Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Commodities»Learn with ETMarkets: As silver surges ahead, here’s how to trade this precious metal
    Commodities

    Learn with ETMarkets: As silver surges ahead, here’s how to trade this precious metal

    October 13, 20245 Mins Read


    Silver, a versatile metal, is experiencing a significant rise in demand in both industrial sectors and as a precious commodity. Over the past few months, silver has gained momentum, with prices in the Indian market climbing from Rs 81,000–Rs 82,000 per kilogram in August 2024 to Rs 91,000–Rs 92,000.

    Market Outlook

    One of the primary drivers of the recent surge in silver prices is the growing demand for metal in industrial applications, especially in green technologies like solar energy. Silver is a key component in photovoltaic cells used in solar panels, and with the global push for renewable energy, this demand is expected to continue rising. As nations like India and China expand their clean energy infrastructure, silver’s industrial use becomes even more crucial.

    China, as a leading consumer of silver, also plays a critical role in shaping market dynamics. The country’s recent economic stimulus efforts, particularly in the infrastructure and manufacturing sectors, have bolstered demand for silver. Additionally, China’s recent rate cuts to spur economic growth and support its slowing economy are creating a more favorable environment for metals like silver.

    The US Federal Reserve’s rate cuts started from September 18 2024 is another factor driving silver demand. As the Fed moves to lower rates to combat a slowing economy, precious metals like silver tend to benefit. Lower interest rates generally weaken the U.S. dollar and reduce the appeal of interest-bearing assets, making silver an attractive alternative for investors seeking to preserve value. India’s upcoming festival season, which kicked off in September and runs through the year-end, also plays a role in supporting silver demand. With the Government’s budget day import duty cut already pushing the demand high among retail and HNI on buying precious metals, silver has seen a strong surge post minor correction from July3 budget day. Indian consumers traditionally buy silver and gold during festivals like Diwali, pushing up demand and prices during this period.

    Lessons for Investors
    For investors, silver presents an opportunity for portfolio diversification, offering both industrial utility and value as a hedge against inflation and economic uncertainty. The dual role of silver as a precious and industrial metal makes it a unique asset that can provide stability and potential upside during periods of economic turbulence. Investors with a long-term view should consider silver’s growing role in the clean energy sector, which will likely sustain demand in the years to come. Strategic market timing is also essential. While silver prices have surged, long-term investors should be cautious about short-term volatility. Buying silver on dips, especially during times of profit booking or overbought conditions, can prove advantageous. Maintaining a diversified portfolio that includes a balance of precious metals can provide both security and growth potential.

    Technical Insights
    Technically, silver is showing strong bullish momentum, trading within a rising trendline pattern. The symmetrical triangle formation currently visible on the chart is indicative of a continuation pattern, where prices fluctuate within narrowing support and resistance levels. Symmetrical triangles typically represent consolidation phases before a breakout, and in the case of silver, it points to the potential for continued upward movement.

    The MACD (Moving Average Convergence Divergence) indicator supports the bullish outlook. MACD, a momentum indicator that helps gauge market strength, is currently in a positive trend. The MACD line is above the signal line, suggesting upside potential. As long as the MACD remains positive, the overall market sentiment for silver is expected to stay bullish.

    Silver’s price is currently trading at Rs 92,500, reaching the 100% Fibonacci extension level of the previous rally from Rs 79,500 to Rs 88,500 in August 2024. After taking support at Rs 82,500 in September, silver found renewed strength due to heightened geopolitical tensions surrounding Israel and Iran, coupled with the U.S. interest rate reversal. These developments have added to the metal’s safe-haven appeal, keeping market participants bullish.

    However, traders should remain alert for potential profit booking as silver approaches overbought zones. The falling trendline resistance around Rs 92,500–Rs 93,000 could act as a barrier in the short term. Despite this, the overall bullish view remains intact, with strong support levels at Rs 85,000–Rs 87,500. If silver manages to break above the resistance, it could rally further toward the short-term upside potential of Rs 95,000–Rs 96,000, making a buy-on-dips strategy a viable option for investors.

    Conclusion
    In summary, silver’s recent surge is driven by a combination of industrial demand, global economic trends, and festival buying in India. The metal’s pivotal role in clean energy, along with the supportive macroeconomic environment, positions silver as a key investment in the coming years. For investors, silver offers both diversification benefits and growth potential, especially as part of a long-term portfolio. While technical indicators point to continued bullishness, caution is advised in the near term, with resistance levels and overbought conditions potentially leading to profit booking. Maintaining a strategic approach, focusing on buying during price dips, and keeping an eye on global developments can help investors navigate silver’s price swings effectively.

    (The author is Vice President Research – Currency and Commodities at LKP Securities)

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Agricultural research boost: PAU secures Rs 4 crore GoI project for predictive breeding of guava | Ludhiana News

    Commodities

    The 9 new heavy metal songs you need to hear this week

    Commodities

    Colorado’s soil health program takes a hit as the federal government pulls millions in funding from the Climate Smart Commodities grant 

    Commodities

    The brilliant new metal bands you need to hear in August 2025

    Commodities

    Metal Hammer Tracks Of The Week: August 1, 2025

    Commodities

    Amazon joins innovative partnership to launch first-of-its-kind energy project: ‘It’s a triple win’

    Commodities
    Leave A Reply Cancel Reply

    Top Picks
    Precious Metal

    A’ja Wilson Says Kahleah Copper Is ‘That Bitch’ After Olympics Win

    Investments

    Chinese sovereign fund CIC to sell US$1 billion of US private equity investments: sources

    Cryptocurrency

    Why Virtual Numbers and Cryptocurrency Are a Perfect Match for Privacy-Focused Users

    Editors Picks

    FIP Silver Caltanissetta – Godallier, Joris et Hugounenq poursuivent l’aventure

    April 5, 2025

    GSCI Precious Metal Historical Data (SPGSPM)

    April 9, 2025

    Le Silver Nova réalise le premier soutage GNL d’un navire de croisière dans la zone Asie-Pacifique

    February 25, 2025

    Terrorists fire at Army vehicle in J&K’s Rajouri, no casualties reported

    February 24, 2025
    What's Hot

    Tailored solutions, faster access: How fintech infra can democratise financial services for MSMEs

    August 26, 2024

    Cryptocurrency News Live: Bitcoin, Ethereum, Solana, Dogecoin prices today; check latest market updates on other tokens, memecoins

    June 26, 2025

    India’s Agricultural Sector May Escape Major Losses From Trump’s Tariffs- Here’s How

    April 3, 2025
    Our Picks

    Henry Ford Wasn’t Satoshi Nakamoto, But Auto Entrepreneur May Have Predicted Bitcoin

    October 21, 2024

    India To Navigate Global Disruptions With Long-Term Investments: N Sitharaman

    April 17, 2025

    PRYPCO Mint marks groundbreaking milestone with AED 9mln in tokenized property investments in just one month

    July 17, 2025
    Weekly Top

    CMP Next Edge 2025 Critical and Precious Metals Short Duration Flow-Through Limited Partnership Raises $9,353,250 on First Closing

    August 1, 2025

    Colorado’s soil health program takes a hit as the federal government pulls millions in funding from the Climate Smart Commodities grant 

    August 1, 2025

    Why finding the right property manager is a must

    August 1, 2025
    Editor's Pick

    5 Canadian Dividend Stocks Every Single Investor Should Own

    February 21, 2025

    9 Highest Dividend-Paying Stocks in the S&P 500

    May 22, 2025

    Maryland Department of Agriculture Showcases Programs Throughout Maryland State Fair

    August 27, 2024
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.