Silver prices hit a 12-year high, surpassing ₹1 lakh in the country and $34.50 per ounce worldwide. Analysts forecast that industrial demand, geopolitical tensions, and seasonal buying habits will drive further growth, possibly reaching ₹1.10-1.20 lakh by Diwali.
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Comex silver prices lingered above $34.50 per ounce, hitting their highest levels in 12 years, while physical silver prices crossed the ₹1 lakh barrier this week. As Diwali draws near, analysts anticipate that the local silver price increase will likely continue, with the white metal expected to surpass the ₹1.10-1.20 lakh area.
Due to a number of global causes, including growing Middle East tensions, interest rate reduction by the European Central Bank (ECB), and uncertainty around the approaching US election, silver prices have been significantly rising in recent sessions.
The demand for silver and other safe-haven assets has surged as a result of these developments. Comex silver has increased by 11% so far this month, which is the biggest monthly rise since May 2024. Compared to gold, which has increased by 33.3% since the end of 2023, silver prices have increased by 46% so far this year.
Silver’s use in jewelry is the main factor driving demand for the metal in India, especially around holidays like Diwali and Akshay Tritiya. However, the industrial sector, whose demand is much higher, has a greater influence on worldwide silver use. In conclusion, economists think there is potential for more gains if silver keeps rising due to factors like industrial demand, geopolitical unpredictability, and the seasonal increase in the buying of precious metals.
Silver is still a desirable choice for investors looking to protect themselves from market volatility, with short-term price projections of ₹1.10 lakh to ₹1.20 lakh.
