As silver touched Rs 58,880 a kg in Nagpur and Rs 60,000 in Mumbai, this poor cousin of gold has seen a 46% rise in the value since January. Returns on the yellow metal on the other hand have been almost stagnant during the same period.
This is despite the fact that gold touched another all-time high of $1473 in the global market on Friday with the previous high just a couple of days ago. Silver being quoted $40.31 an ounce is still $10 away from the all-time high achieved in the 1980s. Gold's high did not make much impact in domestic market on account of a stronger rupee which offset the increase in dollar prices. Silver prices on the other hand took bigger leaps overcoming even the strong rupee factor, analysts said.
Silver prices moved in the range of Rs 41,000 to 46,000 in the month of January. These have now reached Rs 60,000 level. Somebody who purchased silver in January would have gained anywhere between 46% to 30% in just three months. Gold on the other hand was Rs 19,900 to Rs 21,200 in January and is now at Rs 21,300 a tola (per 10 grams). This is a gain of 6% to 0.47%. In the international market, gold was around $1360 an ounce in January and has now touched $1473 growing by 8%. Silver rates have jumped by 60% from $25 an ounce to $40 now.
Gold prices grew fuelled by a weakening greenback against Euro as well as international crises like that in Libya and Egypt. Silver prices, which follow gold too, are being further strengthened by a substantial industrial demand. Sizable purchases by industries that expect a further rise are causing the steep rise, said Nitin Khandelwal, a wholesaler from Akola.
Nilesh Rathi of SMS Bhav, a bullion rate information agency, feels now speculation is fuelling the silver prices. The prices have long reached a peak if only fundamentals are considered. There is no reason for such sharp increases within a few days unless there is heavy speculative buying, he says. The phenomenon has led to a massive increase in buying of silver bars for investment, say sources in business. However, there have been mixed reports on the demand for ornaments or silver utensils and gift articles.
This is despite the fact that gold touched another all-time high of $1473 in the global market on Friday with the previous high just a couple of days ago. Silver being quoted $40.31 an ounce is still $10 away from the all-time high achieved in the 1980s. Gold's high did not make much impact in domestic market on account of a stronger rupee which offset the increase in dollar prices. Silver prices on the other hand took bigger leaps overcoming even the strong rupee factor, analysts said.
Silver prices moved in the range of Rs 41,000 to 46,000 in the month of January. These have now reached Rs 60,000 level. Somebody who purchased silver in January would have gained anywhere between 46% to 30% in just three months. Gold on the other hand was Rs 19,900 to Rs 21,200 in January and is now at Rs 21,300 a tola (per 10 grams). This is a gain of 6% to 0.47%. In the international market, gold was around $1360 an ounce in January and has now touched $1473 growing by 8%. Silver rates have jumped by 60% from $25 an ounce to $40 now.
Gold prices grew fuelled by a weakening greenback against Euro as well as international crises like that in Libya and Egypt. Silver prices, which follow gold too, are being further strengthened by a substantial industrial demand. Sizable purchases by industries that expect a further rise are causing the steep rise, said Nitin Khandelwal, a wholesaler from Akola.
Nilesh Rathi of SMS Bhav, a bullion rate information agency, feels now speculation is fuelling the silver prices. The prices have long reached a peak if only fundamentals are considered. There is no reason for such sharp increases within a few days unless there is heavy speculative buying, he says. The phenomenon has led to a massive increase in buying of silver bars for investment, say sources in business. However, there have been mixed reports on the demand for ornaments or silver utensils and gift articles.
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