Generally people give less importance to silver than gold because of its cost. However, the rise in silver in the last few months has brought it closer to gold. Silver prices have continued to rise, and are likely to continue rising further. A big warning is being issued as the price of silver in the retail market reaches close to ₹2 lakh. On October 14, one kg of silver crossed ₹ 173,125. With the speed at which silver has gained momentum, its price will soon cross ₹2 lakh. Due to lack of supply and increasing demand in the London market, the price of silver reached $52.5868 an ounce, its highest level since 1980.
Silver is increasing faster than gold
Gold prices are skyrocketing. Silver prices are also a matter of concern. Bullion experts believe that silver inflation will continue to rise due to global liquidity pressure and retail demand. According to Good Returns, silver prices are expected to rise by another 18% to reach ₹2.18 lakh per kg by the end of 2025. If we look at the figures, the price of silver on January 1, 2025 was around ₹ 79,380, which has now crossed ₹ 173,000. Silver prices have increased by 133% so far this year.
Silver will cross ₹7 lakh
Well-known investor Robert Kilosaki, author of “Rich Dad, Poor Dad” has issued a dire warning regarding silver prices. Kilosaki’s focus has shifted from gold and Bitcoin to silver. He has predicted that there is going to be a huge jump in the prices of silver. He predicts that prices could rise up to 400% from here. He believes that the exchange rate of the coins could cross ₹500. If his prediction proves correct, the price of silver in the Indian market may cross ₹700,400. He said that silver prices are being suppressed and the market is being manipulated. He said that big investors have accumulated silver, but now the prices of silver can touch the sky.
Not only the price of silver, but also its shortage is a matter of concern.
On one hand the prices of silver are increasing, while on the other hand there are reports of shortage of silver. According to Reuters, silver investment funds (ETFs) have stopped new purchases. Jewelers are struggling to meet the huge demand during the festive season due to the shortage of silver. According to the report, global silver demand has exceeded supply for the last four years, resulting in the excess silver reserves of the last five years being exhausted. The situation is such that even in 2025 the supply will not be able to meet the demand. 70% of silver comes from mines of other metals, due to which production cannot increase despite rising prices.
Why is there turmoil in London?
According to a Bloomberg report, the shortage in physical supply of silver has created a stir at the London Global Trade Center. Liquidity has almost dried up in the market, which means there is less silver available to purchase. This lack of liquidity for silver has further intensified the search.
silver lease rates
Silver lease rates have been high this year. Due to increasing demand for silver in India, the supply of bars available in London has reduced. Due to tariff fears, large quantities of silver were shipped to New York. The market for silver is smaller than that of gold, causing faster price fluctuations. Furthermore, the central bank has not been active in keeping silver prices stable.