Silver Rate in Haryana

Lately, modern industries have also relied on silver for the production of automobiles, computers, and batteries. In fact, 56% of the total supply of this metal goes for industrial use. 

 

This is why the prices of silver are generally linked with the state of polity and economy and fluctuate accordingly. There are various factors that influence the silver prices in Haryana and these are as follows. 

• Purity of Silver

Just like gold, the purity of the white metal also determines the price of silver in Haryana. For instance, Grade 9999 of silver, as categorised by the Bureau of Indian Standards (BIS), is the purest form of silver you can buy.

 

Its prices will be higher than Grade 9250, i.e., sterling silver as it will have 7.50% of zinc or copper mixed in it. 

• Demand and Supply

The free market is the reality of today’s world where the price of every commodity is determined by the demand and supply forces. The rates of silver in Haryana also depend on these two factors: 

 

The demand for the metal in the market 

The efficiency of the global as well as local supply chain  

 

If the demand for the metal increases, the prices may also rise and vice versa. On the other hand, if the demand remains constant and the supply enhances, today’s silver price in Haryana may fall.  

• Inflation Rates 

In times of inflation, investors seek to protect their wealth against the rising prices by investing in silver. Hard assets are considered a great hedge against inflation as they have generally provided higher returns during high inflationary periods. As the inflation rates rise, investors prefer to invest in hard assets. 

 

This in turn drives their prices upwards due to increased demand. On the other hand, there are plenty of other investment options available to investors when inflation rates lower. So, in such a case, the demand for this white metal will decrease which will ultimately bring down the silver price in Haryana today.

• US Dollar’s Strength 

The value of the US Dollar in comparison to other currencies also influences the silver rate in Haryana. If the US Dollar strengthens against other currencies, the prices of silver also soar. On the other hand, when the value of the US Dollar depreciates, the silver prices may dip.

• Central Bank Policies

Central banks control the credit and money supply in the country and its policies have a significant bearing on silver prices. For instance, the revisions made by the Reserve Bank of India (RBI) in its monetary policy influence the price of silver in Haryana.

 

Moreover, just like gold reserves, the RBI also keeps silver bullion. When it decides to sell a portion of this bullion, the rates of silver fall. On the other hand, if the RBI seeks to buy large quantities of silver, today's silver rate in Haryana will go up. 

• National and Supra-national Economic and Political Trends

Policial aggression or wars impact the economic activities in the region and raise inflation. In addition, people lose trust in traditional and market-linked investment schemes as their returns fall. 

This pushes people to invest in hard assets to hedge against inflation. As the demand for the metal increases, its prices also rise. On the other hand, if there is economic certainty and stability, the demand for silver would be less and so would the silver prices in Haryana. 

• Interest Rates

Inflation rates are considered to signify the mood of an economy. If the inflation rates are low, the credentials of the economy would be strong. In such a case, Haryana’s silver price would be lower as people would prefer other investment options.

 

However, if the interest rates offered on other investment avenues decline, people will shift towards hard metal, driving its demand and Haryana’s silver prices higher.

• Taxation

When you buy silver in any form, the government levies taxation on it. Before 2017, while the central government charged a 1% excise duty, state governments levied 1% of value-added tax (VAT). 

 

With the introduction of GST in 2017, you have to pay a 3% GST on silver prices in Haryana.

 

In conclusion, if you have decided to invest in silver, the first thing you must do is check the current rate of silver in Haryana. This would allow you to determine the volume you can buy in a given amount.

 

In addition to this, remember that silver rates in Haryana fluctuate on a daily basis. So, it is important to assess these factors before you buy or sell your holdings in silver.