Silver Rises ₹100 per 10 grams to ₹2,750 on Monday 

Mumbai, April 20: Silver prices made a strong rebound throughout India on Monday to recover last week’s losses and boost investors’ riches as tensions in the Middle East escalated.

Nationally, silver is now priced at ₹275 (in ₹ per gram) which translates into ₹2,750 (₹ per 10 grams) and ₹2,75,000 (₹ per kg), according to Goodreturns.in. This ₹100 rebound from Friday’s national benchmark of ₹2,650 comes after profit booking and de-escalating Iran tensions sank prices on Friday. Investor appetite for safe havens returned with a vengeance on Monday as hopes for a ceasefire agreement between the US and Iran were dashed almost as soon as they were announced.

Silver Prices City-wise

Delving into the city-specific prices, we find that Mumbai, Delhi, Kolkata, Bangalore, and Pune are all quoting silver on Monday at ₹2,750 (₹ per 10 grams), a ₹100 rebound from Friday’s ₹2,650 (₹ per 10 grams). Vadodara and Ahmedabad’s silver prices, which usually shadow Mumbai prices quite closely, were available at ₹2,749 (₹ per 10 grams). That ₹1 difference is basically negligible, especially when you consider where Vadodara and Ahmedabad’s prices were before today’s gain: ₹2,650 (₹ per 10 grams). The premium markets of Chennai, Hyderabad, and Kerala were trading at ₹2,800, up ₹50 from Friday’s close of ₹2,750. Since every Indian city, tracked by Goodreturns, showed gains Monday, we can say that Monday’s silver price recovery was truly widespread.

Why Did Silver Prices Jump?

What’s fuelling Monday’s silver rally is ongoing tensions between Iran and the US. After briefly agreeing to a ceasefire over the weekend, both countries ramped tensions back up on Sunday night into Monday morning. The US seized an Iranian cargo ship trying to breach its naval blockade Sunday in the Bandar Abbas province, while Iran responded with threats of “quick retaliation” on Monday and announced it would not take part in peace talks scheduled for Tuesday. With the Strait of Hormuz once again closed—through which roughly 20% of global energy passes—the flight to safety resumed in earnest on Monday and precious metals became the main storyteller. Both gold and silver benefitted, but silver in particular since it’s not just a safe-haven asset; it’s an industrial commodity as well.

Silver’s Industrial Role

Silver is used all throughout solar panels, many electronic devices, and electric vehicle components. In other words, if a war in the Middle East significantly disrupts supply chains again, silver prices should remain bid as manufacturers scramble for materials. The Strait of Hormuz isn’t just important for oil, it’s important for the production of goods around the world. While investors were quick to flee safe havens on Friday as Iran appeared to stand down, there may be more room on the upside for silver this time around as global production and supply chains are threatened with a prolonged closure. Keep in mind that demand for silver remains firmly planted in solar panels, electric vehicles, and electronic devices globally. The ongoing energy transition is still extremely silver bullish, even on days where safe-haven demand wanes.

Gold Prices Jump Too

Monday’s gains were shared with gold as well. 24-karat gold prices in India are currently ₹15,529 (₹ per gram), or ₹1,55,290 (₹ per 10 grams). That’s a ₹1,090 gain from Friday’s close of ₹1,54,200. Silver and gold tend to move in the same direction majority of the time, so as long as investors fear the ceasefire will crumble once again, gold and silver should remain elevated.

Oil Prices Rally

Oil prices jumped Monday and sent yet more positive momentum silver’s way. Brent Crude Oil Futures rose over 6% to about $96.49 a barrel, while West Texas Intermediate crude oil prices climbed to $90.38 a barrel, recovering most of Friday’s monstrous 9% crash after the Strait of Hormuz was closed once again. Rising oil prices means higher inflation expectations, so silver enjoys safe-haven and inflation-hedge properties at the same time.

Source:

• goodreturns.in