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Synopsis: The recent festive season has seen a significant rise in gold and silver prices, with gold hitting a new high of Rs80,080 per 10 grams. However, silver’s rise to Rs1.01 lakh per kilogram has caught attention due to its strong industrial demand, especially in sectors like electronics and electric vehicles. Market analysts expect this trend to continue, with silver potentially reaching Rs1.25 lakh per kilogram next year. Experts suggest a cautious investment approach, recommending buying during market dips and diversifying portfolios between gold and silver.
The festive season has brought a new high for gold prices, now priced at Rs80,080 per 10 grams for 24K gold, driven by market volatility and global uncertainties. Meanwhile, 22K and 18K gold are priced at Rs73,410 and Rs48,056, respectively. Investors continue to see gold as a safe haven, especially with upcoming U.S. elections and favorable interest rate cycles supporting its rise. According to Jateen Trivedi of LKP Securities, gold’s surge is also influenced by gains in Comex, nearing $2,750 per ounce.
Silver's Growing Demand
Silver has been experiencing a parallel rally, touching Rs1.01 lakh per kilogram. Unlike gold, silver's demand is heavily influenced by industrial use, particularly in electronics, electric vehicles, and photovoltaic products like solar panels. This surge can also be attributed to increased imports following a reduction in import duties, alongside strong seasonal demand. Experts predict silver prices may reach Rs1.25 lakh per kilogram next year, driven by continued industrial consumption and favorable market conditionsRs.
Expert Investment Advice
Financial advisors suggest a staggered buying strategy to manage risks associated with market peaks. Kotak Securities' Anindya Banerjee recommends accumulating gold and silver gradually to benefit from potential dips. Diversification remains key, with experts like Nirav Karkera advising a portfolio allocation of 5-15% to silver for aggressive investors. Colin Shah from Kama Jewelry also emphasizes buying during festive season dips, as prices are expected to rise further.
Balancing Gold and Silver
Both gold and silver present strong investment cases, with gold offering stability against inflation and silver bringing the benefits of industrial demand. For those considering investments, a balanced approach to these metals can be advantageous. Analysts remain optimistic, suggesting long-term gains by purchasing during price drops and diversifying across 24K, 22K, and 18K gold, or exploring silver through ETFs to avoid physical storage concerns.
