New Delhi: Silver prices are predicted to rise due to a confluence of factors, including increased demand and reduced supply, according to a recent report from ICICI ETF.
The report also states that the silver market is expected to have a deficit of 3,339 tonnes by the end of 2025.
According to the study, this projected deficit marks the fourth consecutive year that the silver market will face such a situation, which will ultimately drive silver prices higher.
However, despite the fact that there is a positive trend in these deficits, the projected deficit for 2025 indicates a substantial reduction from previous years. The deficit was 7,076 tonnes in 2022 and is projected to reduce to 3,339 tonnes by the end of 2025.
The increase in silver demand was primarily driven by industrial applications, particularly the electrical and electronics sector, which saw a 49% increase between 2016 and 2024.
Furthermore, the photovoltaics sector, which includes the solar panel industry, has expanded considerably, increasing silver demand, which is projected to reach 5,548 tonnes by the end of 2025.
Furthermore, its antibacterial qualities are critical in medicine for wound care and water disinfection. Beyond contemporary technology, silver is valued for its beauty and historical significance in jewelry, coinage, and decorative items.
The July silver contracts on the Multi Commodity Exchange (MCX) increased by Rs 483 per kg, or 0. 46%, to Rs 105,400 per kg as of 10:16 am IST. Silver futures reached an all-time high of Rs 1,09,748 per kilogram on the MCX last week.
Earlier this month, silver prices surpassed the USD 35 per ounce threshold, reaching their highest point since March 2012, supported by a confluence of factors including a weaker US dollar, increased geopolitical tensions, and strong industrial demand.
