The world’s two largest importers, India and China, have taken silver prices sky high. This is just the beginning. According to some experts, there will be a further increase in the price of silver. By the end of the year, silver prices may cross Rs 90 thousand.
Gold and its prices are being talked about all over the world. But silver is moving at a much higher speed. The main reason for this is the close relationship between India and China. Yes, India, which is said to be the world’s largest silver importer, and the import of silver has increased in the last few months. The effect of which is visible in the price of silver. If we talk about today, the price of silver has crossed Rs 84 thousand for the first time in the futures market of India. It is expected to cross Rs 85 thousand soon and Rs 90 thousand by the end of the year.
According to experts, China’s PMI data has been much better. China is rebounding itself again. On the other hand, demand for silver has increased due to solar panel manufacturing in India. Silver mining has declined in Peru. Demand has increased due to reduced import duty in UAE.
Besides, the effect of rise in the price of gold is also being seen in the price of silver. These are some important reasons due to which record breaking rise in silver prices is being seen. Let us also tell you what the price of silver has become from the foreign markets to the futures markets of India.
Silver crosses Rs 84 thousand
For the first time in the country’s futures market, the price of silver has reached a record level of Rs 84 thousand. According to Multi Commodity Exchange data, it has reached a new life time high of Rs 84,668. At 1:10 pm, the price of silver is trading at Rs 84,260 per kg with an increase of Rs 1,413.
However, today the price of silver opened at Rs 83,239. Since then, there has been a rapid increase in the price of silver. On the last trading day, the price of silver had closed at Rs 82,847 per kg.
If we talk about the current month, there has been a good rise in the price of silver. On the last trading day of March, the price of silver was Rs 75,048 per kg. In which an increase of Rs 9620 has been seen.
This means that in the current month the price of silver has seen an increase of about 13 percent. In the current year, an increase of 12 percent has been seen in the price of silver. An increase of 12 percent has been seen in the beginning of the year.
This is why it is increasing
- Increasing demand from China: There has been a surge in demand for silver from China. According to experts, China’s PMI data has looked much better. China is busy rebounding itself. There has been a boom in the manufacturing sector. In such a situation, there has also been an increase in the industrial demand for silver. This is the reason why there has been an increase in the price of silver.
- More imports from India also: Due to rise in the price of silver, there is going to be an increase in imports from India also. Ever since the production of solar panels has increased, there has been an increase in the demand for silver. There has been an increase of 260 percent in silver imports in the month of February. This year we may see an increase of 66 percent in silver imports. The special thing is that in the first two months of the year, about 3000 tonnes of silver has been imported.
- Increase in imports from UAE: Under the India-UAE Agreement, there has been a reduction in import duty from the government. Due to which more import of silver is being seen from UAE. Due to this, there has been a rise in the price of silver.
- Effect of rise in base metals: There is a rise in base metals like copper, zinc etc. A few days ago, copper prices reached a 14-month high. Due to problems in mining in Africa, there has been an impact on production as well as supply. Due to which the price of silver along with copper has also increased.
- Effect of gold prices: On the other hand, due to the expectation of Fed rate cut and geopolitical tension, the price of gold is increasing. Its effect is also visible in the price of silver. For this reason, the price of silver has crossed Rs 84 thousand in the local futures market.
- Reduction in silver mining: On the other hand, due to the strike in Peru, there has been less supply due to reduction in silver mining. The effect of which is visible in the prices of silver. There may be a reduction in the supply of silver in the coming days. Due to reduction in supply compared to demand, there has been a rise in prices.
what do experts say
According to Anuj Gupta, Commodity Currency Head, HDFC Securities, the main reason for the rise in silver prices is the increasing demand from China and India. Demand for silver has increased due to solar panel production in India. On the other hand, China is trying to rebound again. PMI figures have looked much better. Anuj Gupta said that the price of silver will continue to rise. He has said that by the end of the year the price of silver may cross Rs 90 thousand.