This year, silver has created such a stir that every trader, jeweler and investor is asking just one question, will silver do wonders again or will it suffer like 2011? Recently silver has reached ₹ 1,70,415 per kg on MCX. Even in the international market its rate crossed $54 per ounce. Many people have started saying that silver will cross Rs 2 lakh, but will this rise last? Or is it just another silver bubble?
Buying silver during Diwali and wedding season has been a tradition in India. This year too, the festive demand is tremendous, but along with it, digital investment and trading have also given further fuel to this boom. Not only this, some jewelers are charging up to 10% premium on silver. Investors are calling it silver to the moon, but are things really going in the right direction?
Will silver repeat history?
No one has forgotten the year 2011. Then silver had reached ₹ 71,000 per kg and it seemed that ₹ 1 lakh was just a matter of a few days. But suddenly the market turned and within a few months silver fell below ₹ 40,000. The same situation happened in 1980 also, but later the market crashed. So the question is, will the same story be repeated this time too?
What’s new this time?
Some experts believe that this time the pace is a little different. Today silver is not limited to just jewellery. The consumption of silver in electric vehicles, solar panels and smart devices is continuously increasing. Silver is playing an important role in the campaign going on around the world regarding green energy. This is the reason why some people consider it beneficial in the long term.
but caution is necessary
The graph of silver has gone up, but recently the prices have fallen from ₹ 1.70 lakh to ₹ 1.53 lakh. Experts say that whenever everyone jumps into something together, one should be alert. In market language, it is called overbought zone, that is, there is a possibility of decline after excessive buying. Therefore, if you are thinking of investing in silver, do not take the decision just by looking at the crowd. Do some research, understand the market and act according to your risk appetite.