Factors affecting silver price in Tamilnadu

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Factors affecting silver price in Tamil nadu
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Introduction

• Just like gold, the price of silver varies based
  on the relation between supply and demand as well
  as other economic factors.
• The price of silver reached its peak some years
  ago between around 2008-2012 but it has been
  established since then.
• following are a few factors that contribute to
  the price of silver in Tamil nadu.

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Industrial demand

• Unlike its yellow counterpart, industrial demands
  make up most of the worldwide demand for silver.
• Silver is used in every day gadgets like cell
  phones, touch screens, televisions as well as
  solar panels, RIFD chips for tracking global
  shipments and parcels, and nuclear reactors where
  its use cannot be replaced by any other metal.
• The medical industry also accounts for silver
  demand.
• These factors continue to drive demand for the
  metal and impact the price of silver.

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Investment demand

• The price of gold is determined largely by its
  investment demand.
• Although the same cannot be said for silver, many
  investors see it as a long term investment, due
  to increasing demand and depleting resources.
• This has made it an attractive metal to invest in
  and has led investors to stock this precious
  metal.

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Import costs

• Tamil nadu does not have substantial natural
  deposits of silver and meets a huge proportion of
  its silver needs through imports.
• This means that import rates affect the price of
  silver within the country.
• Since trading takes place in US dollars, a
  stronger dollar makes buying silver more
  expensive in Tamil nadu.

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conclusion

• The information on the prices of silver rate is
  merely indicative and is susceptible to change
  with market value.
• There are many silver jewellery shops in Madurai
  where you can find good quality silver at an
  affordable price.