Silver prices in India surged to an all-time high on Wednesday, supported by a global rally, amid signs of tighter supplies and expectations of future interest-rate cuts by the US Federal Reserve.
On the Multi Commodity Exchange, the silver rate surged by ₹4.14% to ₹2,05,934 per kg, even as the gold rate increased 0.13% to ₹1,34,409/10 gm.
“Both precious metals gold and silver are so-called ‘safe haven’ assets. Both have performed well this year, but silver has outperformed with around 80% return,” V.K. Vijayakumar, chief investment strategist at Geojit Investments Ltd., told HT Business over email.
What sets silver apart is its wide application in the “sunrise” sectors of electric vehicles, solar power and electronics manufacturing.
“The impressive growth of these industries have pushed up the demand for silver,” Vijayakumar said. “In the absence of corresponding increase in supply of this scarce metal, price has shot up. There can be some profit booking, but silver prices are likely to remain resilient.”
Silver outshined gold in global trade, with Comex futures crossing the $66 per ounce mark for the first time.
{{/usCountry}}Silver outshined gold in global trade, with Comex futures crossing the $66 per ounce mark for the first time.
{{/usCountry}}“Silver's backwardation rises once again indicating tight supply squeeze in the market pushing prices to all-time highs at $66 in the early morning session,” said Manav Modi, analyst (precious metal research) at Motilal Oswal Financial Services Ltd. “Gold climbed after a US jobs report showed the unemployment rate rose in November, buoying bets of further US interest rate cuts next year while pressuring the dollar and yields.”