In the Indian markets, the prices of gold and silver have been seen increasing for the past one week. This year, silver has overtaken gold. Gold is 4% below the 2021 opening price. Silver is at the 5,844 level, which is five times its initial price.
Experts say that the price of silver is likely to increase further as silver is also used as an industrial metal and people buy it as a precious metal as well as silver has a lot of religious significance. And its importance always remains in Indian culture.
Why are silver prices rising?
With the increase in manufacturing activity, the price of silver is increasing and its supply has declined against the market demand, which has led to an increase in prices. Silver is a precious metal as well as an industrial metal. As the economy of America, China and European countries improves, so is its demand. But there has been a decline in the supply of silver mining due to which its price has increased. All base metals have risen to a higher level, which has led to an improvement in silver sentiment.
Prices will rise further
Prices are still likely to rise in the form of industrial demand in the US, as well as a shortage of silver supply in other European countries. In the medium term, silver is expected to touch Rs 75,000 to Rs 76,000 per kg and by the end of 2021 it is expected to touch Rs 85,000 per kg while gold is expected to touch Rs 52,000 per 10 grams.
Prices due to Corona
When people are facing a recession-like situation due to Corona and production is being affected due to the recession, then people are choosing to invest in gold and silver rather than investing in the stock market. This is because cash can be raised immediately if needed. This is the reason that more and more people are buying gold and silver.
