Why there was a record jump in silver prices?

The year 2024 has seen a record rise in the prices of both gold and silver. But the sharp rise in silver prices has taken a toll on gold too. According to the data of the indian Bullion and Jewelers Association (IBJA), silver closed at Rs 90,055 per kg on May 23, 2024. On february 14, 2024, silver was available at Rs 69,150 per kg and from that level, the price of silver have increased by more than 30 percent. And many experts say that silver can cross the level of Rs 1 lakh crore in the coming days.
Why is the price of silver increasing?
Silver is consumed on two fronts. people buy silver jewellery. Investors also invest in silver for investment, hence it is also seen as a financial asset. So silver is also used for industrial purposes. silver is used extensively in making solar panels. The entire focus of the government is on clean energy. electricity production from solar is being promoted. In such a situation, the demand for silver will continue to increase in the coming days.
production less than consumption
Silver is being consumed in everything from electric cars to technologies like 5G. According to an estimate, more than 60 percent of silver is being consumed in industry. silver consumption is increasing but its production has decreased according to demand. Since 2016, there has been a continuous decline in silver mining while there has been a huge surge in demand.
Silver can go up to Rs 1 lakh
This is the reason why experts and brokerage houses are extremely bullish on silver. Recently, Motilal oswal Financial services said in its note that silver will see more growth than gold and it will also outperform gold. In the last 15 years, silver has consistently given annual returns of 7 percent. And if silver can touch the level of Rs 1 lakh in the domestic market, it can go up to $ 34 per ounce on COMEX. It is clear that the rise in silver prices is not going to stop here but its shine will increase further.

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