Silver may be the new gold for you | business | Hindustan Times
Today in New Delhi, India
Nov 22, 2017-Wednesday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Silver may be the new gold for you

While gold, which is breaking every pricing record these days, is the new investor darling, silver is likely to see better returns in the coming months, said analysts today, Sachin Dave reports. Silver outshining Gold?

business Updated: Aug 25, 2012 01:17 IST
Sachin Dave

While gold, which is breaking every pricing record these days, is the new investor darling, silver is likely to see better returns in the coming months, said analysts on Friday.

“In the current scenario silver is a better bet,” said Atul Shah, head, commodities, Emkay.

“Silver could see 10% returns if the European and US governments go for stimulus packages.”

Compare this: In the last three months, returns from silver have been more than 6% compared to around 3% in gold.

Silver was trading around Rs 53,000 per kilogram in June and is at Rs 56,671 for September futures and at Rs 56,528 in the spot market on Friday.

Silver dipped to Rs 52,905 on August 1 this year and has been gaining since then. http://www.hindustantimes.com/Images/Popup/2012/8/25_08_12-buss23.jpg

Gold prices meanwhile moved from Rs 29,950 in June to cross its highest ever at Rs 31,000 per 10 gms and closed at Rs 30,760 on Friday.

Silver has a better price elasticity when pitted against gold and hence could turn out to be a better bet compared to the yellow metal, said analysts.

They, however, cautioned that investors should not bet on silver for the long term. “Investing in silver for the short term, say for about 3 weeks could be good, but investors should avoid going long in silver,” said Hitesh Jain, commodity analyst, IIFL.