Today's Silver Rate in Kannur

29th April 2026

Factors That Affect Today's Silver Rate in Kannur

Import Duties and GST

Most of India's silver arrives through imports. The customs duty levied on these shipments is what sets the base price nationally, and Kannur is no exception. A 3% GST is added on top when you make a purchase from any local jeweller or dealer.

Local Market Demand in Kannur

Silver demand in Kannur follows the Kerala festival and temple calendar. Onam and Vishu drive the biggest surges, followed by the wedding season and temple festival weeks that run from November through May. Kerala has over 15,000 jewellery establishments and some of the highest per capita precious metal consumption in the country. 

In Kannur, Gulf remittances play a role too. The district receives an estimated Rs 14,000 crore annually from NRIs in the Middle East, and a portion of that flows into gold and silver purchases when families visit home or send money back for occasions.

Gold Price Correlation

Kerala is the highest per capita gold-consuming state in India, so when gold gets expensive, the shift toward silver is felt here more than in most places. 

A family that planned to buy gold for a wedding or Onam may redirect part of that budget to silver coins, lamps, or anklets instead. S Abdul Nazar of the Gold and Silver Merchants Association noted that silver prices surged from Rs 100-125 per gram to Rs 250-260 per gram within a single year, yet buying continued because gold had moved even further out of reach.

Industrial Demand

Kannur's economy runs on handlooms, cashew processing, and coir rather than heavy manufacturing. The district accounts for nearly 68% of Kerala's total cashew output and has over 11,000 active looms across 73 handloom cooperative societies. 

Industrial silver consumption is limited, though Keltron Component Complex Limited (KCCL) in Keltron Nagar manufactures aluminium electrolytic capacitors, supercapacitors, and resistors at a facility producing 350 million units a year. 

KINFRA industrial parks at Mattannur, Thalassery, and Thaliparamba host smaller manufacturing units. The real driver of silver demand in Kannur is not factories but temples, festivals, and household rituals.

Buying Silver in Kannur

Silver serves a specific purpose in Kerala households, and the form people buy depends on what they need it for:

• Silver Jewellery: Anklets are the standout item in Kerala. Salem manufacturers in Tamil Nadu fill lakhs of silver anklet orders specifically for the Kerala market ahead of Onam. Beyond anklets, rings, chains, bangles, and traditional Kerala-style earrings are common. Making charges range from about 5% to 25%.
• Silver Coins: Bought during Vishu for the Kani arrangement and as Vishukkaineetam gifts from elders to children. Also picked up during Onam and Dhanteras as small savings.
• Silver Bars and Bullion: Carry lower premiums over the spot price compared to jewellery. Bars work for buyers focused on the metal value alone.
• Silver Idols and Religious Items: Nilavilakku (the traditional Kerala standing lamp) in silver is central to homes and ceremonies. Silver deity idols, diyas, and miniature figurines called alroopam are bought as temple offerings. Guruvayur Sree Krishna Temple alone receives 120 to 125 kg of silver annually from devotees.
• Silver Utensils: Bowls, glasses, plates, and cups given at weddings, childbirths, and housewarmings. Silver bowls are mandatory for certain temple poojas in Kerala.

Where to Buy Silver in Kannur

South Bazaar Road is the main jewellery shopping area, with shops like Kallarackals Gold Park, Diana Gold and Diamonds, and Francis Alukkas operating along the stretch. Fort Road has silver showrooms alongside the general retail market. Krishna Jewels, which claims to be India's first BIS-certified jewellery shop, is based in Kannur. 

Aradhana Jewellery on Bank Road and Topco Silver (Fair Silver) are other names with a dedicated silver focus. For hallmarked and certified products from larger chains, Malabar Gold and Diamonds and Kalyan Jewellers both have stores in the city. Banks and certified online platforms deliver across Kannur as well.

Silver Purity Guide

Two purity grades cover most of what is sold in Kannur.

• 999 Fine Silver: 99.9% pure. Used for coins and bars meant as investment or temple offerings. Almost no other metals are mixed in.
• 925 Sterling Silver: 92.5% silver and 7.5% other metals, usually copper, for strength. This is what anklets and other worn jewellery are made from.

Check for the BIS hallmark on any silver item. It confirms the purity grade and the year of testing.

Documents and Tax When Buying Silver in Kannur

Every purchase should come with a proper tax invoice. Cash transactions above Rs 2 lakh require a PAN card by law. The 3% GST applies to all silver purchases and must be shown clearly on the bill.

