Spot silver price in the Mumbai bullion market opened all-time-high at Rs 13,750 per kg on Wednesday and closed Rs 50 lower at Rs 13,700 per kg. The opening price was 0.65 per cent higher than the closing price of the previous day. |
Silver was rotating between Rs 13,300 to Rs 13,700 per kg for the last one fortnight. Now, as the stocks of the Central government exhausted, the precious metal is bound to break records. |
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"The present silver price is still Rs 800 lower than the cost insurance and freight (CIF) rate of the imported silver. Hence, the domestic silver may touch this level anytime to sell in parlance with international price," said Suresh Hundia of Hundia Exports. |
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The government was selling its impure 92 touch silver from Kolkata and Hyderabad mint for the last six months and now the government stocks are exhausted. |
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So far the government has sold about 1,800 tonnes of silver this year out of the total annual requirement of about 3000 tonnes per annum. |
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Hence, India is going to import 1,200 tonnes of silver this year. As long as silver price remain above $9.80 an ounce in the international market, the price in the domestic market would not ease, Hundia said. |
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Real consumers are absent from the market due to high prices, said a local trader. Gold traders are shifting their attention towards silver as an investment option. |
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Therefore, silver would outperform gold very soon, the trader said. The present rise in domestic silver prices could be attributed marginally to the supply constraints from the Mineral and Metal Trading Corporation (MMTC). |
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