Silver Prices Analyzed: A Significant Market Shift

Silver prices jumped dramatically this week, reaching levels never seen before in India and around the world. Both the immediate price (spot) and future contracts on the Multi Commodity Exchange (MCX) went above 2 lakh rupees per kilogram. This is a huge increase, and it’s happening with gold also rising to new records.

• Silver hit unprecedented highs globally, exceeding 2 lakh rupees/kg.
• Gold also experienced a record-breaking price increase concurrently.
• US economic concerns & a weak rupee fueled the price surge.
• Silver’s performance outpaced gold due to physical market shortages.
• Short-term forecasts predict silver reaching 2.20 lakh rupees/kg.
• Longer-term projections anticipate silver exceeding 3 lakh rupees/kg.

The rise in silver’s price was seen across the board. On the MCX, the contract for March delivery reached a record high of 2,06,111 rupees per kilogram. Similar increases were seen in international markets, particularly on the Comex exchange where silver futures climbed to $66.65 per ounce.

Data from the India Bullion and Jewellers Association (IBJA) shows that the spot silver price started at a new high of 2,00,750 rupees per kilogram. Although prices eased slightly later in the day, they still closed at their highest level ever recorded in the Indian market. This suggests strong demand for silver.

A Delhi-based bullion dealer, V K Goyal, explained that the price jump was due to silver being bought for around 2 lakh rupees per kilogram, even before adding sales tax (GST). With GST included, the highest price reached about 2,06,200 rupees per kilogram.

Anuj Gupta, a currency and commodity analyst, believes the price increases are because the US economy is slowing down and the Indian rupee is getting weaker. People are buying silver as a safe place to keep their money during uncertain times. He also noted that there isn’t enough silver available right now to meet the high demand.

Experts predict that silver prices could rise even further, possibly reaching 2.20 lakh rupees per kilogram in the near future. Looking ahead, they believe silver could surpass 3 lakh rupees per kilogram within two to three years.

Ultimately, understanding these market shifts is crucial for investors and businesses reliant on precious metals.