Silver prices surge to nearly Rs 90,000/kg, reaching all-time high
Silver prices Thursday surged to an all-time high, just shy of Rs 90,000 a kg, paced by an increase in industrial applications of the precious metal amid shortening odds of an imminent reduction in policy rates by the US Federal Reserve.
Prices climbed more than Rs 2,000, or nearly 4%, through the course of a single trading session to end at Rs 87,476 a kg. Within a month, silver prices have climbed more than 5%, resulting in annualised gains of 60%, with analysts attributing increasing industrial demand of silver from the makers of electric vehicles (EV) and photovoltaic solar panels.
High prices have sparked selling of household silver in Mumbai’s Zaveri Bazaar, said Prithviraj Kothari, MD, RiddiSiddhi Bullions. “People are selling bars, coins and silver utensils to get cash in hand. Also, after a long time, silver is witnessing such a bull run and consumers want to make the most of it,” said Kothari.
The trade believes there is still enough room for silver prices to move northward.
Silver imports:
Gold prices have steadied and are range-bound between Rs 71,000 and Rs 73,000 per 10 gm, they said.
“The uptick in silver prices followed reports of slowing US inflation, fuelling expectations of a rate cut in September,” said Jateen Trivedi, VP Research Analyst (Commodity and Currency), LKP Securities. “Demand for silver remains robust, especially in the EV and photovoltaic sectors, as consumption of EVs continues to rise, contributing to the bullish trend in silver markets.”
Silver imports climbed about a third
