Silver can make strong earnings: Increasing investment in green technology is increasing demand for silver

Silver consumption is on the rise amid a temporary recovery in the global economy, fueled by increased investment in green technology. The effect of increasing industrial demand is visible in silver prices. The price of silver has currently reached Rs 73,868 per kg. It has become costlier by 8.5% so far this year.
In this respect, it is only slightly behind gold. Gold has gained 9.7% so far this year. At present, the price of 24-carat gold is Rs.60,168. Per 10 grams. Meanwhile, there is growing interest in investing in silver. Silver is in short supply in the market. If the recovery in economic activities continues in the world, then silver may turn bullish.
Chintan Haria, Head-Investment Strategy, ICECI Prudential AMC, says, “Industrial demand accounts for more than 50% of the total silver demand. Silver is used in large quantities in modern environment-friendly manufacturing, electric vehicles, solar panels, medical instruments, switches, satellites, etc.
The demand for physical silver is stable. A record 10,000 tonnes of silver was consumed in the country last year. The demand for coins, and small bars is also stable globally. Vikram Dhawan, head-commodities, Nippon India Mutual Fund, says, “For a few years, the supply of silver in the market is less than the demand. The boom can continue.
The gold-silver ratio tells how many ounces of silver would be needed to buy one ounce of gold. This ratio is high (79) indicating that the price of silver is currently less than that of gold. Given this, it is expected that silver will outperform gold in the near future.
Investors should invest 5-10% of their portfolio in precious metals. Money Mantra founder Viral Shah says silver should be a part of it. The investment horizon in precious metals should be at least five years.