Silver prices 100,000/kg: past of industrial dysfunctional metal or shiny safe shelter?

Silver, often known as “poor man’s gold”, has recently stolen spotlight in global commodity markets. While Silver has always played a double role as an investment wealth and industrial dysfunctional metal, his recent development has expanded its instability and appeal.

Silver’s recent increase in ₹ 100,000/kg in India is the result of geographical political tensions, global supply limitations, especially china -growing industrial dysfunction and complex interpretations of monetary policy uncertainty.

The imbalance in supply and demand is affecting silver prices in global markets. On the side of the supply, mining output has been relatively stable due to environmental rules, labor shortages and geographical political stress in key mining regions like Latin America. Meanwhile, demand has increased by both Industrial Dysfunction programs and the interest of investment.

Silver is an important component in electronics, solar panels and electric vehicles. As the world accelerates its transition to green energy, the demand for silver has intensified. The solar industry alone accounts for about 15% of global silver consumption, and as countries increase the renewable ENERGY targets, the figure is expected to rise.

Demand for China’s Industrial Dysfunctional Metals has greatly influenced global silver prices. Despite the economic downturn in some fields, there is an industrial dysfunction demand for technological advancement and silver strong by China for green infrastructure. Solar Energy and 5G technology have increased silver imports due to aggressive expansion of the country, with global supply chains tightened.

There are also reports that Chinese investors are using silver as a hedge against domestic economic uncertainty and currency depreciation. This dual demand – industry and investment – prices on prices have increased.

Silver, like gold, is globally in the US Dollars in the Lord. Weak Dollar Ler usually increases silver prices, making it affordable for other currency holders. However, the recent instability in the Dollar Lee has added complexity to the silver price movement by changing the expectations around the US Federal Reserve’s interest rate policy.

The Fed’s cautious attitude on interest rate cuts, with constant inflation, has created uncertainty in the financial markets. Investors seeking safe wealth have turned to precious metals, including silver, to hedge against inflation and currency risk. This has led to speculative purchases, raising more fuel prices.

In India, silver has increased by the depreciation of the rupee against Dollar Lare. Imported items like weak rupees silver make more expensive, high domestic prices. In addition, inflation pressure and geographical political uncertainties have led Indian investors to precious metals as a store of value.

Silver has also been selected for retail investors and jewelers compared to gold. However, with prices of over 00100,000/kg, it is now becoming concerned, reducing potential demand in the near term.

The current silver rally is marked by high instability. Prices have seen severe intraday movements, reflecting the tug-of-war between the boom industrial dysfunction and the Barrish macro economic signals. Looking forward, when the long -term view remains positive, short -term reform is likely as the markets digest economic data and central bank signals.

For investors, Silver offers both opportunity and risk. Its Industrial Dysfunctional utility ensures long -term demand, but its sensitivity to economic cycles and monetary policy makes it a risk to sharp swing. Variety and cautious access points are the main strategy to navigate this unstable property.

(The author is the head of commodities, GeoGit Investments Limited)