MUMBAI (Commodity Online): Astronomical rise in the price of gold has prompted traders and buyers in India—the largest importer of the yellow metal—to focus on silver. Silver price too is shining in India these days thanks to increased speculative demand, and jewellery appetite for the white metal is soaring these days.

Silver prices in India’s Multi Commodity Exchange (MCX) jumped to a record of Rs 33,152 per kg as traders aggressively took positions in the white metal. India’s is one of the largest importers of silver in the world.

Demand for silver jewellery is also booming these days, thanks to high gold prices. Several major jewellery chains across India are promoting silver as affordable and modern jewellery in place of gold.

India’s silver imports, which in US dollar terms were $309.8m in June 2010, up 854% on the year, while in the first six months of 2010 they are up 579%, at $1.69bn. India’s appetite for silver has been boosted because gold has become too expensive at current prices.

Traders said sentiments in the futures market have turned extremely bullish after silver prices in global markets rose to a 30-year high, setting a similar tend in domestic markets here.

Silver prices for July-month delivery shot up by Rs 160, or 0.48 per cent, to Rs 33,152 per kg, clocking a business volume of single lot at MCX.

The silver for delivery in May month gained Rs 109, or 0.33 per cent, to Rs 33,065 per kg, with an open interest of one lot, while December-month contract edged up by Rs 72, or 0.22 per cent to Rs 32,820 per kg, with a business turnover of 13 lots.

Speculators and traders in India are increasing their positions in silver hoping that there will be huge demand for silver jewellery in the coming festival seasons.

In global trade, silver advanced 0.2 per cent to $ 21.48 an ounce, the highest level since 1980.

Globally, silver looks set to record its seventh quarterly advance which would be its best performance since 1974. Technical traders and fundamentals investors are now looking at "poor man's gold" and scent an opportunity. Silver, unlike gold and most other commodities, remains well below its record (nominal) high of $50.35/oz.

According to goldcore.com, silver looks set to record its seventh quarterly advance which would be its best performance since 1974. Technical traders and fundamentals investors are now looking at "poor man's gold" and scent an opportunity. Silver, unlike gold and most other commodities, remains well below its record (nominal) high of $50.35/oz.

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