New Delhi. By the year 2025, the price of silver has almost doubled. Continuous reduction in supply, increase in demand, increasing interest of investors and large purchases of ETFs have taken the price of silver to the sky. This momentum is not going to stop now. Kedia Advisory has said in one of its reports that silver can cross the level of Rs 2 lakh per kg only in the year 2025. The report said that silver has formed a “cup and handle” pattern on the technical charts, which usually indicates a long-term bullish trend.
Kedia Advisory’s report states that this pattern is formed when the market holds a price for a long time and then suddenly crosses that hurdle and moves in a new direction. Something similar has happened with silver also. Its price has crossed the important level of Rs 1,73,965 which was a major hurdle for months. Staying above it means that the market has now moved in a new direction of growth.
Silver can cross Rs 2 lakh
According to a report of Business Standard, if the current conditions continue further then the price of silver can go up to Rs 1,93,800 in the next phase and if the market trend remains very strong then it can further reach the level of Rs 2,06,000 per kg. Technical indicators are also pointing in the same direction. MACD remains above the zero line, which indicates that the bullish momentum is currently strong. The RSI may be slightly high, but this is considered normal in bullish markets. This means that the market is still not showing any significant signs of decline despite being overbought.
The report says that as long as silver remains above Rs 1,73,965, its rise will continue. Lack of supply at the global level is a major reason for the strength of silver. America has put silver in the list of “important minerals”, after which the fear has increased that import duty or other types of controls may be imposed on it in the future. This fear forced both investors and industries to buy silver rapidly. For this reason, the stock of silver in the exchanges has started decreasing rapidly.
The largest ETF bought 324 tons of silver
The world’s largest silver ETF SLV has purchased 324 tonnes of silver this week. This is the biggest purchase in the last several months. When such large institutional investors buy heavily in an asset, it signals that they are expecting further price rises. The rapid growth of any commodity does not stop as long as the demand remains strong and the supply is decreasing. Silver is currently going through this phase.
Commodity expert Anuj Gupta says that the industrial demand for silver has increased continuously in the last 10 years and it is not going to stop in future also. He believes that the possibility of a sharp fall in prices is very less. According to him, in the international market, silver can reach the level of 80 to 100 dollars per ounce by the year 2026. In the Indian market, this price is equal to Rs 1,90,000 to Rs 2,00,000 per kg.
