Synopsis: Silver prices have climbed an impressive 26% this year, reaching a record high. However, experts caution that the sharp rise may lead to profit-taking and a potential price drop.
Silver has had an impressive year so far, with prices rising 26% from Rs 73,501 per kg to a record Rs 92,475 per kg, according to the MCX spot price index.
In Mumbai, silver is now trading above Rs 90,000 per kg on the commodity exchange MCX. Market experts warn that if prices continue to climb towards the Rs 1 lakh mark, there might be a wave of profit-taking, which could drive prices down.
"At Rs 90,000, silver is fairly priced. Any further increase could create a pricing imbalance," said Shekhar Bhandari, president of global transaction banking at Kotak Mahindra Bank. "We could see a 5-10% pullback given the recent spike in prices, before they stabilize and potentially rise again globally."
Related Questions
1. How much has the price of silver increased this year according to the MCX spot price index?
The price of silver has increased by 26% this year, rising from Rs 73,501 per kg to a record Rs 92,475 per kg, according to the MCX spot price index.
2. What is the current trading price of silver in Mumbai on the MCX?
In Mumbai, silver is currently trading above Rs 90,000 per kg on the commodity exchange MCX.
3. What do market experts warn about the future price of silver?
Market experts warn that if silver prices continue to climb towards the Rs 1 lakh mark, there might be a wave of profit-taking, which could drive prices down.
4. What did Shekhar Bhandari from Kotak Mahindra Bank say about the current price of silver?
Shekhar Bhandari, president of global transaction banking at Kotak Mahindra Bank, said that at Rs 90,000, silver is fairly priced and any further increase could create a pricing imbalance.
5. What potential market movement did Shekhar Bhandari predict for silver prices?
Shekhar Bhandari predicted that we could see a 5-10% pullback in silver prices given the recent spike, before they stabilize and potentially rise again globally.
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