Silver vs Gold: Silver, the often overshadowed precious metal, is poised to steal the spotlight from its popular counterpart, gold. While gold has long been the preferred choice for investors, experts now suggest that silver holds the potential for greater returns in the foreseeable future.
Increase in Demand and Investment Favor Silver Gold
Gold and silver have both experienced a profitable period since January, with gains of approximately 11 percent. However, industry experts are confident that silver will outperform gold moving forward. The primary catalyst behind this projection is the surge in business demand for silver, coupled with sustained investment interest.
Experts predict that the current trading rate of silver, approximately Rs 75,000 per kilogram, could surge to an impressive range of Rs 85,000 to Rs 90,000 per kilogram within the next 9 to 12 months. This indicates a potential increase of around 20 percent in silver prices.
Historically, the ratio between gold and silver prices has ranged between 65 and 75, while the current ratio stands at approximately 80. Given this disparity, it is widely believed that silver prices will experience a more rapid ascent compared to gold.
High Silver Consumption and Supply Issues Drive Price Surge
India, known for its substantial silver consumption, imports around 90 percent of its silver requirements. In 2022 alone, India imported an estimated 9,500 tonnes of silver. Experts highlight that supply-related challenges could further contribute to the upward trajectory of silver prices.
Promising Global Outlook for Silver
The global silver market presents an intriguing landscape for investors. Silver stocks are currently at a five-year low, while the demand for silver continues to surge worldwide. These factors align harmoniously, leading experts to anticipate a bullish trend in silver prices.
Seizing the Opportunity: Silver’s Potential Returns
Investors seeking attractive returns in the current market climate may find silver to be a compelling option. While gold remains a popular investment avenue, silver’s potential for faster and more substantial price increases makes it an enticing prospect.
In comparison to traditional investment avenues such as the stock market and bank fixed deposits, silver may offer superior returns. As silver prices continue to rise, investors can capitalize on this upward momentum to potentially secure significant gains.
Read Also: Top 10 Tax Saver Mutual Funds with Tripled Returns in 3 Years
In Conclusion, As the gold-silver ratio deviates from its historical range, experts confidently assert that silver’s price trajectory will surpass that of gold. With increasing demand, supply challenges, and a favorable global outlook, silver emerges as an enticing investment opportunity. Investors seeking impressive returns should closely monitor silver prices and consider including this precious metal in their investment portfolios.