Hyderabad is one of the major historic cities in southern India. This city holds a large and upwardly moving middle class population. Silver is integral part of the city's culture and holds substantial reserve of same, mainly held by its private dealers. This city has a strong precious metals market offering wide range of products and one of the finest workmanship in the country.
Like most cities the silver rate here also follows international prices, in addition to some local dynamics which play a major role in deciding its rate. Silver forms a major part of investments in Hyderabad. People own silver in all possible forms like jewellery, coins, idols, artefacts etc. They also consider it hedging against inflation.
Jewelleries: Silver jewellery is the most popular commodity (after gold) among Hyderabadis and across the country. These jewelleries are a major part of precious metal business here. The city has wide range of silver jewellery, silverware stores to cater to the needs of people.
Coins: Due to its easy availability and liquidity option silver coins are a popular form of investment. It is easily available in various stores and in banks at premium over market rates. These are available in all levels of purity and quantity resulting in making it a versatile and cheaper option for bulk purchase.
Bullions: These are sold in large quantities like 1 kg silver per piece. Bullions are also available in various levels of purities and they can be purchased at market prices making them cheapest option among physical silver commodities. One major concern here is the reliability, hence customers must approach well established/trusted dealers for these purchases as there huge amount of finances involved.
Commodity Exchange: Exchanges like NCDEX and MCX offer silver on futures contracts for 6 months in a year. The minimum quantity of silver traded is usually set at 1kg. These commodity exchanges allow customers to trade silver in paper form i.e., without actually holding the physical silver.