Silver Makes Historical High Of $51, Analysts Expect $72 In Two Years

Silver prices touched $51 in the international market, making a new high since 2011. In 2011, silver had almost touched $50 at $49.8 per ounce. Prior to that, in the 1980s silver had come closer to $50 after Hunt Brothers hoarded 100 million ounces of silver as well as silver futures contracts. Silver prices went up from $6.08 in January 1979 to $49.45 in January 1980.

However, in the Indian market, due to the rupee weakness, silver has touched record high levels several times and made a new high on Thursday as well.

In the international market, silver has gained 76 per cent since January this year and in the Indian market it has gained 75 per cent.

“The lack of clarity regarding the ceasefire between Israel and Hamas led to continued safe-haven buying in precious metals. Further, tight supplies and soaring borrowing costs in the London market also supported silver. Demand from renewable energy sectors such as solar and wind continues to reinforce bullish sentiment, while persistent deficits are expected to sustain the supply-demand imbalance into 2025,” said Ajay Kedia, MD, Kedia Commodities.

However, silver may see some weakness in the near to mid-term due to profit-booking. “No asset class would have given 75 per cent returns in 10 months. Hence 10-12 per cent correction is likely in silver. But the long-term prospects are intact,” he said.

According to him, silver prices can climb to $72 per ounce in the next two years. This will take silver prices in the MCX to Rs 2,25,000 per kg if the currency remains stable at the current levels.

Gold too made a new high of $4050 per ounce in the international market before dropping to $4020 levels. This took gold prices in the Delhi spot market to a new high of Rs 1,27,000 per 10 gm.