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New Delhi: Silver prices in India touched a fresh peak on Friday. On the Multi Commodity Exchange (MCX), the future price of silver crossed Rs 2 lakh per kg, which caused tremendous movement among investors and market experts. The rise has been so strong that silver has climbed by about 129 percent since the beginning of the year.
During the session, silver futures contracts reached Rs 2,00,362 per kg. By 2:55 pm, the prices were slightly softening and trading at Rs 2,00,143, but the rally remained intact. Experts say that this surge in silver is not only due to the domestic market, but the result of the increasing gap between global demand and supply.
According to analysts, there are many big reasons behind the sharp rise of silver this year, which include the unstable global climate, the weak US dollar and the inclination towards safe haven. Axis Securities stated in its report that many factors affecting silver are similar to gold. Apart from this, high copper prices have also given strong support to silver, because both have a strong relationship in industrial demand.
Another important aspect is that the supply of silver is not so flexible. In the world, most silver is produced as a by-product with other metals like lead, zinc and copper. Despite rising prices, production cannot be increased immediately, which reduces supply and demand remains high.
Gold futures on MCX also rose 1.05 percent to Rs 1,33,860 per 10 grams on Friday. According to experts, the gold rally has been hampered by low interest rates, safe haven demand and global uncertainties. The rate cut by the US Federal Reserve has also reduced the cost of holding gold.
Overall, silver has surpassed gold this year and has become the focus of investors' eyes, creating new heights in the market.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)
