Silver crosses Rs 4 lakh
Gold and silver, both precious metals, have shown such signs of inflation that all the old records have been destroyed in one fell swoop. Silver prices have created history and crossed the Rs 4 lakh mark, while the shine of gold is also becoming beyond the reach of the common buyer. This historic rise in the market has forced everyone to wonder where these prices will stop.
The whole game changed in 24 hours
The speed at which silver has jumped is no less than a surprise even for market experts. The price of silver on MCX has reached the level of Rs 4,07,456 per kg. Silver has also registered its ‘all-time high’ price in the bullion market of Delhi. The thing to note is that to touch the magical figure of Rs 4 lakh, Silver needed only Rs 15 thousand, which he completed within just 24 hours. This rise has not come suddenly. Last Tuesday, a huge jump of Rs 40,500 was seen in the price of silver. The very next day i.e. on Wednesday, the prices increased by another Rs 15,000.
not even gold is behind
Not only silver, gold prices are also skyrocketing. The shine of the yellow metal is now dazzling the eyes. The price of gold on MCX has reached Rs 1,75,869 per 10 grams, which is a new record in itself. If we look at the market data, on Wednesday, gold of 99.9% purity closed at a new peak of Rs 1,71,000 per 10 grams with a huge increase of Rs 5,000.
Why are prices going out of control?
There is no single reason behind this ‘tsunami’ in prices. Market experts have mainly attributed this to three international reasons.
- Weakness of Dollar: The huge fall in the US dollar has given wings to gold and silver. Recent comments by US President Donald Trump have indicated that he is in favor of a weak dollar. Whenever the dollar weakens, the prices of gold and silver increase in the international market because investors’ trust starts shifting from currency to metals.
- Looking for safe investments: According to Saumil Gandhi of HDFC Securities, there is currently an environment of geopolitical tension and business uncertainty across the world. In such an environment of fear, people are considering it safest to invest in gold and silver instead of stock market or currency to protect their capital.
- Mathematics of interest rates: The market is also keeping a close eye on the policies of the US Federal Reserve. Although interest rates are expected to remain stable at present, the possibility of rate cuts in future has further fueled the demand for gold and silver.