Silver Price Movement and Future Outlook

Silver Price Movement and Future Outlook

India’s growing industrial sector is a major driver of increased demand for silver. In India, silver has a unique cultural and economic significance. Silver is used in traditional adornments, investment assets, and key raw materials in the manufacturing sector.

The metal has exceptional electrical conductivity; from electronics to solar panels, medical equipment, and water purification, silver has a vital role in the manufacturing and technology sectors. This article will explore uses, demands, and silver price trends in India, along with the silver price outlook in India.

Use of Silver

Silver has both industrial and non-industrial uses. Silver is used in the electric sector, medical & Water purification alone with some emerging uses like Nano-Composites, and hydrogen fuel cells.

Use of Silver

Along with industrial uses, silver is used in Sculpting & jewellery, silver utensils, and contains and as a financial investment asset.

Non Industrial Uses of Silver

Top silver mining countries in the world

Mexico of the top silver producers in the world followed by China, Chile, and Russia. The global supply is dependent on these countries and any disruption can cause fluctuation on the silver price chart.

  1. Mexico: Mexico is the biggest silver-producing country in the world, in 2022, Mexico produced 6600 metric tons, and the production of silver is expected to grow along with the demand.
  2. China: the country is the second biggest producer of silver in the world, and the country’s ranking hasn’t changed since 2020. China produced around 3600 metric tons of silver.
  3. Peru: The silver production in Peru is steadily growing, the country managed to produce 3100 metric tons of material in 2023, and the production in Peru has decreased from 4,160 metric tons in 2018.
  4. Chile: Chile produced 1600 metric tons in 2023, the Chile is estimated to have a silver reserve of 26000 metric tons.
  5. Russia: Russia produced 1300 metric tons in 2023. The silver deposits of Russia are estimated at 45,000 metric tons.

The future silver price outlook depended on production numbers from these countries.

Top silver mining countries in the world

Industrial Demand for Silver in India

India’s electronics and solar energy sectors are growing with the help of domestic demand and favorable government policies. The electronic sector is one of the highest demands with 40 %. followed by the food industries and pharmaceuticals.

As the electric and electronic sector is growing, it shows a positive silver demand outlook, and this positive outlook can cause the silver price chart in India to move upward.

Industrial Demand for Silver in India

Factor on Which Effect Silver Price in India and Global

The silver price in India and globally can be affected by various factors like Supply-demand equations, geopolitical tension, oil Price, US dollar index, gold rate, economic situation, and industrial demand. These factors affect the silver price chart in India & globally.

Supply-demand equation

The top 5 countries produced around 60% of the total silver in the world. As the global demand for electronics increased along with solar panel demand massive growth in demand for silver. The growth in demand caused an increase in the silver price chart in India. This increased demand suggests a positive silver price outlook.

Fluctuation in the US Dollar Index

A soaring US dollar can cause silver prices in India to drop, whereas a falling dollar causes silver prices to rise. The price of silver rises when the value of the US dollar falls. The Dollar Index fell from 105.66 in Mar’23 to 101.7 in Dec’23.

Gold Rate

If the price of gold rises as a result of increased demand, silver prices in India & globally usually follow suit. Similarly, any decrease in gold rates mostly results in a decrease in silver rates.

Geopolitical Events

As 60% of total silver is produced by 5 top countries any geopolitical tension can cause supply chain disruption which could have a negative silver price outlook.

Economic Conditions

Inflation: Silver is viewed as a hedge against inflation. During times of high inflation, financial institutions might push silver price trends in an upward direction, thus pushing up its cost.

Industrial growth: Solid industrial growth prompts more interest in silver in manufacturing, increasing costs. A stoppage in modern action makes a contrary difference.

Oil Prices

Silver mining is required oil during the mining process and crude oil is directly influenced by the silver price chart in India and globally. a significant change in oil prices might slightly impact silver prices, and the effect might not be consistent in both directions (upward or downward)

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