MCX Silver Reaches Record High of Rs 1.06, Highlighting Strong Performance in Precious Metals Sector
Silver has recently surged to an all-time high of Rs 1,06,138 per kilogram on the Multi Commodity Exchange (MCX), marking a significant moment for investors. This increase is attributed to a combination of safe-haven buying, global supply constraints, and robust industrial demand, particularly from the clean energy and electronics sectors. Experts predict that silver’s rally may continue, with projections suggesting it could reach as high as Rs 1,23,000 per kilogram in the coming months.
Factors Driving Silver’s Rise
The recent surge in silver prices can be traced back to several key factors. Safe-haven buying has intensified amid ongoing geopolitical tensions, particularly the Russia-Ukraine conflict. This situation has created uncertainty in global markets, prompting investors to seek stability in precious metals. Additionally, supply constraints have emerged, especially as Russia, one of the world’s leading silver producers, faces disruptions due to its ongoing conflict. This combination of factors has significantly bolstered silver’s appeal as both an investment and an industrial commodity.
Moreover, the demand for silver is being driven by its critical role in the clean energy sector, particularly in solar panels and electric vehicles (EVs). As the world shifts towards greener technologies, the industrial demand for silver is expected to remain strong. Analysts believe that this dual role of silver—as a precious asset and an essential industrial input—positions it favorably for continued growth in the coming months.
Market Predictions and Expert Insights
Industry experts are optimistic about silver’s future, with many forecasting a continued upward trajectory. Naveen Mathur, director of commodities and currencies at Anand Rathi Shares and Stock Brokers, anticipates a return of 18% to 20% from current levels. He projects that silver could reach between $38.70 and $41.50 per ounce internationally, translating to Rs 1,15,000 to Rs 1,23,000 per kilogram in MCX futures during 2025.
Robert Kiyosaki, author of “Rich Dad Poor Dad,” has also expressed a bullish outlook on silver, suggesting it could double in value to $70 per ounce this year. Similarly, Jateen Trivedi from LKP Securities noted that silver has experienced a structural shift since its lows in 2020, driven by safe-haven demand and strong industrial needs. He predicts that silver prices could test Rs 1,10,000 to Rs 1,20,000 this year, emphasizing a buy-on-dips strategy for investors.
Long-Term Outlook for Silver
The long-term outlook for silver remains positive, bolstered by strong institutional interest and favorable technical signals. Analysts highlight that silver’s unique position as both an investment and an industrial commodity allows it to thrive in various market conditions. With ongoing volatility in global markets and robust demand from sectors like solar energy and electric vehicles, silver is well-positioned for further appreciation.
Jigar Trivedi from Reliance Securities noted that with prices already above Rs 1 lakh per kilogram, silver could reach Rs 1,10,000 per kilogram in the near future. He emphasized that silver’s growth potential is higher than that of gold, particularly due to its industrial applications. As the market continues to evolve, silver is expected to remain a strong contender for investors looking for opportunities in precious metals.
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