Silver Rate in Pune

• Silver’s Purity

One of the major factors that affect the price of silver in Pune is the purity of the metal. The finest grade of silver will cost you more compared to the one mixed with other metals like zinc and copper.

 

As per the Bureau of Indian Standards (BIS), Grade 9999 is the purest form of silver available in the market. The price of this grade of silver will be higher. However, if you purchase silver of 9250 Grade, it will only have 92.50% of pure silver and hence, it will be cheaper as compared to Grade 9999. 

• Demand and Supply Metrics

The demand and supply forces determine the price of almost every commodity. This is the case with silver too. For instance, if the demand for the metal goes up, the silver price in Pune will also rise, and vice versa.

 

On the other hand, if there are bottlenecks in the global or local supply of silver, the prices of this hard asset will hike. Alternatively, the prices will witness a fall if the supply of silver remains stagnant or lowers.

• Inflation

Investment in silver is considered as a hedge against inflation and hence, it is advisable to invest in hard assets to secure your savings. When the inflation rates rise, the silver prices in Pune tanks. Alternatively, when inflationary forces ease, the rate of silver also goes up. 

• Strength of the US Dollar

The valuation of the US Dollar is directly related to the silver prices. For instance, if the value of the US Dollar appreciates, the silver rate in Pune today will rise. However, if the US Dollar devalues in comparison to other currencies, the price of silver dips.

• Political and Economic Trends

The geopolitical events also have a significant impact on silver prices. When there is political and economic instability, people tend to invest in hard assets. This pushes the silver prices upwards. However, in a stable economic climate, the silver prices remain stagnant or even fall.

• Central Bank Policies

Central Banks maintain the credit and monetary policy of a country. For instance, the Reserve Bank of India periodically reviews and revises monetary policy. Such revisions also have an impact on silver price in Pune.  

 

Just like gold, the Central Banks also maintain silver reserves with them. If the Central Bank decides to purchase silver bullion, the silver prices rise, and vice versa.

• Large Private Institutional Investors

Investments made by large institutional investors also impact the silver rate in Pune. For instance, if an investor decides to sell silver in large quantities, it may cause a sudden decrease in silver prices, due to the increased availability or supply. 

 

On the other hand, the silver rate in Pune may rise if a large investor decides to purchase this metal. 

• Gold Prices

Historically, the silver prices have always followed the path set by the gold prices. So, if the gold prices rise, the silver prices in Pune will also rally behind. On the other hand, if gold prices fall, the silver rates will also decrease subsequently. 

• Industrial Demand 

Silver has become an important component used in modern industries because of its superconductor qualities. It has been increasingly used in sectors related to automobiles, batteries, computers, etc.

 

Increasing industrial demand has been one of the reasons why silver prices have been increasing constantly in recent years.

• Interest Rates

Interest rates are directly linked with the repo rate that Central Banks notify periodically. The Central Bank fixes these rates based on the prevailing economic situation.

 

So, if the interest rate is high, people tend to invest in investment options other than hard assets. This causes a decline in the silver price in Pune too. On the other hand, if interest rates are low, people find hard assets a more attractive investment option. This inflates the demand for the metal and increases its price. 

 

In conclusion, silver is a great option for investment if you are planning to invest in hard assets in Pune. However, you must check today’s silver rate in Pune before investing in this precious metal.