Silver prices soar 18% year-to-date: When will it reach ₹1 lakh per kg?

Silver prices have outperformed gold this year, marking a surge of approximately 18% Year-To-Date (YTD). On Wednesday (May 29), silver prices climbed by ₹502, reaching ₹95,950 per kilogram in futures trade, driven by strong spot demand.

Analysts attribute this rise to new positions taken by participants responding to a positive domestic trend.

Globally, silver was trading higher by 0.37% at ₹32.26 per ounce in New York.

Colin Shah, Managing Director of Kama Jewelry, provided insights into the current market dynamics.

He noted, "In addition to being a precious metal with ornamental value, silver is also considered an industrial metal. It is a crucial raw material in electric vehicles, solar panels, and 5G antennas, which are expected to drive the global economy in the coming years. The ongoing geopolitical tensions, economic uncertainty, higher inflation, and anticipation of rate cuts, coupled with robust industrial demand, have all contributed to the recent momentum in silver prices."

Looking ahead, Shah predicted a robust rally for silver, potentially breaching the ₹1 lakh mark per kilogram by the end of 2024.

This forecast is supported by the dual nature of silver as both a precious and industrial metal, alongside the current economic circumstances.

Ajay Kedia, Director of Kedia Advisory, however, believes that silver rates will hit ₹1 lakh on MCX by June-end itself.

He cited increased industrial demand, and a global silver deficit as key factors supporting this upward trend.

Also Watch: During an interview with CNBC-TV18, Kunal Shah from Nirmal Bang Commodities discussed silver extensively and also projected that industrial metals would reach new highs in June.