Silver which until few weeks back was the second best performing metal amid the Covid 19 outbreak has now even surpassed gold in performance. On the MCX, silver for September contract jumped a huge 3.28% to close at Rs. 53048 per kg.
What Has Been Pushing The Prices Of Silver Higher?
Amid the pandemic there is an impact over the mining of silver and given the push in safe haven buying as well as buying for industrial purposes, price of silver in India has now scaled to highest in 7 years.
Also, there has been an increasing use of silver in industrial processes including for solar chips, cables, renewable energy where its high demand has pushed its prices higher. As per estimates between now and the year 2030 as much as 888 million ounce of silver will be required.
The other factor pushing silver's price are the market factors of demand and supply
The supply of silver as per the Silver Institute is expected to be the lowest in 2020 since 2009 and this is at the global level. Also, the gains in gold also propels safe haven buying the white metal and also there is demand for industrial applications, which lends it support too.
As per estimates, prices in the Indian market for silver could go to levels of Rs. 57000 in the second half of 2020 while international prices shall be at $20-$22 per ounce if the uncertainty continues to persist.