Silver futures for December 2011 contract, at MCX, was trading at Rs. 52,335 per 1 kg, up by 0.56% after opening at Rs. 52,190 against the previous closing price of Rs. 52,044. It touched the intra-day high of Rs. 52,412 till the trading. (At 10.49 AM today).
Moreover, there was a steady trend on the other Asian markets as euro debt crisis enhanced the demand for silver as an alternative investment.
India's silver demand averages 2500 tonnes per year, whereas the country's production was around 206.95 tonnes in 2010.
Nearly 60% of India's silver demand comes from farmers and rural India, who store their savings in silver bangles and coins
Silver is unique amongst metals due to the fact that it can be classified as both a precious metal and an industrial metal.