Quote on Silver all-time high Reaction by Satish Dondapati, VP & Fund Manager, Kotak Mutual Fund
Below the Quote on Silver all-time high Reaction by Satish Dondapati, VP & Fund Manager, Kotak Mutual Fund
Silver prices are trading close to all-time highs due to strong industrial and investment demand, ongoing supply concerns, and global geopolitical tensions. Recent price swings in Silver were mainly caused by higher margin requirements announced by the CME and China’s Silver export restrictions by 1st of Jan. On Monday morning, Silver and Gold prices jumped sharply by over 4.5% and 2.5% respectively, driven by safe-haven buying after the US–Venezuela conflict news. Later, prices cooled down as investors booked profits at higher levels.
In the near term, Silver and Gold are expected to remain well supported due to strong safe-haven demand arising from geopolitical uncertainty and global economic risks. Industrial demand for Silver and continued central bank interest in Gold add to the positive outlook. However, upside may be capped at higher levels as investors stay cautious and book profits after sharp rallies. Price volatility is likely to remain high, with frequent geopolitical developments, trade policy updates, supply-related news, margin changes, and speculative activities may cause sudden price swings. Investors are advised to follow a disciplined asset allocation approach, with around 15–20% allocation to precious metals, and consider systematic investments, which may be a better option at current elevated price levels.
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