Silver bullet for your investment woes! 11% returns in May outclass gold, Sensex, Bitcoin
May when S&P BSE Sensex has slipped 566 points or 0.75%, silver has outsmarted not just the headline index but also its shinier peer gold, and Bitcoin. The white metal has jumped by nearly 11.29% or over Rs 9,580 per kg in this month so far as its industrial appeal returns along with renewed hopes of at least two interest rate cuts, this year.
Silver's rally over the first fortnight in the ongoing month accounts for nearly 60% of the gains it has recorded in 2024 so far. It is up by 21% or Rs 16,000 per kg. On Friday, July silver futures on the MCX hit a lifetime high of Rs 90,391.
In contrast, Sensex started May at 74,482.78 and on Friday, May 17 finished at 73,917.03. Gold in this period has gained 4.45% or Rs 3,135 per 10 grams and its year-to-date gains have surmounted to 16.38% or Rs 10,359.
Bitcoin, which trails silver and gold, has fared better than Sensex with gains of 4% or $2,605 in the same period.
Silver surge factors
Anuj Gupta, Head Commodity & Currency at HDFC Securities lists Street's Fed rate cut anticipation along with improving global manufacturing activity as top triggers. «Following a period of consolidation in industrial metals, there has been a notable uptrend in recent times as global manufacturing activity has improved. This is a positive development, contributing to the upward movement of silver prices,» Gupta said.
The new all-time highs dwell on expectations that the metal is headed for a fourth year of structural deficit while demand is expected to rise to 1.20 billion ounces in
