Silver price today, Nov 13: MCX rate rises to Rs 1.63 lakh/kg; check prices in Delhi, Mumbai, Kolkata, Chennai

A stronger dollar makes silver more expensive for other currencies, which can affect demand and lower the price.

Silver continues to shine not just as a household essential but also as a key investment and industrial metal. On the Multi Commodity Exchange (MCX), the price of 999 purity silver stood at Rs 1,63,780 per kilogram at 9: a.m., on November 13, up 1.04 percent from yesterday’s close of Rs 1,62,091.

Silver prices vary by city. Check out below to see the price of gold where you live.

Factors that determine silver price in India

The demand and supply for the white metal determines its price. However, the price of silver is heavily dependent on other key factors including:

Strength of the U.S dollar: The price of silver is benchmarked against the U.S dollar when the bullion market opens. A stronger dollar makes silver more expensive for other currencies, which can affect demand and lower the price. A weaker dollar can make silver cheaper and drive prices up.

Demand for silver: Silver’s demand tends to go up across households, especially during festivals like Dussehra and Diwali, either for ornamental or decorative purposes. The white metal is also in high demand across renewable energy and hightech industries. Its prices also vary as per investment demand for physical silver, silver ETFs offered by companies listed on stock exchanges, as well as trading of silver futures and options trading on commodity exchanges, like the MCX.

Silver production capacity: In order to meet the demand of silver across key sectors, miners like Hindustan Zinc, need to ensure it fulfills the order. Notably, about 70 percent of silver is a by-product of mining other base metals, like lead, zinc, and copper. Major India states producing silver include Rajasthan, Jharkhand, Andhra Pradesh, Telangana and Haryana.

Interest rates: Typically, when the Reserve Bank of India (RBI) announces change in repo rate, the lending rate for banks, interest on fixed-income assets like bonds and fixed deposits tend to vary. When interest rates across banks rise silver usually becomes less attractive and cheaper.

Making charges: Local jewelers set their own making charges for different types of silver ornaments and decorations, which vary from one city or state to another. These charges include the cost of any other addition of other precious metals and stones, and differ based on consumers preferences.

Also read | RBI allows loans against silver: New rules to take effect from THIS date

Frequently Asked Questions (FAQs)

Why are silver rates different across cities in India?

Silver is not equally distributed across states and cities. It varies typically as per the demand by industries, investments, and households. In such a scenario, silver needs to be transported from one city to another. Hence the transportation cost is added, which the consumer pays when buying the white metal. The final rate announced by the jewelry associations of different cities also affect its rate.

Which form of silver is best for investment?

Silver is sold in the form of physical jewelry as ornaments and decorations. Companies listed on stock exchanges also offer consumers to invest on silver ETFs, similar to purchase of gold ETF. It is bought and sold at market prices.

What is the current silver import duty in India?

The current import duty on silver stands at 6 percent.