The BRICS TimesSilver and gold prices are consistently rising. Silver rates are skyrocketing. On Friday, silver prices jumped by ₹ 9350 per kilogram in Delhi, India’s capital.
Surge in Prices
Precious metals like gold and silver are seeing continuous price increases. The cost of silver is soaring. On the trading day of Friday, silver rates in Delhi, the capital of the country, surged by Rs 9350 per kilogram. Following this sharp increase, silver reached the level of Rs. 2,36,350. Looking back over the last week, silver was trading around Rs. 2,04,100 on December 19. Now its price has crossed the Rs. 2,36,000 mark. Let us examine the reasons for this rise and the state of the foreign market.
The State of the Foreign Market
The international market has witnessed a strong rally in silver prices. Spot Silver has crossed 75 per ounce for the first time. During this period, the price recorded a gain of 3.72 or approximately 5.18 percent. The price of silver hit a record level of 75.63 per ounce during trading.
Why Is the Demand for Silver Increasing?
A major reason for the increase in silver prices is the continuous rise in demand from industrial sectors. Demand for silver has grown in factories and technical sectors. Furthermore, the limited global production of silver and the growing demand have led to a price hike. Silver is a crucial element in emerging segments like solid-state batteries. It finds use in EV vehicles and the solar energy sector, among others. This is why industrial demand consistently supports the price of silver.
Experts believe current global silver production is about 850 million ounces. However, the demand for silver is 1.16 billion ounces. Tensions between the US and Venezuela might also impact the export of silver.
