Silver prices continued their upward trajectory on April 8, hitting another fresh high fueled by a combination of economic data, geopolitical tensions, and market-specific factors. In 2023, silver saw a 7.19% increase in prices, while gold gained 13% during the same period. Year-to-date, silver has surged more than 11%, outperforming gold’s 15% rally.
Analysts at Motilal Oswal Financial Services remain bullish on silver, recommending investors to stay invested in the white metal. They foresee a medium to long-term upside potential for silver, with a target price of Rs 92,000 to Rs 1 lakh from the current level of Rs 81,313 per kg. Geopolitical tensions have continued to provide support to the precious metals market, with conflicts and uncertainties driving demand for safe-haven assets.
On the demand side, silver has benefited from strong industrial demand, particularly in electronics, solar energy, and healthcare sectors. The global economic recovery and increased investment in renewable energy infrastructure have further boosted silver consumption in various industrial applications. The Silver Institute expects a rise in silver demand from the photovoltaics sector, attributing it to the growth of solar installations worldwide.
Despite lagging industrial demand from China, analysts at DSP Mutual Fund foresee improvements as the Chinese economy shows signs of recovery. Overall, the outlook for silver remains positive, with increasing demand from solar PV installations and the automotive industry expected to support prices in the long run.
Investors are advised to exercise caution and consult with a financial advisor before making any investment decisions based on the information provided.
