Silver hits its highest level in 13-years on weaker USD and solid demand says experts
New Delhi: Silver prices on Thursday, crossed USD 35 mark per ounce and hit its highest level since March 2012, boosted by a combination of factors such as weaker US dollar, rising geopoltical tension and robust industrial demand.
"With the trust in dollar decreasing silver appears to be a good avenue for money to move to and the Gold Silver ratio was recently above 1.10 so the only way forward was either silver prices rise up or gold prices fall, and thats what has happened silver has risen far more than gold," said Mrinesh Jain Director, Bombay Bullion Metal Hub LLP.
The gold-silver ratio, which shows how many ounces of silver are equivalent to one ounce of gold, helps the market assess future trends by reflecting how silver is performing in comparison to its historical relationship with gold.
As reported by Reuters, the dollar prices fell across the board after weaker-than-expected U.S. private payrolls numbers highlighted continued easing in the labor market and data showed the U.S. services sector contracted for the first time in about a year in May.
Silver typically moves inversely to the US dollar, when the dollar strengthens, silver prices fall, and when it weakens, silver tends to rise.
Additionally, Silver is vital in industries which used in electronics, solar panels, EVs, medical devices, water purification, catalysts, mirrors, and semiconductors due to due to its top electrical, thermal, and antibacterial properties. With rising demand from clean energy and advanced tech, silver is becoming increasingly important beyond traditional uses like jewelry and coins. This can be seen as one of the factors behind the rise.
On the geopoltical front, in a significant move invoking national security concerns, US President Donald J. Trump has announced a visa ban for international students planning to begin studies at Harvard University. Trump has also signed an order which imposes travel restrictions on nationals from 19 countries to the US, citing national security risks, according to the White House.
Silver gains on safe-haven demand during economic and geopolitical uncertainty, similar to gold.
"While silver is well-positioned to test further highs--possibly reaching Rs 1,30,000 per kilogram later this year," said Ajay Kedia, director at Kedia Commodities, Mumbai. Adding, "silver continues to reflect the dual narrative of a monetary hedge and an industrial growth story."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Times of Oman
6 hours ago
- Times of Oman
India will continue to grow robustly, even among major industrialised G7 countries: PHDCCI
New Delhi: India will continue to grow robustly, even among major industrialised G7 countries, the PHD Chamber of Commerce and Industry (PHDCCI) said in a report on 'Population, Productivity, Partnership: Rethinking G7-India Collaboration'. The PHDCCI report added that with an average real GDP growth of more than 8 per cent from 2021 to 2024, India has consistently outpaced all G7 countries: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. IMF's 2025 projections indicate that India will maintain a growth trajectory above 6 per cent (average) through 2029, supported by robust domestic demand, sound macroeconomic fundamentals, and its demographic dividend, the report said. "India's consistent real GDP growth makes it the key growth driver for the world economy. The transformative reforms, including GST, the Insolvency and Bankruptcy Act, the Production Linked Incentive Scheme, growing digital infrastructure (Aadhaar and UPI) and Make in India, among others, are strengthening India's ascendancy in the World", said Hemant Jain, President, PHDCCI. The objective of the report was to assess India's growth and trade dynamics among G7 economies. In terms of purchasing-power-parity (PPP) terms, India's share in global GDP has surged from 7.0% in 2020 to 8.3 per cent in 2024, and is anticipated to exceed 9 per cent by 2029, he said. A crucial underlying factor is the demographic divergence between India and the G7, said Jain. India's working-age population (15-64 years) is projected to increase in the coming years, with over 68 per cent of its population currently between 15-64 years. This demographic dividend supports labour supply expansion, boosts domestic consumption, and enhances the innovation ecosystem through a vibrant startup culture and rising tertiary education enrolment, said Jain. Further, India's share of the total population ages 65 and above constitutes less than 5 per cent (2025). Conversely, G7 nations are confronting demographic headwinds as their share is more than 10 per cent, highlighting rapidly ageing populations, shrinking labour pools, and rising old-age dependency ratios, said Jain. By 2030, this share is expected to double or more than double for the G7 economies. "This is likely to slow potential output, reduce consumer demand, and increase fiscal burdens related to pensions and healthcare, said Jain. Notably, India's merchandise trade with G7 countries has surged by 61 per cent, rising from USD 154 billion in FY 2020-21 to USD 248 billion in FY 2024-25, maintaining a steady trade surplus. "This reflects India's growing export competitiveness, indicated by the commodity net export price index, bolstering its external sector resilience, Jain added. The industry body said in the report that key global initiatives led by India--the International Solar Alliance, Mission LiFE, and the Global Biofuels Alliance--are shaping a greener, more inclusive world. In the technology and digital governance space, India highlighted its commitment to a human-centric and ethical approach to AI, showcasing initiatives like BHASHINI and Digital Public Infrastructure (DPI) as global models.
