After giving around 20 percent return in 2019, silver continues to boom in the year 2020. Talking about this year so far, silver has given about 32 percent return, which is more than any other asset class. Silver in rupee has become expensive by Rs 15117 this year. As far as investors are concerned, seeing such a sharp rise in silver, it is natural to be afraid of new investment. But if we look at the historical return in silver, the chart is telling a different story. Experts are also assuming that this boom in silver is going to continue. In the coming days, it is seen going at a price of 72-75 thousand per kg.
How was the silver move this year
At the end of 2019, the price of silver had closed at Rs 46711 per kg. At the same time, it has reached a price of Rs 61828 per kg on MCX. That is, in the same year it became expensive by about Rs 15117 i.e. 32 percent. This year the silver high has been Rs 62400 per kg. Talking about the year from 2019 till now, silver was closed at the end of 2018 at a price of Rs 38821. Since then, silver has gained 23 thousand rupees or 59 percent.
August is the best month for silver!
If you look at the silver returns chart from 2011 till now, the average return of silver in August is looking the best. Since 2011, silver has given an average return of 5.69 percent in August. July is the second month after August, in which the average return of silver has been 3.36 percent in the last 10 years. Apart from this, the average returns of silver for the last 10 years in January, February, April, October, and December have been positive. Whereas in March, May, June, September, and November this return has been negative.
Silver will show the price of 75 thousand
Ajay Kedia, director of Kedia Advisory, says that silver is now gaining momentum compared to gold. Recently in March, the gold and silver ratio reached around 130, which is now around 82 to 83. This was seen earlier between 2006 and 2011. In 2006, the gold and silver ratio was at a high. But after that silver started gaining momentum and this ratio kept improving. By April 2011, silver reached a rate of 75 thousand.
It has also been seen earlier that when the gold and silver ratio improves, then its long cycle runs. The average of this ratio is 60. The ratio is now beyond 80. Further, if there is an improvement of 15 to 20 points, then silver can reach 72 thousand to 75 thousand. At the same time, it is also getting support from industrial demand and better monsoon. Due to good rains, rural income increases, due to which the demand for silver also increases.
Silver is the best option for these reasons!
Silver is also an asset class considered a safe haven.
With the worldwide lockdown opening, industrial demand for silver is expected to increase.
Silver is still at a reasonable price, so the demand from the industry may increase.
Many mines were closed due to lockdown. In such a situation, demand will increase due to a decrease in supply.
The country is expected to have a better monsoon this year, in such a way rural demand will increase.
There is continuous work on solar power in India, which consumes a lot of silver.
Festive demand will pick up in the coming days after recovering from lockdown.