Both gold and silver price have been showcasing upside movement for the last one week but if we look at the performance of both the precious metals in 2021, silver has outshined gold price.
Gold price today is down by near 4.39 per cent from its opening price of ₹50,180 in 2021 while silver price today is near 5 per cent higher from its opening price of ₹68,254 per kg in 2021.
According to commodity experts, silver price has outshined gold price because silver has dual nature. It is both precious metal and an industrial metal. Apart from this, shrinking mines supply has also created demand-supply constraint for the silver metal.
Speaking on the reasons for silver outshining gold price in 2021, “Silver has a dual nature. It is both a precious metal and an industrial metal.
Strong economic recovery in the US, China and European Countries has led to rise in demand for the white metal, while the shrinking mines supply of silver has further supported the silver price rally. Apart from this, there has been broad base rally in the base metals complex too, wherein they have surged to multi-year highs. This has also favored the sentiments for rise in silver prices in 2021.”
“Broad base rally in base metals and rising industrial demands in china, US and European Countries created demand-supply constraint that got further worsened by the shrinking mines supply.”
On gold and silver price outlook Sugandha Sachdeva of Religare Broking Limited said, “In medium-term, silver price is expected to hit ₹75,500 to ₹76,00 per kg while in long-term or by year end, silver price may go up to ₹85,000 per kg.
Will gold price go up in 2021?
When it comes to gold price outlook, the yellow metal is expected to hit ₹52,000 per 10 gm in medium-term while in the long-term the yellow metal price can test levels up to ₹55,000 to ₹60,000 per 10 gm.” She said that the global inflation is expected to overshoot expectations amid the massive liquidity infusion and continuation of the era of cheap money, which is supportive for the gold price rally.
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