There was a time when shining coins at festivals, tinkling bangles at weddings and decorated utensils in puja plates, all these were synonymous with silver. But today, the same silver has become a symbol of future progress. As the world is moving from petrol and diesel to electric vehicles, silver is quietly but rapidly making its place. The increasing demand for silver in high-conductivity electronic parts and battery systems used in electric vehicles has made the metal particularly attractive to both investors and the market. The result is clear: Silver is not only shining, but its prices are also skyrocketing.
Silver prices have given tremendous returns in the last few months. If we look at the data of last 20 months, the price of silver has increased from ₹ 1 lakh to more than ₹ 4 lakh. On MCX, the price of silver in May 2024 was ₹90,000 per kg. Today, this price has crossed ₹4 lakh. On Thursday, silver price on MCX rose by ₹21,276 to ₹4,06,642, its highest ever level. In the last 27 days, silver has increased by ₹1,42,800 per kg. In the last 27 days, silver has given returns of more than 60 percent. Such a surge has neither been seen in the stock market nor in gold. This is the reason why investors are increasingly turning to the silver market. Now the biggest question is whether this rally will continue or will the phase of profit booking begin.
Why have silver prices rocketed?
The biggest reason behind this historic surge in silver prices is the tremendous increase in its industrial demand. While earlier a large part of silver was used in jewelery and coins, now its use is increasing rapidly in industries. The more advanced the technology becomes, the deeper the need for silver becomes. Experts believe that this demand is not temporary but structural. This means that as the world moves toward technology and clean energy, the need for silver will continue to grow permanently.
How electric vehicles changed the fortunes of silver
The revolution of electric vehicles has completely changed the story of silver. Governments around the world are now promoting electric vehicles as an alternative to petrol and diesel cars. According to international reports, every third new car on the road could be electric by 2030. The design of electric vehicles is completely different from other cars. Instead of engines, they contain complex electronic systems that rely entirely on electricity. Battery management systems, power control units, motors, sensors and charging systems all use silver. Therefore, silver, which is considered to be the world’s best electrical conductor, becomes essential. Experts believe that an electric car requires many times more silver than petrol and diesel vehicles. This is the reason that as the production of EV is increasing, the industrial demand for silver is also reaching new heights.
Real reason: less supply and more demand
While industrial demand is increasing rapidly, the supply of silver is not increasing accordingly. Silver is usually extracted from copper, zinc and lead mines. This means that opening new mines just for silver is neither easy nor possible quickly. According to reports, global silver production has remained fairly stable over the past five years, while industrial use has increased by more than 20 percent. This imbalance is now visible in the market.
Changing thinking regarding silver in India
Even in India, the thinking regarding silver is changing rapidly. Where earlier investors primarily relied on gold and real estate, silver is now being viewed as an industrial asset. Experts believe that in a developing country like India, where the emphasis is on electric mobility and solar energy, the demand for silver will be even stronger. Its value is now linked not only to traditions but also to the industrial progress of the country.
Silver will break more records in the future!
Currently, silver prices are at historic highs. Market analysts believe that if industrial demand continues to grow at this pace and there is no significant improvement in supply, then silver may reach even higher levels in the future. Although some fluctuations are possible, looking at the market conditions it can be said that silver will become stronger in the coming times.
Silver will become even more powerful in the future
Today, calling silver only a shiny metal would be underestimating its role. Solar energy, electric vehicles and modern medicine – they all have silver at their heart. This is the reason why it is now being called ‘strategic metal’. The metal that was once locked in safes has now become the backbone of future technology. While gold will remain a symbol of stability and security, silver is becoming a symbol of the changing world. If the world continues to move in this direction in the coming years, then the shine of silver will not be limited only to its price, but will also lead the world towards new progress.