Current Trends in Silver Prices
Silver Price Surge: Silver prices have recently experienced significant growth, alongside gold. Currently, the rate for one kilogram of silver in the domestic Indian market has surpassed ₹90,000. Financial analysts predict that this figure may soon reach ₹100,000 or even ₹120,000 before Diwali. This trend raises the question: is now the optimal time to invest in silver?
As of September 20, international silver prices have climbed to $31 per ounce. This rise can be attributed to multiple factors, primarily the weakening of the US dollar and unprecedented high gold prices. These elements have indirectly bolstered the demand and price for silver.
Reasons Behind the Rise in Silver Prices
The demand for silver in India has surged significantly, with import data for August 2024 showcasing an astounding increase. The value of silver imports reached ₹11,000 crore, a massive leap from only ₹1,300 crore during the same month last year. This spike in imports highlights a growing domestic demand as consumers and investors increasingly view silver as a hedge against inflation and currency volatility.
Future Price Predictions for Silver
Will Silver Prices Continue to Rise? There is an expectation that the price of silver will continue to escalate. The international silver market has been facing supply shortages for four consecutive years, with global demand anticipated to reach an all-time high of 1.21 billion ounces in 2024. Such a supply-demand imbalance is expected to keep upward pressure on silver prices.
Projected Price Levels
| Organization | Price Forecast |
|---|---|
| UBS | $34 – $36 per ounce by end of 2024 |
| Citi | $35 – $38 per ounce in the next 12 months |
| JPMorgan | Average price of $36 per ounce in 2025 |
| Motilal Oswal | Potential range of ₹1 lakh to ₹1.2 lakh per kg in the medium to long term |
Conclusion
With these positive forecasts and market dynamics, silver prices are poised to continue on an upward trajectory. For investors and consumers alike, this might be an ideal time to consider incorporating silver into their portfolios as a safeguard against economic uncertainties and inflation.
