Silver prices hit record high as industrial demand grows

Silver prices in India have surged to unprecedented levels, reaching Rs 1.15 lakh per kilogram for the first time. This milestone reflects a robust demand driven by industrial applications and a persistent supply deficit. "Silver is getting all the spotlight, not just as a precious metal but also due to industrial demand. With growing ETF inflows — ₹854 crore in May, nearly three times that of gold ETFs — silver is drawing fresh attention," noted Trivesh D, COO of Tradejini. Analysts indicate that the white metal has outperformed gold, with increased use in sectors like solar panels and electronics accounting for nearly 60% of its demand.

Across the globe, spot silver prices rose by 0.6% to $38.59 an ounce, showcasing its appeal as both a safe haven and an industrial commodity. "Silver outshined most commodities last week, marking an all-time high on the domestic front and hovering near $40 on COMEX," stated Manav Modi, Senior Analyst at Motilal Oswal Financial Services. The metal's unique position in the market makes it particularly responsive to macroeconomic trends, a point highlighted by Nirpendra Yadav of Bonanza. This rise is linked to strong industrial demand coupled with insufficient mining investments, leading to a prolonged supply shortfall.

Investor interest continues to grow, underscored by silver's sharp price rise and its potential to benefit from ongoing industrial growth. "Silver has indeed outperformed gold recently, particularly in June, as industrial demand continues to strengthen," observed Yadav. The persistent underinvestment in silver mining has contributed to the ongoing supply deficit, now in its fifth year. This context suggests that silver is well-positioned to maintain its upward trajectory in the commodity markets.