Hindustan Zinc shares soar as silver crosses the $ 60 / ounce mark

Hindustan Zinc shares are soaring today as the price of silver is at record highs. The company is an integrated silver producer. Silver price has crossed the record $60 per ounce mark for the first time. At 12:30 p.m. IST, silver price for spot delivery is $61.35 per ounce. Hindustan Zinc shares are up by 4.18% at this time, trading at Rs 512. Nifty 50 index is down by 0.20% at this time.

Silver price rise on US Federal Reserve rate cut expectation

Silver price has been rising since yesterday on the expectation that US Federal Reserve will cut down interest rate by 25 basis points or 0.25%. Traditionally, silver prices and interest rates have a negative correlation. When interest rates increase, price of silver goes down. When interest rates go down, price of silver tends to go up. This inverse relationship has, however, weakened in the past 1 year. On many instances, silver prices continued to increase even when central banks increased interest rate. Silver, along with gold, is also used as a hedge against inflation.

Hindustan Zinc produces refined silver. Silver is produced as a by-product of its zinc and lead mining and refining operations. Hindustan Zinc currently produces standard 30 kg bars of silver, 1 kg bars and silver powder.

Demand for silver rising consistently

Demand for silver has been rising consistently while its supply is not increasing. With the coming of Electric Vehicles (EV), demand for silver will shoot up further. Silver is considered to be one of the best electrical conductors.

That also explains the price rise of silver over the past 1 year. Silver’s price has risen by around 92% in the past 1 year. Price of gold has risen by around 56% in this period.

Hindustan Zinc shares have risen by more than 15% this year

Year-to-date (YTD) in 2025, Hindustan Zinc shares have gained 15.07%. Nifty 50 index has gained 9.12% in this period. Hindustan Zinc’s stock has outperformed the Nifty 50 index by around 6% this year. Nifty Metal index has risen by 19% YTD in 2025. Average P/E ratio at which stocks in Nifty Metal index are currently trading is 18.45. Hindustan Zinc shares are currently trading at a P/E ratio of around 20.

Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE, Hindustan Zinc