AHMEDABAD (Commodity Online): Silver prices are set to soar to new heights in the coming months with the rise in retail as well as industrial demand.

According to market analysts, Silver prices will touch Rs 27,000-mark per kg mark in forward market by December.

The increasing demand in industrial use and retail demand is expected to lift silver prices in the forward market to Rs 27,000 per kg by December 2009 from the present Rs 23,500 per kg.

Silver is traded at Multi Commodity Exchange of India (MCX) and National Commodity & Derivatives Exchange Ltd (NCDEX) in India. The silver price in the ready market is set to touch Rs 25,000 per kg by December from the present Rs 23,100 per kg.

The price of white metal had gone up more than three times to Rs 27,500 per kg last year from Rs 8,000 per kg in 2003. India is the world’s second largest consumer of silver. The retail demand is expected to increase during the forthcoming festival season, which is expected to last till February 2010.

Silver is used in making jewellery, coins and tableware. It is also used in chemical experiments as it provides a high electrical and thermal conductivity. The total production of Silver in the world is pegged at around 615-million ounces and Mexico is the leading silver producing country.

The total demand of silver in the world amounts to around 29,000-tonnes. About 95 per cent of this demand is contributed largely by three industrial sectors namely photography, jewellery and silverware sectors.

Over 50 per cent share of import of silver in India is held by Chinese silver. The major importing center of silver in India was Mumbai but now it has been shifted to Ahmedabad and Jaipur due to high sales tax and octroi charges.

Post your comment  (1)

Connect:

Post to Twitter

Post to Facebook