Silver Rate in West Bengal

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Silver Rate in West Bengal

West Bengal has for long been the centre of power and administration in India, acting as the capital of British India before independence. A rich legacy combined with abundant natural resources made West Bengal one of the most prosperous states in the country, with residents known for their acute investment sense. One of the most densely populated places in the world, the state is known to have a soft corner for silver, which is viewed as auspicious, making it an intrinsic part of life here. Being a hub of commerce and trade, certain cities in the state have witnessed huge growth, with silver being the primary mode of making payments in the past. Today, silver prices in West Bengal are dependent on international prices, given the fact that most of the silver used in the state is imported.

Trend of Silver Rate in West Bengal for July 2020 (rates per kg)

Trend of Silver Rate in West Bengal for June 2020 (rates per kg)

Trend of Silver Rate in West Bengal for May 2020 (rates per kg)

• On the first day of May, the prices of silver in West Bengal were at Rs.42,530 for a kg. However, the rates dropped on the next day and were at Rs.41,010 per kg. Investors moving towards riskier products and a strong dollar were the main reasons for the reduction in prices. By 7 May 2020, the prices of silver had increased to Rs.42,010 for a kg. The impact of the coronavirus outbreak on the US economy data ensured that the prices increased. By the end of the first week, the price of silver was at Rs.43,510 per kg.
• On the first day of the second week, the price of silver was at Rs.43,610 for a kg. However, by 11 May 2020, silver rates had fallen to Rs.43,090 per kg. A firm US dollar was the reason for the prices to fall. On 15 May 2020, silver prices had increased to Rs.43,160 per kg due to the tensions between China and the US over the coronavirus outbreak. The prices of silver increased to Rs.46,900 for a kg. The growing fears that the economy would further weaken because of the coronavirus outbreak impacted the prices of silver.
• At the beginning of the third week, the prices of the white metal reduced slightly and were at Rs.46,710 for a kg. The main reasons for the dip in prices were the surge in oil prices and stocks. There was also optimism that there would be a vaccine for coronavirus. Over the next few days, the prices of silver fluctuated in the state. By 21 May 2020, the price of silver was at Rs.48,200 per kg. The prices of white metal further increased on 23 May 2020 and were at Rs.48,350 for a kg. A weak global economy was the main reason for the price to increase.
• Due to the riots in the US and trade tensions between China and the US, the prices of silver increased in the fourth week of the month. The appetite for riskier assets also reduced during this period. The price of silver on the first day of the last week was at Rs.48,350 for a kg. On 25 May, the price of silver hit its highest rate for the month and was at Rs.51,400 per kg. Over the next few days, the prices of silver reduced before recovering and closing the month at Rs.50,100 for a kg.

Trend of Silver Rate in West Bengal for April 2020 (rates per kg)

• The price of silver opened in West Bengal at a price of Rs.40,500 per kg in the month of April. With almost every country going for lockdowns and restrictions, which were affecting the economy, investing in equities seemed riskier. Anticipation around the release of US jobs data, which would reveal the true extent of the coronavirus pandemic, resulted in a steadying of silver prices in the first week of April. However, towards the end of the first week, the prices dropped to the lowest price point for the month of April wherein it stood at the rate of Rs.40,360 per kg on 6 April. This was in response to lowering of coronavirus-related deaths which led to optimism around the economy getting back on track, leading to an increase in risk appetites once again, thus resulting in a dip in prices of precious metals and its appeal as a haven investment.
• The prices of the precious metal began to rise up by the second week of April. At this point in time, the prices stood at the rate of Rs.41,100 per kg and had stayed consistent for three consecutive days. The consistency in prices was broken off as the long weekend owing to the Good Friday holiday came to an end. There was also an easing of the US dollar, release of stimulus measures by the US Federal reserve in response to the coronavirus pandemic. In addition to that, the OPEC meet and the increasing worries about the global economy being stranded and struggling to get back to normality at a very slow pace after the coronavirus crisis aftermath have also been responsible for the fluctuations in the price of the precious metal. The appeal of precious metals increased as a haven investment with the increase in volatility around the economy and equities which helped to keep prices steady for some time.
• By the third week of the month of April, the prices kept going up and down, with the highest price point for the month of April being recorded at the rate of Rs.42,710 per kg on 21 April. The rise was driven by fears of a global recession continuing while the American President Donald Trump’s announcement of the economy reopening helped to drive prices down.
• By the time the end of the month was nearing, the prices of oil had also slumped drastically. This led to further volatility in equities which, in turn, also led to a consistency of prices of the precious metals. More and more investors looked to it as a safer option thereafter. The trend for silver in the month of April witnessed an overall incline in its performance with a percentage change of 2.51%.

