In the month through August 5, silver has risen 44.6% to Rs 71,200 a kilo, according to trade body IBJA’ s PM rate. Gold of 995 purity has risen 14.7% to Rs 55,226 per 10 gm over the same period. Both rates are exclusive of GST.
The gold silver ratio has dropped from 97.78 a month ago to 77.56 on August 5, which simply means that a month ago around 98 ounces of silver were needed to purchase an ounce of gold , now just 77.56 ozs are needed.
Silver, which hit a high of Rs 75000 in 2011, is expected to continue its outperformance in part because of resumption of industrial activity globally, as it’s viewed as both a precious and industrial metal, said Sriram Iyer, senior research analyst, Reliance Securities.
The ratio is now expected to hit the decadal average of 69, according to Iyer.
Amit Modak, CEO, PN Gadgil & Sons expects the white metal to hit a fresh high in the coming days.
Aditya Pethe, director, Waman Hari Pethe Jewellers, having 26 stores across multiple states, said that clients were piling up on gold bars and coins since the past week in light of the soaring price. However, jewellery offtake was absent.
Shekhar Bhandari, president, Global Transaction Banking, Kotak Mah8ndra Bank, said he expected gold to consolidate around current levels , given factors like negative interest rates and a weaker dollar . “Definitely it’s not fading for now, he said.
