Silver rose to a historical high of Rs 50,300 per kg on Monday because of unrest in the Middle East.
Opening at Rs49,955 on Monday morning, the price quickly climbed to cross the Rs50,000 mark for the first time. However, by evening, silver closed at Rs49,955 following a little price correction.
On Friday, the metal had closed at Rs47,980.
Suresh Hundia, president emeritus of Bombay Bullion Association, confirmed that silver touched Rs50,300 on Monday. “Problems in the Middle East are leading to a rise in silver price,” he said.
While Egypt had witnessed violence and unrest recently, Libya is now facing a similar situation.
Experts in the bullion and jewellery market said the mounting unrest had spurred demand for gold and silver as alternative investments.
Kumar Jain, vice-president of Mumbai Jewellers’ Association and owner of Umedmal Tilockchand Zaveri jewellery store in south Mumbai, said “Owing to the mounting unrest in the Middle East, investors find it safer to invest in silver rather than crude oil.”
According to Hundia, silver price will move up to Rs51,000 to Rs52,000 per kg. “Following this it could witness a correction in price and a subsequent drop,” he said.
Since Diwali, silver price has seen a rise of Rs12,000 per kg. And in the past one week, the precious metal has seen a huge 8% jump in its price.