Global growth in green technologies seen driving demand for silver

Investors who can tolerate its higher volatility may include it within their precious metal allocation

Amid a tentative global recovery, green technologies, which make extensive use of silver, are gaining traction. Silver has emerged as an investment opportunity worth considering in an environment where rising industrial demand is accompanied by a supply deficit.

Silver, which is currently trading at Rs 73,868 per kilogram, is up 8.5 per cent year-to-date, trailing only marginally behind gold, which is up 9.7 per cent over the same period. The rally in silver may continue if the global economic recovery remains on course.

Green-tech demand

Industrial demand now accounts for the bulk (above 50 per cent) of the total demand