Trend of Silver Rate in West Bengal for March 2020 (rates per kg)

• In West Bengal, silver prices stood at Rs.47,400 per kg at the start of the month. There was no change in the rates when compared to the previous month’s closing price.
• The rates of the white metal increased by Rs.1,100 per kg the following day as there was a rebound from the steep drop in the prices on 29th February. The increase was accounted to the anticipated cut in the interest rates by the US Federal Reserve.
• The price of the precious metal continued to climb and touched the highest for the month on 6th March with every kilogram costing Rs.50,700. The increase in the prices was accounted to the fact that the US Federal Reserve cut the interest rates given the current situation.

• Following that, the rates slipped in the state as investors embarked on a selling spree to meet margin calls across markets which suffered because of the coronavirus outbreak. The drop in the prices meant that the rates slipped to the lowest for the month on 19th March before closing the week at Rs.40,500 per kg. Silver’s overall performance witnessed a declining trend in the state.

Trend of Silver Rate in West Bengal for February 2020 (rates per kg)

• The silver prices in West Bengal was recorded to be Rs.50,300 per kg after investors decided to stay away from riskier assets and invest in Silver due to the outbreak of Corona Virus in China which severely impacted the global markets.
• The price of white metal in West Bengal was recorded to be the highest on 24 February at Rs.52,900 per kg as traders preferred investing silver after World Health Organisation declared Corona Virus as a global epidemic. The reports emerged that the disease had spread to six other countries including China which severely impacted the global markets and forced investors to stay away from investing in riskier assets.
• The silver rates dropped on 29 February at Rs.47,400 per kg as the outbreak of Corona Virus forced investors to liquidate their assets and stock on cash.
• Silver had an overall downward trend in February at –5.76% as the outbreak of Corona Virus impacted the movement of global markets negatively.

Trend of Silver Rate in West Bengal for January 2020 (rates per kg) 

• The price of silver opened the month of January at Rs.50,300 per kg in West Bengal. Silver prices showed an inclining trend in the first week of the month. However, from the second week of January, the precious metal showed a declining trend due to various global factors. The metal hit its weekly high on 8 January at Rs.52,600 per kg.
• With the trade deal tensions easing in the second week in the month, investors shifted back to the stock market for their investments as China and the United States of America signed the Phase-1 interim trade deal. The price of the metal dipped to Rs.49,700 per kg on 14 January.
• However, in the third week of the month, the Coronavirus outbreak resulted in the poor stock market trends globally. Along with a falling value of the dollar, investors shifted to the bullion. Silver on 20 January, was priced at Rs.50,700 per kg with a slight rise in prices compared to the previous week.
• Silver prices held steady as investors awaited on the development on rate cuts by the United States Federal Reserve. As China and the U.S. showed positive data in manufacturing and consumer durables respectively, silver prices dipped. However, as fears of the virus escalated, silver prices showed a slight incline at closed at Rs.50,200 per kg. However, the overall trend of the metal showed a percentage decline of 0.19.

Silver as an investment

Investing in silver is a safe and smart move, with the metal in high demand across the globe. The versatility mixed with utility make silver ideal for multiple industries, ensuring that owners can get quick cash for their silver during emergencies, making it extremely liquid. Limited availability combined with the demand could see the price of silver going up in the coming years, offering high appreciation on investment. Two of the most popular means of investing in silver in West Bengal are through silver contracts/futures or by purchasing silver in its physical form.

Silver contracts – The growing Indian market has enabled people to trade in silver, with silver contracts and futures providing an excellent opportunity to make profits. One can participate in silver trade through the Multi Commodity Exchange, the National Multi Commodity Exchange and the National Commodity and Derivatives Exchange. Understanding how the markets function could go a long way in enhancing your investment, provided one plays it safe and stays abreast of current trends.

Physical silver – Purchasing silver in the form of coins, bars or jewellery continues to be the most preferred form of investing in this metal. The markets are generally out of bound for most people in West Bengal, which mean that jewellers and banks are their mainstay when it comes to buying it. Silver jewellery is traditionally passed on as family heirlooms and is integral to most celebrations and festivals in the state. While it doesn’t make sense to purchase jewellery if the intention is to use it only as an investment, it does serve dual roles. Coins and bars, on the other hand, are purchased purely as an investment, as these can be sold readily and there are no wastage or making charges associated with them.

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