For the second day in a row silver crossed the Rs 1 lakh mark and was trading at Rs 1,01,323 per kg on Tuesday in the physical market. Prices went up by another Rs 1,241 per kg on Tuesday compared to Monday.
“This price rise will impact the demand for silver during the Dhanteras-Diwali period and volume-wise it may drop by 15-20 per cent,” said Surendra Mehta, national secretary of India Bullion & Jewellery Association (IBJA).
Mehta said that silver has remained undervalued for a long time and now it is on a bull run. “Also, there’s speculation that Russia is accumulating silver. That is why the prices are moving up too,” he said.
“Silver prices have gained strong upward momentum, with physical market prices surpassing Rs 100,000 per kg in India. As gold prices soar, retail buyers are increasingly turning to silver, viewing it as a relatively cheaper alternative at these levels, especially with gold now touching Rs78,000 for 10 grams. The rise in silver is being driven not only by its appeal as a more affordable precious metal but also by increasing demand from the electric vehicle (EV) sector and photovoltaic applications, which is expected to sustain global demand in the medium to long term” said Jateen Trivedi, VP Research Analyst- Commodity & Currency at LKP Securities.MCX silver futures for December 5 expiry and March 5, 2025 expiry reached the life-time highs of Rs 98,598 per kg and Rs 1,00,564 per kg, respectively.
On the MCX, silver prices surged to Rs 98,000, supported by Comex silver climbing to $34 per ounce. A breach of the $34 mark triggered fresh buying interest in silver, as market participants anticipate further gains.
In the short term, resistance for silver in MCX is seen at Rs 100,000, a key psychological level, while support is found around Rs 96,000-Rs 96,500.
