Silver rockets to all-time high, gold advances

Gold ornaments displayed for sale at a show room in Kochi. In Delhi, the gold for 99.9 and 99.5 per cent purity became dearer by Rs. 60 each to Rs. 19,200 and Rs. 19,100 per ten grams respectively. Photo: K.K. Mustafah

Silver prices climbed a new peak record at Rs. 32,030 per kg in the national capital on Tuesday, on brisk buying by stockists and industrial units in tandem with a firming global trend.

Amid reports of the metal climbing to a 30-month high in international markets, the silver in domestic markets jumped up by Rs. 405 to Rs. 32,030 per kg.

Jewellers and coins’ manufacturers purchased silver to accommodate the festival and marriage season demand. Demand from industrial units such as electrical conductor, electrical circuit and battery makers also picked up on fears of a further rise in the white metal prices.

Industrial applications including electrical conductors and batteries, mostly used in cars, accounted for about half of the silver demand.

Delhi-based bullion merchant Ravi Jalan said the demand for the white metal carrying industrial properties, is likely to rise further as the domestic economic recovery has boosted demand for electronic items.

Demand for silver coins that are used as gift items for festival and marriage occasions, will also push the metal prices.

Precious metals’ prices normally rise in last quarter of the calendar year starting with ‘Rakshabandhan’ in August, and peak around ‘Dhanteras’, an auspicous day for Hindus for buying new gold and silverware, followed by Christmas celebration in December.

Among global markets, Silver prices in London jumped by 1.9 per cent to 20.42 dollar an ounce, the highest price since March 2008. The metal has gained 21 percent this year.

Gold prices too, in line with the general firming trend, have risen on sustained buying by jewellers. The yellow metal rose by 9.52 dollar to 1,255.13 dollar an ounce in London, against its record level of 1,265.30 dollar set on June 21.

In Delhi, the gold for 99.9 and 99.5 per cent purity became dearer by Rs. 60 each to Rs. 19,200 and Rs. 19,100 per ten grams respectively. Sovereign rose by Rs. 50 to Rs. 15,000 per piece of eight gram.

Silver ready jumped by Rs. 405 to Rs. 32,030 per kg and weekly-based delivery by Rs. 370 to Rs. 31,720 per kg. Silver coins rose by Rs. 100 to Rs. 35,100 for buying and Rs. 35,200 for selling of 100 pieces.