Silver Prices Touch All-Time High of ₹1,08,200 per kg
In a significant development, silver prices have surged to an all-time high of ₹1,08,200 per kg in Delhi, according to the All India Sarafa Association. This record-breaking price is a result of a rise of ₹1,000 in the preceding session, with the white metal closing at ₹1,07,200 per kg on Tuesday.
The All India Sarafa Association is a leading industry body that represents the interests of jewellers and bullion traders across the country. The association’s data is widely followed by market participants and analysts to gauge the direction of silver prices.
The surge in silver prices is a reflection of the metal’s increasing popularity as a safe-haven asset. Silver is often seen as a hedge against inflation and market volatility, and its price tends to rise when investors seek to diversify their portfolios.
In global markets, spot silver rose 0.15% to $37.18 per ounce, which is also a new high. The rally in silver prices is attributed to a combination of factors, including a weaker dollar, concerns over global economic growth, and increasing demand from industrial and jewellery sectors.
The rise in silver prices is likely to have a positive impact on the Indian jewellery industry, which is a significant consumer of the metal. Jewellers are expected to benefit from the higher prices, as they will be able to charge more for their products. However, the increase in prices may also lead to higher costs for consumers, which could impact demand in the short term.
The All India Sarafa Association has been tracking silver prices since 2011, and the current price of ₹1,08,200 per kg is the highest ever recorded. The association’s data shows that silver prices have been steadily rising over the past few years, driven by a combination of factors including supply-demand imbalances, central bank buying, and safe-haven demand.
The surge in silver prices is also likely to have implications for the Indian economy, which is a significant producer of silver. The country’s silver production is estimated to be around 1,500 tonnes per annum, which is a small fraction of global production. However, the Indian jewellery industry is a significant consumer of silver, and any increase in prices is likely to have a ripple effect on the economy.
In conclusion, the surge in silver prices to an all-time high of ₹1,08,200 per kg is a significant development that is likely to have far-reaching implications for the Indian jewellery industry and the broader economy. The rise in prices is a reflection of the metal’s increasing popularity as a safe-haven asset, and is likely to benefit jewellers while also increasing costs for consumers.
Source: https://repository.inshorts.com/articles/en/PTI/29c73f08-c86d-4ff8-ad75-829a448420d0
