Buying silver bullion

In the days gone buy people used to buy silver bullion as an investment just like gold, however the re-sale value of silver is not the same as gold. One of the problems of gold is that it blackens over a period of time. So if you purchase white silverware, over a period of time you will see it has become black silverware. Seeing this problem, people started manufacturing silverware in a new form called oxidized silver, which is treated to look antique. In face oxidized silver jewelry has a larger market than the pure white jewelry.

In India, people invest in silver bullion and store it so that they can get silver glasses, dining sets, etc., made as and when an occasion arises. For instances, in many traditional Indian cultures parents of the bride are required to send gifts to their son-in-laws home, so they prefer sending them objects made of silver thus proving their affluence.

From the industrial and economical perspective, India is the third largest silver consumer in world, after USA and Japan. Silver consumed in India is not only by consumers, but industrialists too. Since it is regarded as the most optimum electrical and thermal conductor among all metals, it is largely used in conductors, switches, contacts and fuses. It is also used in mirrors and glass coatings due to its unique optical reflectivity.

Apart from purchases made by the local Indian resident, a Non Resident Indian is permitted to buy silver bullion upto the extent of 100 kilograms, which they can carry in their personal baggage. This is a large amount for anyone, especially when it comes to purchasing a precious metal. When bringing silver bullion to India, one is required to Pay Rs. 500 per kilogram as Custom Duty at the airport when declaring it at the customs counter.

~ author Karishma Bajaj. 

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