Discover the exciting story of silver which has reached a two-month peak. Explore the reasons behind its impressive rise!
While gold has always been the crowning jewel in the hearts of Indians, its silvery counterpart has been silently capturing a substantial share of affection as well.
Last year, India imported a record-breaking 9,450 tonnes of silver, marking the highest annual imports ever recorded, as per Business Standard. And now, the metal is at its two-month high!
But the question is, what is the true catalyst igniting this unprecedented rally for silver? And what lies ahead for this metal
Let’s find out.
If we look at returns offered by silver, on the 25th of May 2023, this precious metal was trading at around $22 per ounce, and fast forward nearly two months to the 20th of July 2023, it had surged to $25 per ounce, marking an impressive rally of 13.64%.
Delving further into its short-term performance, silver exhibited a return of 4.88% over just one month.
Reason Behind The Rally
The aggressive stance of the US Federal Reserve has cooled off inflation considerably. As per the Labor Department’s report, the consumer price index (CPE) recorded a 3% annual increase in June, down from the 4% surge observed in May. This marks the lowest rate since the onset of the rate hike cycle.
Looking ahead, market expectations are pointing towards the possibility of the Federal Reserve opting for no hike or a 25 basis point hike during the upcoming meeting scheduled for 25th and 26th July 2023. These developments have contributed to supporting prices, as highlighted by Moneycontrol.
Future of Silver
Silver is not just a precious metal; it also plays a crucial role in green technology because of its eco-friendly properties. Solar panels heavily rely on silver as a key component. Silver’s durability and performance have also made it a popular choice for wind turbines. Moreover, in electric vehicles (EVs), silver’s excellent conductivity and ability to resist corrosion make it essential for electrical connections and electrodes, as per Forbes.
Considering the growing emphasis on green infrastructure, the demand for silver will likely increase in the long term. As eco-friendly technologies gain momentum, the silver market may experience a significant boost.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The article is for information purposes only. This is not an investment advice.