Silver Rate Today in Indore

What sets the silver price

Silver is both a precious metal and an industrial one, and that double life makes it more volatile than gold. Roughly half of annual demand comes from industry — solar panels, electronics, brazing alloys, medical uses — so an industrial slowdown hits silver in a way it does not hit gold. The other half is investment and jewellery. Add the rupee and import duty on top, as with gold.

How silver is sold in India

Retail silver is quoted per kilogram for bars and per gram for jewellery and coins. Fine silver is 999 — 99.9% pure — and is what bars and coins are made from. Sterling silver is 925, alloyed with copper for strength, and is what most jewellery and tableware uses. Utensils are often 900 or lower.

The gold-to-silver ratio

Divide the gold price by the silver price and you get a number traders watch closely. Over the last century it has mostly sat between 40 and 80; when it stretches well beyond that, silver is historically cheap relative to gold. It is a rule of thumb, not a signal — the ratio has stayed stretched for years at a time.

Storage, and why it matters more than for gold

A lakh of rupees in silver is bulky and heavy where the same value in gold fits in a pocket. Silver also tarnishes, which is cosmetic rather than a loss of value but affects resale presentation. For investment quantities, silver ETFs avoid the problem entirely.

Tax on silver

Silver is a capital asset. Gains on physical silver held for more than two years are long-term; held for less, they are added to your income and taxed at your slab rate. The dealer will also report large cash purchases, so keep the invoice.

Frequently asked questions