Silver prices hit record high in India amid soaring demand
What's the story
Silver prices in India have hit an all-time high, reaching ₹115 per gram and ₹1.15 lakh per kilogram. This is the highest price ever recorded in the domestic market, according to data from Goodreturns. The surge is mainly attributed to strong industrial demand and tight supply conditions across the globe.
Market performance
Outshining most commodities last week
Manav Modi, Senior Analyst at Motilal Oswal Financial Services, noted that silver has outperformed most commodities in the past week. He said, "Silver outshined most commodities last week, marking an all-time high on the domestic front and hovering near $40 on COMEX." This highlights silver's strong market performance amid rising industrial demand and supply constraints.
Sectoral demand
Demand-supply dynamics are pushing silver prices higher
Nearly 60% of silver's demand comes from industrial sectors such as solar panels, electronics, and electric vehicles. However, supply has not kept pace with this growing demand. Nirpendra Yadav, Senior Commodity Research Analyst at Bonanza, said, "Underinvestment in silver mining, often a byproduct of other metals, has caused a fifth straight year of supply deficit." This highlights the widening gap between rising industrial demand and stagnant supply levels.
Investor trends
Investors are increasingly looking at metals like silver
Tradejini COO Trivesh D noted a growing investor interest in silver, driven by its dual role as a precious metal and an industrial commodity. He said, "With growing ETF inflows, ₹854 crore in May, nearly three times that of gold ETFs, silver is drawing fresh attention." This trend indicates investors are increasingly looking at metals like silver that have both industrial and safe-haven appeal.