Sliver Hits ~18% on YTD Basis
Let's look into it.
📌In the domestic market, silver has hit ~18% YTD, trading at Rs. ~86,000 a kg. In contrast, the gold spot price has gained ~16%, trading at Rs. ~73,000 per gm.
📌This is high compared to Nifty 50, which has given just ~3.51% for the year.
Why is silver price shining?
📌Prices largely move in tandem due to macroeconomic uncertainty, geopolitical tensions, high inflation, and rate cuts.
📌Additionally, silver is also used in industries as part of production, with 50% of silver going to industrial use.
📌The global demand is expected to reach ~1.2B ounces in 2024.
Conclusion
The outlook for silver is bright both in the short and long term. According to some well-known analysts, silver will likely outperform gold in the coming years due to its ever-increasing industrial demand. Historically, silver price movements are positively correlated with gold, but they exhibit high volatility.