Investment and speculative demand take silver prices higher

CHENNAI: Increased investment and speculative demand are the reasons for silver's price increase and it is expected to continue, said an analyst.

"Silver has outperformed gold in the last three weeks. Higher investment and speculative demand are the reasons for the price increase," Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities told IANS.

He said the May futures price at MCX India was Rs 77,010/kg.

"Silver is giving better returns than gold and hence investors are putting their money on this metal. Though 70 per cent of silver is used in industrial production, still the returns are good," Jayantilal Challani, President, Madras Jewellers and Diamond Merchants Association and a partner in Challani Jewellry Mart told IANS.

Challani said the silver price was Rs 77 per gram on Thursday and Rs 79 on Friday.

The retail price will be about Rs 83/gram.