The price of silver and gold has been in discussion for over a week now, but on Wednesday, silver broke all past records for the first time by crossing Rs 1.91 lakh per kg. This sudden rise in the price has happened as the investors are predicting that soon the US Federal Reserve might reduce the interest rates, which in the past has boosted the demand for silver and other precious metals. This is the second day in a row that the March silver price has increased on the Multi Commodity Exchange (MCX), there has been a gain of Rs 3,736 approximately 1.98%, leading to the price touching Rs 1,91,800 per kg. On Tuesday, there was a sudden increase of Rs 6,923 approximately 3.80%. Similarly, gold also had a small rise, the February Gold futures went up by Rs 173 approximately 0.13%, Rs 1,30,280/10 grams.
What experts have to say about the silver price?
Satish Kushwaha, owner of Karat infotech, shared that this is a life time high in the price of silver as the market is expecting a rate of interest cut by the US Fed. It is expected that atleast 25-basis-point rate cut happens, however, the Federation Chairman Jerome Powell will consider the ongoing inflation concerns. He further shared that on the other hand gold has shown little movement. He further shared that because of the limited supply and strong investor buying, silver has shown a remarkable increase.
Another expert Manav Modi of Motilal Oswal shared that because of the falling inventories, and tight global supply, this expectation is because of the lower US interest rates, and the metal’s recent inclusion in the US critical minerals list. Silver also saw large iShares adds 324 tonnes last week, this is the biggest jump ever since July. For 13th month, China has increased its reserves, holding 74.12 million troy ounces.
