Gold Vs Silver Price: Silver can touch the figure of 92,000 in the next three months. Silver prices have left gold far behind. Demand for silver has increased due to increasing industrial demand.
Gold Vs Silver Price: So far this year, silver prices have left gold far behind. Silver has gained nearly 18 per cent on year-on-year basis in the domestic spot market and is trading at ₹86,000 per kg. On the other hand, if we talk about gold, so far this year the spot prices of gold have increased by about 16 percent and it is close to ₹ 73,000 per 10 grams.
Trading on MCX is closed for the morning session on May 20 due to Lok Sabha elections, but in the international markets, gold prices rose by more than half a percent to hit a record high, while silver prices jumped by more than one percent.
Why are prices increasing?
Demand for silver has increased due to increasing industrial demand. Silver is used in many industries including solar panels and electric vehicles. According to experts, about 50 percent of the silver produced globally is used in industrial sectors.
“Global demand for silver is expected to reach 1.2 billion ounces in 2024, potentially the second-highest level ever,” said Vandana Bharti, head of commodity research at SMC Global Securities.
“According to a recent report by the International Energy Agency, global investment in solar PV manufacturing has more than doubled last year to nearly $80 billion. Silver demand from solar PV panel makers in China is expected to grow by nearly 170 percent by 2030,” Bharti reported. is projected to increase to approximately 273 million ounces, or about one-fifth of total silver demand.”
The second reason is the improvement in demand for silver jewelery due to record high prices of gold. According to the Silver Institute, global demand for silver jewelery is expected to grow by 6 per cent, led by India.
Buy Gold or Silver
According to Bharti, due to continuously increasing industrial demand, silver is likely to outperform gold in the coming years. If the Fed starts cutting interest rates in 2024, this would provide additional upside to silver prices. However, investment in gold and silver should be in line with the risk appetite of investors.
Kaynat Chainwala, senior manager of commodity research at Kotak Securities, said that despite silver surpassing gold in 2024, silver is still relatively cheap. The gold-silver ratio currently stands at 80.3, while the 20-year average is 68.3.
Silver can touch the figure of ₹ 92000 in 3 months
Experts expect silver to touch the figure of 92,000 in the next three months. Chenwala is bullish on silver prices. He said, “In the next three months, silver is going to move towards ₹92,000, with ₹78,000 being the important support level.” Whereas, Bharti said, “On MCX, silver can reach ₹90,000-₹92,000 levels with support levels near $28.
Also Read-
- Health Insurance: While taking health insurance you have to fill the proposal form yourself otherwise the claim will be rejected
- Bank FD Highest Interest Rates: Up to 9.60% interest will be available on FD in these 5 banks, see list here
- Petrol-Diesel Prices: Petrol, Diesel fresh prices announced, check rates in your city on May 20
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
