Kolkata: After receding for several weeks, gold prices are again setting new records. But peeping from behind the headlines that gold is hogging, its poorer cousin silver prices are catching the attention of bullion traders. Bullion experts are wondering whether silver prices will against cross the psychological Rs 1 lakh per kg mark soon and whether they are going to remain in the elevated zone.
According to data from IBJA (India Bullion and Jewellers Association), the silver prices this week have been Rs 95,959 (Feb 18), Rs 97,000 (Feb 19) Rs 97,181 (Feb 20), Rs 96,844 (Feb 21) and Rs 97,000 (Feb 22, this rate is from West Bengal Bullion Merchants & Jewellers Association). Despite, this rise in prices of silver, experts are poitning out that the ratio silver:gold is languishing at 0.01, mainly due to the rise in gold prices. The rise of gold prices has happened to such an extent that the current silver:gold ratio is at its lowest. Incidentally, the all time high of silver-gold ratio is 0.06.
Silver ETFs in focus
Since silver prices are expected to rise on the back of stromg demands mainly for the industrial sector and geopolitical risks, silver ETFs are also coming in focus. Like gold ETFs, silver ETFs track the price of physical silver minutely. In order to invest in silver ETFs, one needs a demat account. Analysts are saying that investors could buy them at any fall since the outlook is positive.
Let’s have a look at some of the popular silver ETFs and their returns. According to reports, HDFC Silver generated returns of 35.74% in the past one year; UTI Silver gave 35.63%, Aditya Birla Sun Life Silver gave 35.47% return, while the Silver ETFs from Kotak and DSP AMCs gave returns of 35.34% and 35.20%.There are about a dozen Silver ETFs in India.
Outlook positive in 2025, says The Silver Institute
“Despite headwinds from a firmer dollar and Treasury yields, investor sentiment has improved towards silver during early 2025. This largely reflects several macroeconomic and geopolitical risks, which have continued to underpin inflows into safe-haven assets, such as silver and gold. The recovery has been assisted by short covering by tactical investors in the futures market amid fears about President Trump’s tariff plans and a subsequent spike in futures and spot silver prices. Looking ahead, uncertainty over US trade and foreign policy, record-high US equities, and worries about US public debt levels should all reinforce interest in portfolio diversification, which in turn will benefit silver and gold investment,” said a statement from The Silver Institute. Washington-based The Silver Institute is a nonprofit international association with members from leading silver mining houses, refiners, bullion suppliers, manufacturers of silver products and wholesalers of silver investment products.
The expert body, however, also pointed out a drag. “… potential tariff hikes under Trump’s administration and their impact on global economic growth, particularly in China, will likely restrain investor enthusiasm across the broader industrial metals complex. This could remain the key drag on silver investment in the coming months, even though silver’s actual industrial demand is expected to remain robust,” it added.
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While the resurgence of gold prices has hogged the limelight, the prices of silver are quietly appreciating and closing in on the Rs 1 lakh/kg mark. Silver crossed that mark in October 2024 but receded in the next few weeks. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