Times of Oman
10 hours ago
- Times of Oman
Govt revises biomass guidelines to boost bio energy and ease of doing business
New Delhi: The Centre has revised guidelines for the Biomass Programme under Phase-I of the National Bioenergy Programme to promote cleaner energy solutions, ease of doing business, and accelerate the adoption of biomass technologies across the country, according to a statement. "The Ministry of New and Renewable Energy (MNRE) has issued revised guidelines for the Biomass Programme under Phase-I of the National Bioenergy Programme, applicable for the period FY 2021-22 to 2025-26. These amendments aim to promote cleaner energy solutions, ease of doing business, and accelerate the adoption of biomass technologies across India," the statement said. Under the new framework, Ministry has simplified several processes, such as cutting down on paperwork and easing approval requirements, which will enable the industry especially MSMEs to enhance their production. These changes align well with improvement of stubble management and India's broader goal of reaching net-zero emissions by 2070, the statement added. One of the major highlights of the revision is technological integration by enabling the use of IoT-based monitoring solutions or quarterly data submissions instead of expensive and high-tech systems like SCADA. This cost-effective step promotes digital monitoring and accountability, especially for smaller business operators. The guidelines also encourage significant simplification of documentation requirements. Developers of briquette and pellet manufacturing plants will no longer be required to submit a number of documents related to clearance matters. This change will save time, and promote ease of doing business. In a move to enhance operational flexibility, the earlier requirement for a two-year briquette or pellet sale contract has been replaced with a general sale agreement. This change will allow project developers to respond more dynamically to market conditions without being constrained by long-term contracts, as per the Ministry's statement. The amended guidelines allow flexible selling of biomass products, meaning businesses no longer need long-term contracts to get started. Furthermore, the subsidy disbursement mechanism under the Central Financial Assistance (CFA) component has been made performance-based and transparent. Projects that run efficiently, above 80%, will receive full financial assistance, while below 80 percent will receive on pro-rata basis. The performance inspection period has been simplified. Earlier, it has to be done within a period of 18 months from the date of commissioning, but now, it can be carried out within 18 months period either from the commissioning date or from the date of In-principle approval, whichever is later. Additionally, to cater on-ground operational challenges of developers, Secretary, MNRE may extend the time period, the Ministry added. During inspection, a performance report was made on the basis of Operation Plant at an average of 80 per cent of rated capacity measured over a period of three consecutive days, taking average 16 Hrs per day. However, now it has been reduced to just 10 hours as the inspection process primarily aims to verify the claimed and operational capacities and inspection for 10 hours of continuous operation would suffice for this purpose. Recognising the urgent need to address air pollution, especially from stubble burning in northern India, the new guidelines include a provision allowing biomass pellet producers in Delhi, Punjab, Haryana, and NCR districts of Rajasthan and Uttar Pradesh to choose the most beneficial support scheme, either from MNRE or CPCB. These revisions will not only support the smooth implementation of the biomass programme and timely delivery of approved financial support to commissioned plants, but also encourage the sector to establish more biomass-based plants. This would ultimately help in addressing the menace of crop residue burning and ensure sustainable management of agricultural waste. Overall, the updated guidelines will make it easier for businesses to adopt biomass technologies, provide financial incentives for efficient operations, and support India's clean energy efforts, all while promoting practical, business-friendly solutions to waste management and pollution reduction.
Times of Oman
17 hours ago
- Times of Oman
Credit growth influenced by economic activity rather than surplus liquidity: Report
New Delhi: Credit growth in the economy is influenced more by overall economic activity than by the size of the liquidity surplus, according to a recent report by Standard Chartered, an international bank. The report noted that while a high liquidity surplus may provide some support to unsecured personal loan growth (excluding consumer durable loans), it does not automatically lead to broad-based credit growth. It stated, "Credit growth depends more on economic activity than the size of the liquidity surplus; however, unsecured personal loan growth (ex-consumer durables) could get a fillip on a large liquidity surplus". In fact, as the report mentioned that the credit growth excluding unsecured personal and consumer durable loans tends to slow during periods of excess liquidity. This trend suggested that the real demand for credit, which is closely linked to economic activity, is a more important driver than the availability or cost of funds. "Slower economic activity triggers action by the central bank to increase the liquidity surplus as a counter-cyclical measure," the report said. However, despite such efforts, overall credit (excluding unsecured personal and consumer durable loans) as a share of GDP has declined during past episodes of high liquidity surplus. For example, the report highlighted that during the period from December 2016 to September 2017, when liquidity surplus ranged between 2.6 per cent and 3.3 per cent of Net Demand and Time Liabilities (NDTL), credit (excluding unsecured personal and consumer durable loans) as a percentage of GDP fell from 48.9 per cent to 46.2 per cent. This decline continued until mid-2019. Interestingly, unsecured personal loan growth (excluding consumer durables) has shown a strong uptrend over the last decade. Its size more than doubled to around 6 per cent of GDP. While this growth is largely driven by structural factors such as improved access to credit and the rise of digital lending, the report pointed out that its pace of expansion tends to increase during periods of high liquidity surplus. During March 2021 to March 2023, as per data shared by the report amid a large liquidity surplus and relaxed credit conditions, the share of unsecured personal loans in GDP rose at a faster pace than during previous similar episodes.
