Silver price jumps to 7-year high; may outshine gold, say experts
Silver price today climbed to its 7-year high at Rs 53,199 per kg levels at the Multi Commodity Exchange (MCX).
Silver price today climbed to its 7-year high at Rs 53,199 per kg levels at the Multi Commodity Exchange (MCX). According to experts, this rise in white metal is because of the base metal rally, especially copper, as a good amount of silver is explored from the copper mines. They said that after lockdown getting eased across the globe, demand for copper and other base metals has gone up and so did exploration. They said that in coming times, silver may hit Rs 60,000 and outpace gold shine as well.
Speaking on the reason for rise in silver prices, Amit Sajeja, Associate Vice President at Motilal Oswal said, "Silver prices are rising because of the rise in base metals, especially copper. Since, silver is explored from the copper mines also, rise in demand for copper will have a positive impact on silver price and in coming times, it may outshine gold price rally and hit Rs 60,000 per kg in mid-term while in immediate terms, I am expecting the white metal to hit Rs 55,000 per kjg levels at MCX." He said that in the international markets, the silver price is heading for $20.20 per ounce levels and once it breaks this level then its next target will be $22.5 per ounce.
Anuj Gupta, Deputy Vice President — Commodities and Currencies Research at Angel Broking said, “Today, MCX silver prices have touched a 7 year high level of Rs 51,999 per kg. Currently, the ratio between gold and silver is at 92.90, however, at the starting of the year 2020, it was around 83.72 mark. Here, Gold increased sharply but silver did not increase in this pandemic crisis."
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Gupta went on to add that globally, industrial demand also increased and ETF demand also supported Silver. The holding of the biggest Silver ETF, Blackrock's ishare silver trust, has surged by $2.45 billion to $9.72 billion this year. In India, a good monsoon is also one of the reasons for the increase in Silver prices. Demand for Silver jewellery from rural areas has also supported Silver prices.”
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