Silver Prices: Silver is witnessing a fast trend once again. On MCX, it has strengthened by about Rs 1200 to reach the price of Rs 67119. Talking about the month of December, silver has gained Rs 7000 from the lower levels. However, from the record high of Rs 77833 on August 7, silver is still trading at a discount of over Rs 10,000. Experts are assuming that silver is once again becoming a trend of boom. Many factors are working in its pain market. Expect relief packages in many countries, silver demand due to increase in industrial activity, slowdown in recovery of economies, increase in unemployment rate, weak rupee and safe haven demand. They say that silver is once again crossing the 75 thousand level in the coming days.
Industrial demand picks up
The economy, which was wiped out due to the coroma epidemic, is now back on track worldwide. Silver is used in many types of industries such as making electronic products, making scientific equipment, etc. Apart from this, it is also used in food and medicines. According to Kedia Commodity Director Ajay Kedia, after the corona epidemic, once again industries have gained momentum and due to this, consumption has increased, so silver prices are also rising.
Sluggish economic recovery
Economies around the world are now recovering from the Corona epidemic. Although its speed is slow. Due to this, the trend of investors is still in the form of safe haven towards precious metals like gold and silver. Due to this, investment in silver is increasing.
Declaration in interest rates and relief package announced
Many countries around the world are bringing relief packages or hope of bringing economic revival. Apart from this, interest rates are being maintained by central banks at lower levels. So that economic activities can be increased. Due to this, silver prices are climbing.
Influence of inflation and unemployment
At present, inflation is increasing and due to Corona epidemic many people have lost employment. Due to this, silver is under pressure because people are increasing their investment in silver for difficult times. Silver is gaining momentum due to increasing demand.
Rise in silver also due to rise in gold
Silver prices generally go up and down along with gold. Due to the second wave of corona epidemic, there has been a trend of investors towards gold, which led to a rise in its price. Silver also increased due to the rise in gold. Gold reached record price in August. After slipping from the record price of August, it rose again and now it has reached close to 53 thousand. Due to this, silver is also climbing.
Fall in dollar index
The price of silver also depends on the dollar index. The lower it is, the stronger the gold and silver prices will be. The dollar index has been declining for some time. The dollar index was close to 97 in June, which is currently around 90. It had declined in July, but it again showed an increase in September and October, since then it has been a period of decline.
Gold-silver ratio
The gold-silver ratio still remains 76. Recently, it reached 124 in April. Its difference means that purchases in silver have increased. Since April, the gold ratio has fallen by about 38 percent. That means silver has increased. But it is still at 76 level, that is, silver is yet to rise compared to gold.
Silver was at a record high in August
In August, during the Corona epidemic, the price of silver reached Rs 77833 per kg on 8 August 2020. However, it could not maintain its momentum and the next day on August 9, its price reached Rs 74210 per kg. After this, silver kept fluctuating. Recently, the silver had broken down to below 60 thousand. Which has now slowly reached close to 67 thousand.
(Note: We have given this information on the basis of a conversation with Anuj Gupta, Deputy Vice President (Commodities and Currency Research) at Angel Broking.)