silver you should invest in – jewellery, coins, bars or household items, etc. – determines what you are aiming to achieve through the purchase or investment. Jewellery is best as a long term investment as it is more expensive than silver coins due to the 15% making charge. Silver bars are a preferred option for seasoned investors. Consider these factors to take a well-informed decision.
Ensure certification – Certifications and hallmarks are a proof of the quality of silver an individual is investing in. Check that the silver that you invest in bears the BIS hallmark, mark of the relevant jeweller, mark of the Government of India, year of marking and purity grade. Be doubly sure for online purchases – Online availability of silver in all forms have made its purchase hassle-free for customers. However, you are unable to check its quality and weight physically, and hence you must emphasize on the necessary hallmarks and certifications before the purchase. You should also make sure that you opt only for certified sellers.
Purchasing quality silver is no longer a challenge as it was before. With the establishment of BIS or Bureau of Indian Standards, the process of marketing has become streamlined. This body keeps a strict watch on the quality of the silver being sold. Another new development has been the online availability of the metal, thanks to digitalization. As an investor in Karnataka, you need to know the ongoing silver rate in Karnataka and emphasize on the necessary hallmarks, proof of its grade and certifications to ensure that you are investing in quality silver.
What is the per gram silver rate in Karnataka?
The per gram silver rate in Karnataka, as on 14th August 2019, is Rs. 47.26.
What is 10 gram silver rate in Karnataka?
The silver rate in Karnataka for 10 grams, as on 14th August 2019, is Rs. 472.60.
What is 100 gram silver rate in Karnataka?
The silver rate in Karnataka per 100 grams, as on 14th August 2019, is Rs. 4726.00.
What is 1 kg silver rate in Karnataka?
The silver rate in Karnataka per 1 kg, as on 14th August 2019, is Rs. 47262.00
What is 10 kg silver rate in Karnataka?
The silver rate in Karnataka per 10 kg, as on 14th August 2019, is Rs. 472620.00