Silver as an Investment in Kannur

Kerala's per capita GSDP stands at Rs 1,90,149, well above the national average of Rs 1,33,501. Remittances totalling Rs 2,16,893 crore flowed into the state in 2023, equal to 23% of the net state domestic product. Kannur sits in the northern Malabar belt that receives the bulk of these inflows. 

The Kannur International Airport handled over 10.5 lakh international passengers in 2025, mostly on Gulf routes to Abu Dhabi, Doha, Dubai, and Sharjah. That money circulates through the local economy, and precious metals are one of the places it goes.

Is Silver a Good Investment in Kannur?

Gold has always been the first choice in Kerala. But with gold prices crossing Rs 1.3 lakh per 10 grams, silver has started getting more attention from families looking for a physical asset at a lower entry point. 

Globally, silver production has not kept up with demand from solar and electronics. Locally, silver is easy to buy and sell through the same jeweller network that handles gold. 

Kerala temples receiving tonnes of silver in offerings each year also create a visible reminder that the metal holds both financial and cultural value.

Why Kannur Residents Invest in Silver?

Kannur has handloom workers, cashew factory employees, government staff, small business owners, and a large number of families supported by Gulf income. Silver fits different needs across that range:

• Affordable Entry Point: Gold in Kerala trades at competitive prices due to the state's intense jeweller competition, but it is still expensive. Silver gives a family or a young person a way to hold physical metal. Coins and small bars are the usual starting point.
• Hedge Against Inflation: Kerala's economy is heavily tied to remittances, which means households here feel rupee fluctuations directly. Silver holds value when the currency weakens, and at a lower cost than gold.
• Cultural Stability: Between Onam, Vishu, the Theyyam season running from October to May, and hundreds of temple festivals across the district, silver buying occasions come around regularly in Kannur. That constant rotation keeps the metal in demand and makes it easy to sell.

Cultural Significance of Silver in Kannur

Kannur has been a trading port since antiquity. The first-century Periplus of the Erythraean Sea recorded it as Naura, a point of call on the Malabar coast where Roman ships exchanged metals for pepper and textiles. 

The Arakkal Sultanate, the only Muslim royal dynasty in Kerala, minted silver coins from Kannur. That long connection to metals continues today through the district's temple traditions and ritual arts.

Weddings and Rituals

• Kerala weddings use silver in specific ways. The nilavilakku, the traditional standing oil lamp, is lit during the ceremony and is often made of silver in families that can afford it. Silver pooja thalis, kalash, and ritual vessels are part of the proceedings. Anklets in silver are common bridal items.
• At home, silver lamps and deity idols sit in prayer rooms. Many of these are passed down through generations. Giving silver coins at births, housewarmings, or when a family member recovers from illness is a common practice in Malabar households.

Festivals and Seasonal Demand

• Onam is the largest buying occasion. Ahead of the festival, Salem-based anklet manufacturers in Tamil Nadu receive orders from Kerala running into lakhs of pieces. Silver anklets, coins, and small utensils are part of how families celebrate the harvest and mark the new season.
• Vishu, the Malayalam New Year in April, has its own silver tradition. The Vishu Kani arrangement, the first thing you are meant to see on Vishu morning, traditionally includes silver items alongside rice, flowers, and coins. Elders give Vishukkaineetam, gifts of money or silver, to younger family members.
• Temple festivals across Kannur district run from roughly November through May, overlapping with the Theyyam season. Devotees offer silver lamps, bowls, and alroopam figurines at temples throughout this period. Parassinikadavu Muthappan Temple, where Theyyam is performed year-round, sees steady silver-related activity.

Local Craftsmanship and Heritage

• Theyyam, Kannur's signature ritual art, uses silver in its elaborate costumes. Silver foils are applied to headgear, silver beads and fringes decorate crowns, and specific forms like the Bhagavathi Theyyams wear silver serpent diadems. 
• At Parassinikadavu, the Thiruvappana form has silver shells covering the eyes. Payyanur in Kannur district is the main production centre for Theyyam accessories, and artisans there work with silver as part of the craft.
• Beyond Theyyam, South Bazaar and Fort Road carry traditional Kerala silver pieces, including nilavilakku lamps, temple jewellery designs, and sterling silver anklets. The work reflects Kerala's broader metalwork traditions rather than a single distinctive Kannur style.

Economic and Cultural Importance

• Silver occupies a different space in Kannur than gold does. Gold is for weddings and personal savings. Silver is for temples, rituals, and daily worship. 
• That division means silver demand here is steadier and less price-sensitive than gold demand, because a family offering a silver lamp at a temple is not checking the spot price first.
• With Theyyam performances, temple festivals, and household traditions creating year-round need, silver stays in circulation across the district regardless of what international markets are doing.