Silver prices bounced back sharply, hitting fresh all‑time highs and sending Hindustan Zinc’s stock higher.
Silver Prices Reach New Records
Silver futures on the Multi Commodity Exchange jumped about 5% in a single day, closing at a lifetime high of Rs 2,63,996 per kilogram. The May contract rose over 4% to Rs 2,70,054/kg and the July contract to Rs 2,77,924/kg. Spot silver also hit a new record, trading at $83.96 per ounce.
Hindustan Zinc Shares React
Hindustan Zinc, India’s largest silver producer, saw its shares rise more than 3% to Rs 625 in early trading. Over the past month the stock is up around 10%, and it has gained over 41% in the last six months. Its market cap now stands at roughly Rs 2.6 trillion.
Silver ETFs Follow the Surge
Silver exchange‑traded funds moved in tandem with the metal’s price rise. Most major silver ETFs rose about 4%.
- Zerodha Silver ETF
- UTI Silver ETF
- DSP Silver ETF
- Axis Silver ETF
- ICICI Pru Silver ETF
- Nippon Silver ETF
- Motilal Oswal Silver ETF
- SBI Silver ETF
- Mirae Asset Silver ETF
- Tata Silver ETF
- HDFC Silver ETF
These funds have delivered returns of up to 176% over the past year as silver prices have surged.
Why Silver Is Rising
Several factors are boosting safe‑haven assets like silver:
- Escalating geopolitical tensions, including unrest in Iran.
- Talk of possible U.S. tariffs on countries buying Russian oil, which could increase demand for non‑yielding assets.
- Speculation that the Federal Reserve may cut interest rates later this year, making gold and silver more attractive.
What Could Happen Next?
Analysts warn that the rally may face short‑term volatility. While industrial demand—especially from green‑technology sectors—supports silver’s longer‑term outlook, rapid inflows can reverse quickly if market sentiment shifts. Investors should be ready for sharp swings and consider their risk tolerance.
Disclaimer
Remember, this is perspective, not a prediction. Do your own research and consider your personal financial situation before making any investment decisions.