India Silver could trade in Rs 58,000 to 78,000 range till Diwali

Precious metals have climbed recently on stimulus measures which could create an inflationary impact thereby increasing the safe haven appeal of gold and silver.

Bullions were mainly benefited by the various economic stimulus actions taken by central banks globally. Following the US and the Central Bank, the Bank of Japan too enlarged the size of asset buying in order to foster economic growth.

The launch of QE3 in US and similar stimulus measures elsewhere will bring about industrial growth and consequently demand for silver will rise keeping in mind its vast use in various industries ranging from jewellery, automobiles, chemicals etc.

This makes silver the next favorite metals for analysts. Moreover in the Indian market (where the most awaited festive season has already begun) demand for silver is going to rise. Last year we saw silver touching almost Rs. 75,000 per kg. With current range for silver being Rs.60,000 – Rs.62,000 per kg, there is great space on the upper scale for silver to rise. Silver is expected to move within the range of Rs. 58,000- Rs. 72,000 per kg till Diwali.

Stockists have already starting making purchases keeping in mind the demand for this metal during the festive season.

Gold has historically been considered to be a store of value and an inflation hedge and increasingly it is being utilized as a monetary instrument but the now the focus seems to be shifting to silver- at least in the near future.

Source: Commodity Online