American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Silver demand surges amid high gold prices and Nifty decline: here’s why investors are bullish

by admin October 31, 2024
October 31, 2024
Silver demand surges amid high gold prices and Nifty decline: here’s why investors are bullish

For the first time in India’s history, silver sales have outpaced gold during the festive Dhanteras season.

Soaring gold prices have dampened traditional buying enthusiasm, pushing consumers and investors alike to consider silver as a valuable alternative.

With growing industrial demand, especially from the electric vehicle (EV) sector, silver’s strong performance has even outshined the Nifty 50 this year, sparking renewed interest in its potential as a long-term investment.

Shift to silver this Dhanteras

Due to high gold prices, demand for the yellow metal dropped by 15% this festive season, with sales slipping from 42 tonnes last year to about 35-36 tonnes, according to Surendra Mehta, National Secretary of the Indian Bullion & Jewellers Association (IBJA).

However, silver experienced a 30-35% rise in sales despite a 40% price increase compared to last Dhanteras.

“We are collating data for silver because this is the first time we are seeing such a huge demand,” Mehta told Times of India, highlighting the historic shift.

Analysts attribute India’s declining gold demand partly to prices consistently staying above ₹80,000 per 10 grams.

The World Gold Council (WGC) has projected that India’s gold demand could fall to a four-year low in 2024, with prices driven by global uncertainties and increased demand from central banks and the solar industry.

In contrast, silver continues to attract buyers looking for affordable alternatives and investors seeking a potential growth asset.

Industrial demand boosts silver investment

Silver’s rising appeal is also fueled by industrial demand, particularly within the booming EV sector.

The metal is increasingly viewed as a strategic investment with long-term potential beyond its traditional uses.

“People now recognize the real opportunity in investing in silver,” Mehta added, underscoring silver’s growing appeal as both a precious and industrial asset.

With domestic silver prices crossing ₹1 lakh per kg, analysts have begun recommending it as a valuable portfolio addition.

Saumil Gandhi, Senior Analyst at HDFC Securities, attributed recent gains in silver to macroeconomic factors, including declines in US Treasury yields and a weaker dollar, which have also buoyed gold.

Analysts recommend adding silver to portfolios

Silver’s performance has outpaced the Nifty 50 index this year, delivering a 33.65% year-to-date gain, with a 12.5% rise over the last month alone.

Analysts suggest adding silver on price dips, with a potential portfolio allocation of 3-5% in the coming months.

An analysis by Capitalmind Financial Services highlighted silver as an appealing alternative to gold, especially given its unique position as both a precious and industrial metal.

Anindya Banerjee, Senior VP and Head of Research in Currency, Commodity & Interest Rates at Kotak Securities, advocates for a slight overweight allocation in silver, recommending a 15% allocation to precious metals within a portfolio, with 60% in silver and 40% in gold.

“Silver offers exposure to both gold and industrial metals, making it a better investment option for those with a higher risk appetite,” Banerjee noted in an Economic Times report.

Ace investor and commodities expert Jim Rogers also recently advised investors to consider silver, given gold’s record highs.

This Dhanteras season marks a shift not only in consumer buying patterns but also in investment strategy, with silver emerging as a promising asset.

Driven by affordability and the potential for industrial growth, silver could prove to be a strong addition to diversified portfolios, appealing to both traditional and forward-looking investors.

The post Silver demand surges amid high gold prices and Nifty decline: here’s why investors are bullish appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
ECB, EU governments clash over digital Euro regulation
next post
Capri Holdings stock price is heading towards a 75% crash

Related Posts

iDEGEN price forecast: Bitget CEO predicts $60B market...

January 16, 2025

Inside candy major Ferrero’s plan to woo US...

May 10, 2025

Asian markets close higher in thin trade: Nikkei...

May 1, 2025

Why this investment bank sees more than 30%...

May 17, 2025

Indian markets close: Sensex soars 1,509 points, Nifty...

April 17, 2025

One year of Israel-Gaza war: how much has...

October 7, 2024

Citadel’s Ken Griffin buys a stegosaurus for $45...

July 19, 2024

Why Adani Enterprises shares are soaring 5% on...

December 30, 2024

Warby Parker stock price crashes to key support:...

March 19, 2025

Why Google is calling the Gulf of Mexico...

February 11, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved