STARTING the new year on a bright note, the silver and gold prices are going through the roof and making new highs each passing day. Both the precious metals have shattered all previous highs because of heavy demand in the domestic and international markets. It is likely that silver will hit Rs 3 lakh per kg mark whereas gold may touch Rs 150,000 per 10 grams soon. Experts in the jewellery market believe that the demand is rising faster than supply, creating a supply–demand gap in the market. In the city, the silver price stood at Rs 289,000 per kg, while gold price was at Rs 146,000 per 10 grams (including GST) in the Itwari Sarafa Bazar on Wednesday.

 

“Silver prices are rising mainly because of strong industrial demand, especially from solar energy and electric vehicles, while supply remains limited. At the same time, global uncertainty and inflation concerns are pushing investors towards silver as a hedge. Also, silver was undervalued compared to gold, so we’re now seeing a catch-up rally. Silver is rising because it combines industrial growth and investment demand, which is a powerful price driver,” said Rajesh Rokde, Chairman of All India Gems and Jewellery Domestic Council (GJC). Rokde further said that silver rates were going higher because of various factors because of strong industrial demand.

 

Silver is not just a precious metal these days, but has become a key industrial metal with heavy use in solar panels, growing demand from electric vehicles (EVs) and electronics products. To compound the matter geopolitical uncertainty and volatile stock markets are pushing silver demand sharply higher. Investors are looking at silver as a safe and affordable hedge compared to gold. He expects the gold and silver prices to rise throughout the year due to geopolitical unrest. Kishore Sheth, Director of Batukbhai Jewellers, Shankar Nagar said people are exchanging old gold and buying new gold jewellery. Also, the trend for lightweight jewellery has increased among the consumers as gold and silver prices go through the roof.