Silver can reach up to ₹ 90 thousand this year: Use of silver is increasing in industries around the world, supply is 7,500 tonnes less than demand

The use of silver is increasing rapidly in industries around the world. Due to this, the demand and price of silver in the international market is also increasing rapidly. The use of silver is increasing in 5G, technology, semiconductors, electric vehicles, solar panels and medical devices.

Anuj Gupta, Commodities Head, HDFC Securities, says that this has led to a shortage of global supply of silver. According to the recent World Silver Survey, there has been a shortage of silver supply as compared to demand for the fifth consecutive year. In 2023, there was a shortage of 4,026 tonnes of silver as compared to demand. In 2024, due to industrial demand, there is a possibility of 7,513 tonnes less supply of silver as compared to demand. In such a situation, by the end of 2024, silver can reach Rs 90 thousand / kg, which is currently at Rs 83,338.

6 big reasons due to which the price of silver can increase rapidly

1. Industry: Silver usage increased by 11% to 20 thousand tonnes Industrial use of silver has reached 50% of total consumption worldwide. In 2023, demand in electronics, solar panels, auto grew by 11% to 20,353 tonnes.

2. Solar panels: Usage can double in 2 years The use of silver in solar panels is expected to double by 2025. In 2023, 5,485 tonnes of silver was used in solar panels, up about 20% from 2022.

3. Auto: EVs consume 5,250 tonnes of silver annually The consumption of silver in electric vehicles is growing rapidly. Due to increased investment in infrastructure, the demand in the auto sector is expected to reach 5,250 tonnes by 2025.

4. Jewellery: When gold is expensive, silver jewellery sells more The demand for silver jewellery was 5,655 tonnes in 2023. The demand for silver jewellery increases rapidly due to increase in the price of gold. In such a situation, the demand is likely to increase in this sector as well.

5. Tension in big countries: People are increasing reserves in times of war Uncertainty is increasing due to the Russia-Ukraine and Israel-Hamas war. Because of this, the rich and central banks of the world are increasing the reserves of gold and silver.

6. Federal Reserve: Demand will increase further by reducing interest rates For the first time since 2008, interest rates are set to be cut in America. This will provide cheap loans to the industry. Growth will increase, which will further increase the consumption of silver.

Silver is an excellent electric conductor, it neither corrodes nor shorts, hence the demand is increasing Anuj Gupta says that there is no alternative to silver. It is a very good electric conductor. It is being used in TVs, mobiles. It is used in medical equipment. It does not rust. Its life is much longer than other electric conductors. Silver neither corrodes nor shorts. This quality makes silver the best energy storage tech superstar. There is no alternative to it.

The price of silver can go up to Rs 1.5 lakh per kg Ajay Kedia, Director of Kedia Advisory, says that the consumption of silver is increasing in the industry across the world. But the demand is high and the supply is low. The reason for this is that silver was not in demand for 10-12 years, so the cost of mining increased. Production decreased.

Apart from the increasing industrial use, the demand is also increasing due to the interest rate cut by the US Federal Reserve, increasing investment in silver and increasing tension between big countries. Imports in India have increased 3 times. Due to this, the price can reach Rs 1.25-1.5 lakh per kg by September 2025.