We are not only considered crazy about buying gold, but also silver. With the amazing response we got on gold buyers guide with more that 100,000 page view, we embarked on to help our friends with the Silver buyers guide. We visited few store to understand the buying process and presenting few tips to do a effective silver buying.
Silver is very popular for traditionally as Indian women use toe rings, bracelets, muvvalu (gajjalu) during their weddings. Most popular are silver idols and silver ornaments are also used for pooja accessories. For those who can’t buy gold, silver their next best gift.
Silver is available in 3 forms in Indian Market.
1) 99.99% Pure
2) 92.5% pure (Also called sterling Silver)
3) 90% Pure
99.9% Silver: Coins are usually available in 99.99% purity and does not contain any traces of copper. Unlike gold, pure silver turns black when exposed to air for long durations due to formation of Silver oxide.So, the metal must be protected in closed containers
92.5% silver or popularly known as sterling silver is best known for silver ornaments. Silver ornaments available in market are usually 92.5% or 925 Sterling silver. Generally copper is mixed to make the metal suitable for making ornaments.
90% silver is used in ornaments like toe rings where more strength is brought to the metal by adding more copper.
Whether it is coins, sterling silver ornaments or other ornaments, pricing is no different from gold.
Pricing Silver ornaments:
if you buy a bar of silver, technically the silver should be 99.9% pure, no making charges or wastage charges and 1% VAT. If you are buying sterling silver, make sure the price used is 92.5% of the value of silver and similarly for 90% Silver.
Silver Wastage charges: The wastage and making charges (VA) for silver is seen at 22% in most of the store. Consumer can always bargain to get a better deal on wastage charges in silver.
VAT: Just like gold, there is a VAT of 1% on ornament jewellery with silver
So the price of your ornament is usually
92.5% of Silver current day price + 22% VA + 1% VAT
Where to buy Silver:
a) Silver can be bought at all popular jewellery stores like Kalyan Jewellers, Joyalukas, TBz,MBS, Chandan brothers etc.
b) You can also buy silver at MMTC
HYDERABAD REGIONAL OFFICE
10-2-1, 1st floor, APFDC Complex, A.C. Guards, Hyderabad – 550028
EPABX – 040-3394924, 3376900, 3394960, FAX – 3394923
E-mail : [email protected]
c) HDFC bank sells silver coins in the denominations of 50g and 100gm.
Other options to buy silver:
If you are planning to buy silver for investment purpose (which is not very common), you can get on to commodity futures in Silver. There are no silver ETFs in Indian market as of now.
Protecting the shiny metal: Silver changes color on exposure to air and build scratches easily. The metal also reacts with many chemicals and so one should be careful about protecting the metal properly. Silver ornaments should generally be stored in closed polythene bags without exposing them to air and should be cleaned with soft cloth.
Silver ornaments are also BIS certified. Please note the ornaments bought are at least BIS 925.
Happy Silver Buying
Please read our popular gold buyers guide for details on gold buying