Investors are eyeing stocks and gold prices. However, the real chance is seen in silver. Increasing industrial use of silver is affecting its prices. Silver prices are expected to continue further. Silver futures have reached Rs 115,136 per kg on the Commodity Exchange. Silver Futures in India have been trading since March 2015. Since then, silver has reached this level for the first time. Silver prices in the international market have reached a height of 14 years. There are 5 major reasons for silver to continue.
1. Trump’s tariff policy
US President Donald Trump’s tariff policy has increased uncertainty. Investors from this Gold I am investing more Its effect is also visible on silver. Apart from this, after imposing 50 percent duty on US copper, silver prices saw a rise. Silver is a bioprode of copper mining. Silver prices have also been supported by the US reciperochl tariff on Macisco. The reason for this is that Mexico is the largest producer of silver in the world.
Silver industrial demand is increasing. It is especially being used a lot in the green energy sector. Electric vehicles and solar panels are examples of this. Apart from this, silver has already been used in smartphones and computers. The use of silver in the automotive industry by 2040 is estimated to be triple. Now silver is also being used in medical devices.
3. Investment Demand
People have increased interest in silver ETFs in many countries of the world including India. Currently, investment demand in the total demand of silver is around 15 per cent. In comparison, investment demand accounts for 24 per cent in the total demand for gold. This year Silver ETF has seen a record investment. CM Group is a sign of bullish sentiment in silver futures growing open interest silver.
4. Low supply
The difference between the supply of silver and the demand is expected to continue. According to an estimate, by 2025, the supply of silver will increase by about 2 per cent. Despite this, there will be a difference between demand and supply. This difference is expected to reach 19 percent. Silver demand is also increasing in Europe and America.
5. Gold-silver ratio
People investing in bullion monitor the gold-silver ratio. This ratio suggests how many ounces of silver will be required to equal the value of an ounce gold at the current market price. Currently, gold and silver ratio are around 88. This shows that the value of silver remains low since Kovid on the basis of price movement. However, silver prices are 3.5 times from its post -Kovid low level, while gold prices are 2.5 times.