At Rs 52,700 per kg, silver shines brighter
| Date :19-Jul-2020 |
By Praveen Vighre :
The while metal may hit all time high, hope bullion traders
Around April 2011 price of silver had soared to Rs 75,000 per kg. After touching a new high, silver faded gradually to hit a low of Rs 36,000 per kg in financial year 2015-16. In the year 2012-13, one kg silver cost Rs 57,000 and the price started slipping down year after year. By the end of FY 2019-20, it was at Rs 42,500 per kg. “After a gap of 6 years, the precious white metal again shone at Rs 52,700 per kg,” informed Pankaj Kumar Bakhi, Proprietor of Amrutrai and Company, while talking to ‘The Hitavada’, on Saturday.
According to Bakhi, “The lockdown due to coronavirus pandemic had changed the mindset of people. It seems that people are now preferring to invest more in precious metals like silver and gold, over real estate, equity, mutual funds and other asset classes which are more volatile these days.” Rajesh Rokde, Director of Rokde Jewellers and Secretary of Nagpur Sarafa Association, added, a lot of people invest in gold as its price is moving northwards. At the same time, people are also shifting their attention towards silver as it is also a secured investment. “The law of demand and supply also applies here, as at present the supply is less and the demand is more, hence the rates are increasing,” Rokde clarified.
Rokde added, “Beginning of festive season has also increased the demand for silver. Idols of deities, puja utensils like thali, various types of lamps etc., are in more demand during festive season.” Rokde also said, “Craze among young generation for sterling silver ornaments has increased manifold. Right from silver ‘Jodwe’ (toe ring) and ‘Payal’ (anklet) to hair pins are available in unique designs which are attracting woman customers. Even the demand for silver men’s accessories like cufflinks, bracelets, pens, has increased manifold.” Rokde also added that the customer segment for white precious metal and gold were altogether different.
“Its generally the lower middle class which prefers silver jewellery. While the upper middle class and above prefer gold jewellery. The upper class opts for platinum and diamonds.” Rate of gold on Saturday was Rs 49,600 per 10 gram, while rate of silver was at Rs 52,700 per kg without GST. Pradeep Kothari, Director of Karan Kothari Jewellers and Director of All India Gem and Jewellery Domestic Council (GJC), added that the rally of silver has just started and it may move to all time high due to its industrial use and solar panels.