The price of silver continues to increase tremendously. In the last one month alone, the price of silver has increased by Rs 1 lakh per kg. On Monday, January 19, silver prices crossed the ₹3 lakh per kg mark for the first time on the Multi Commodity Exchange (MCX).
This is a new 'all time high' record for silver. In the international market as well, silver is trading strongly around 93 to 94 dollars per ounce. The impact of this surge in prices is now clearly visible in physical demand in India.
According to experts involved in the silver market, the participation of ordinary investors and buyers has become limited at present due to high prices. According to Kishore Runwal, CEO of 'Anmol Silver', looking at the current trend, the price of silver may reach Rs 3.30 lakh per kg in the near future. He also added that investor activity in India is currently low due to high prices.
According to Runwal, 'physical silver' is currently trading at a discount in the domestic market. On the other hand, silver is being sold at a premium in major markets like the US and China. He further said that silver is selling at a premium of around Rs 10,000 in China, indicating strong demand globally.
The rise in prices has also affected the demand for silver items. Runwal said, there has been a decline in demand for silver articles. However, due to higher prices, total turnover has remained almost the same as before but sales in terms of volume have declined.
Runwal also said that the demand for silver jewelery is holding up well compared to gold. On the other hand, people's interest in 'Silver ETF' has increased in terms of investment. This means that physical purchases are decreasing but people's interest in silver as a financial investment remains.
An interesting trend is being seen on the import front as well. According to Runwal, despite higher prices, India's silver imports have remained strong and are around last year's levels. In contrast, gold imports have declined. Now this indicates that silver is currently becoming more attractive than gold in terms of investment and consumption.
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