The purity of silver is a crucial factor when purchasing or investing in the metal. Silver purity is measured in fineness, which indicates the percentage of pure silver in an alloy. For example, 999 fineness means 99.9% pure silver. Fine silver, also known as .999 silver, is the purest form available, containing 99.9% silver. It is highly resistant to tarnish but is too soft for most jewellery, making it ideal for investment coins and bars.
Sterling silver, with 92.5% purity, is the most common grade used in jewellery and household items. Britannia silver, introduced in Britain in 1697, contains 95.8% silver and was designed as a higher standard than sterling silver. Coin silver, with 90% purity, was historically used in coins and now serves similar purposes.
When purchasing silver, the final price includes the base silver price, making charges, and a 3% GST. For studded jewellery, the weight of embedded stones is excluded when calculating the net silver weight. Authenticity can be verified through BIS hallmarking, which includes a logo and purity grade, such as 925 for sterling silver or 999 for fine silver.
Investors looking to avoid physical storage or making charges can consider digital silver or silver ETFs. Digital silver allows for online purchases without physical delivery, though it is not regulated by SEBI, which has issued warnings about potential risks. Silver ETFs enable investors to buy and sell silver like stocks on exchanges, tracking domestic silver prices without holding the physical metal.