Kathmandu. Likewise, the price of gold has also been increased lately. The price of silver is Rs 3,325 per tola in the Nepali market on Monday. This is the highest price ever.
Gold is considered a safe investment, but it is also used in the silver industry. Therefore, silver is not a completely safe investment like gold. Experts say that if there is a slowdown in the industry for some reason, then no one can stop the price of silver from falling. According to them, it is risky to invest at this level when the price of silver is rising rapidly.
Why is silver rising?
The rise in silver price is due to increased demand from the electric vehicle and electronics industries, geopolitical uncertainties and supply crunch. The industrial use of silver is not widespread, so it is difficult to reduce demand.
Will the price drop?
Considering the current prices, the supply will increase. This will reduce the possibility of further price increases. Trade and political tensions are expected to ease. This will also affect the price of silver. History shows that silver has declined after such a rise and it can be very risky to invest at such a high level.
About one-third of the total silver demand is investment. As a result, the price ratio between gold and silver (which is currently unusually high) can change rapidly. This interest in silver seems to be driven more by the fear of losing than by the search for safe investments.
What is the effect of increasing supply?
The pressure seems to be easing due to lack of silver supply. U.S. reserves are being depleted to increase ETF assets. Earlier, US stockpiles were increased due to the fear of imposing tariffs on silver by President Donald Trump. However, this did not become a reality.
Bottlenecks in the supply of silver from copper mines are also being addressed. Because silver is a byproduct of copper. The demand for silver in the EFT industry is also influenced by government policies. Where subsidies significantly affect the level of production. This means that prices may fall as supply increases.
