Silver Prices on the Rise
In recent days, silver has redefined the meaning of price records. On Friday, silver soared to ₹89,680 per kilogram on MCX, marking a significant milestone in the market. Concurrently, with GST, prices reached close to ₹92,000 per kilogram. The market witnessed a dichotomy as consumers shied away from soaring prices while investors faced losses. The surge in prices is attributed to inflation spurred by China’s erratic buying, speculation, and international circumstances. Silver, alongside MCX, has proven lucrative for investors, offering substantial returns. In January, silver stood at a minimum of ₹72,973 per kilogram in the futures market, surging to nearly ₹90,000 by mid-May, reflecting approximately a 22% return in just five months. In the first week of May, silver was priced at ₹80,275 per kilogram on MCX.
Silver Prices on MCX
Month | Maximum | Minimum |
---|---|---|
April | ₹87,580 | ₹76,544 |
March | ₹79,751 | ₹72,418 |
February | ₹74,778 | ₹71,826 |
January | ₹76,962 | ₹72,973 |
December | ₹78,050 | ₹73,846 |
(Note: Prices are in Indian Rupees, market price = MCX + approximately ₹2500)
Impact of Chinese Purchases and Speculation
The utilization of silver in the industrial sector has surged significantly over the past four years, particularly in electrical and electronic equipment, doubling its consumption. China stands as a major player in both these sectors, being a prominent producer and consumer, thereby leading in consumption as well. Consequently, China’s relentless purchase of silver has fueled its scarcity, while speculation has exacerbated the situation. Pankaj Aroda, National President of the All India Jewelers and Goldsmith Federation, noted that the pace of silver’s rise surpasses that of gold. If this trajectory persists, silver may soon surpass the ₹100,000 per kilogram mark. The market is witnessing a customer exodus due to inflation. It is advised that jewelers refrain from the temptation of profit and avoid selling gold and silver. Instead, it is an opportune time to invest in gold rather than silver. Vinod Khanna, Vice President of Rudra Stocks and Brokers Ltd., mentioned that during Diwali, silver was priced at ₹70,000 per kilogram, which has now surged to ₹90,000, indicating the influence of speculation on prices.
Silver Prices on the Rise
In recent days, silver has redefined the meaning of price records. On Friday, silver soared to ₹89,680 per kilogram on MCX, marking a significant milestone in the market. Concurrently, with GST, prices reached close to ₹92,000 per kilogram. The market witnessed a dichotomy as consumers shied away from soaring prices while investors faced losses. The surge in prices is attributed to inflation spurred by China’s erratic buying, speculation, and international circumstances. Silver, alongside MCX, has proven lucrative for investors, offering substantial returns. In January, silver stood at a minimum of ₹72,973 per kilogram in the futures market, surging to nearly ₹90,000 by mid-May, reflecting approximately a 22% return in just five months. In the first week of May, silver was priced at ₹80,275 per kilogram on MCX.
Silver Prices on MCX
Month | Maximum | Minimum |
---|---|---|
April | ₹87,580 | ₹76,544 |
March | ₹79,751 | ₹72,418 |
February | ₹74,778 | ₹71,826 |
January | ₹76,962 | ₹72,973 |
December | ₹78,050 | ₹73,846 |
(Note: Prices are in Indian Rupees, market price = MCX + approximately ₹2500)
Impact of Chinese Purchases and Speculation
The utilization of silver in the industrial sector has surged significantly over the past four years, particularly in electrical and electronic equipment, doubling its consumption. China stands as a major player in both these sectors, being a prominent producer and consumer, thereby leading in consumption as well. Consequently, China’s relentless purchase of silver has fueled its scarcity, while speculation has exacerbated the situation. Pankaj Aroda, National President of the All India Jewelers and Goldsmith Federation, noted that the pace of silver’s rise surpasses that of gold. If this trajectory persists, silver may soon surpass the ₹100,000 per kilogram mark. The market is witnessing a customer exodus due to inflation. It is advised that jewelers refrain from the temptation of profit and avoid selling gold and silver. Instead, it is an opportune time to invest in gold rather than silver. Vinod Khanna, Vice President of Rudra Stocks and Brokers Ltd., mentioned that during Diwali, silver was priced at ₹70,000 per kilogram, which has now surged to ₹90,000, indicating the influence of speculation on prices.
Discussion about this post