Silver, zinc prices have surged. Is a stock linked to these metals worth a bet?
Subscribe to enjoy similar stories. When I started my career in 2011-12, silver was trading at ₹65,000 per kg. Traders in Mumbai's Zaveri Bazaar were optimistic about it touching ₹100,000.
A decade later, that milestone has finally been reached. But is this the right time to invest in silver at ₹100,000, or should investors look at companies positioned to benefit from rising silver prices? In other words, buy the metal—or the company that makes the metal? Silver, though less popular than gold, is a highly traded precious metal valued both as a store of wealth and a medium of exchange. Early 2024 marked the beginning of a robust bull run for silver.
From a low of $22.60 in February, it surged to around $34.54—a remarkable 52% gain in just ten months. Read this | Are the best days of silver yet to come? Several factors are driving this rally. Geopolitical tensions and recession fears are boosting silver’s appeal as a safe-haven asset, though it still trails gold in that role.
With gold at all-time highs, silver could soon surpass its 2011 peak of $49. On the technical front, silver has been forming an ascending triangle pattern on the monthly chart since 2021. Last month’s breakout was followed by sustained buying pressure, and the 14-period Relative Strength Index (RSI) remains firmly in bullish territory.
Silver has now crossed the $30 mark for the first time in a decade, with the size of the triangle signalling substantial upside potential in the months ahead. There’s a reason I’m focusing on zinc, and it will become clear later. Bear with me.
Read more on livemint.com
