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While gold is a popular investment option for many, silver is a close second. People prefer these metals as they have excellent potential to generate returns in the long run. In addition, the rising silver rate in Bangalore and other cities points to an opportunity of securing better returns.

 

But like any investment, looking at the prices and knowing what affects them is crucial. Having this information can help you ensure that your investment aligns with your goals and finances. This way, you make the most of your investment and secure your financial growth.

 

From the local taxes to the global economic climate, the silver rate today in Bangalore and other cities is influenced by numerous factors. Read on to know the current silver rate in Bangalore and the factors that affect these prices.

Silver Price Per Gram in Bangalore

Given below is an overview of today’s silver rate in Bangalore for different quantities.

Quantity of Silver (in grams)

Silver Price in Bangalore 

1

₹72.50

10

₹725.00

100

₹7,250.00

1000 (1 kg)

₹72,500.00

Disclaimer: The above silver price in Bangalore is as of Feb 23, 2024, and is subject to change.

Silver Rate in Bangalore for the Last 10 Days

Given below is an overview of the silver price in Bangalore for the last ten days.

 

Date

 

1 Gram Silver Price in UP

 

10-Gram Silver Price in UP

 

100 Gram Silver Price in UP

 

1000 Grams (1kg) Silver Price in UP

23-02-2024

₹72.50

₹725.00

₹7,250.00

₹72,500.0

22-02-2024

₹72.40

₹724.00

₹7,240.00

₹72,400.0

21-02-2024

₹72.50

₹725.00

₹7,250.00

₹72,500.0

20-02-2024

 72.50

₹725.00

₹7,250.00

₹72,500.00

19-02-2024

 73.00

₹730.00

₹7,300.00

₹73,000.00

18-02-2024

 73.00

₹730.00

₹7,300.00

₹73,000.00

17-02-2024

 73.00

₹730.00

₹7,300.00

₹73,000.00

16-02-2024

 70.90

₹709.00

₹7,090.00

₹70,900.00

15-02-2024

 71.00

₹710.00

₹7,100.00

₹71,000.00

14-02-2024

₹72.85

₹728.50

₹7,285.00

₹72,850.0

Disclaimer: The above prices are as of Feb 23, 2024.  

Factors Impacting Silver Rates in Bangalore

  • Supply and Demand 

The supply and demand ratio is one of the most basic yet the most influential factors affecting today’s silver rate in Bangalore and across the country. This impact is due to supply and demand being a basic economic concept affecting the cost of every commodity in the market.

When there is a demand for a commodity, and it is not met by the supply, the price tends to increase. Conversely, when there is supply but not enough demand, the price tends to dip. Given that precious metals are scarce, the supply is finite. As such, it generally leads to situations where the demand does not get met.

 

As a result, the price of gold and silver has seen a historically upward trend despite the daily fluctuations. To put this into perspective, the cost of 1 kg of silver in the 90s was around ₹60,000. However, today the cost of 1 kg silver is around ₹80,000. 

  •  Political Uncertainty

The geopolitical climate is one of the most influential factors affecting the silver cost in Bangalore and throughout the country. When there are political changes or issues in the country, the prices change as the changes and issues would either increase or decrease the demand for silver.

 

In addition to the national political uncertainty, the global economic situation also impacts the price of silver. An example is the Covid-19 pandemic and the uncertainty that came with it. During the pandemic, more people invested in silver due to metal’s ability to retain purchasing power in the long run.

 

This resulted in increased demand and therefore drove up the silver rate in Bangalore and other parts of the country. The yellow and white metals both saw a steep rise in their price during this time, and the trend that continues today.

  • Inflation

During inflation, the currency of any country, including India, sees a devaluation. This results in your money losing its purchasing power. Given that metals like silver retain their purchasing power, they allow you to get your money’s worth. 

 

As a result, they have become a great option as a hedge against inflation for many. When people start relying on silver during periods of inflation, they drive prices up due to the increased demand. 

  • US Dollar

The fluctuations in the value of USD have a major impact on the price of silver. The impact is inversely linked, which means that when USD goes down, you are likely to see a rise in the silver rate in Bangalore and other parts of the world.

 

This is because USD is the base currency for these precious metals, as they are generally bought in USD. Therefore, when the dollar weakens, purchasing silver becomes cheaper. This however leads to another issuer, as people tend to buy more silver during these times. As a result of more people buying the metal, demand increases, and the price soars again. 

  • Gold and Oil Prices

In simple terms, the price of gold has an impact on the price of silver because they both serve the same purpose. So, when people start buying gold, and there is an upward trend in the price of the yellow metal, the white metal is likely to follow.

 

The price of oil affects today’s silver rate in Bangalore because it is a metal that gets mined. This means that getting access to silver is an expensive process, requiring a large quantity of oil. So, when the price of oil goes up, the mining cost goes up, ultimately affecting the price of silver.

  • Taxes and Interest Rates

Silver is imported into India and is, therefore, subject to import duty and other taxes. These duties and taxes get added to the final cost of getting silver in the country. These hikes then affect the silver rate today in Bangalore per gram.

 

The cost of white metal also has an inverse relation with that of interest rates. This inverse relation is due to the fact that rates affect the return you get from interest-related investments. So, when the rates go down, investing in long-term appreciating assets becomes a more attractive choice and vice-versa.

 

Now that you know the silver price today in Bangalore and the factors that affect it, be sure to assess your finances, if you’re looking to invest in silver. Invest in different avenues - stocks, mutual funds, fixed deposits, and more to ensure that you have a diversified portfolio.

 

Portfolio diversification helps mitigate the risk and keep your investment secure. While investing in the white metal, check the current silver rate in Bangalore or other cities you are investing from. This will help gauge the right time to enter and exit the market and maximise your returns

Read More

FAQs on Silver Rate in Bangalore

The best option to invest in silver in Bangalore depends on your requirements. A few of the top options are coins, bars, ornaments, and jewellery. Keep in mind that buying ornaments and jewellery may cost extra due to the making charges that the jeweller will levy.

GST is a tax levied on the final cost you pay. As such, the cost becomes higher than the prevailing silver cost in Bangalore. For example, if the cost before tax is ₹80,000, adding 3% GST would mean that you will have to pay ₹82,400 in total.

Yes, the silver price differs for cities throughout the country. The difference is due to the import duty and taxes levied by the state and central government. The local taxes differ for every state, and therefore the city price of silver is different.

Silver in Bangalore is used in many forms - from jewellery to manufactured goods. This gives you numerous options to choose from and invest as per your needs.

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