Chirag Sheth of Metals Focus suggests that silver is a good investment and people must buy it whenever its price dips.
“We have been extremely bullish on silver. By end of this year, we believe that silver prices should trade above USD 30-32. Fundamentals are extremely positive for silver, both in terms of what is happening on the base metal side and also what is happening on the precious metal side,” he told CNBC-TV18 in an interview. He added they expect demand to remain fairly robust this year.
“In terms of industrial demand, India is the fourth largest consumer of silver. Eight percent of the world’s silver demand is from India,” Sheth pointed out.
He said that in the past seven to eight years, Indians have bought large quantities of silver, upwards of 15,000-18,000 tonne. “As silver prices moved up by nearly 100 percent, a lot of the investors started booking profits and that created an oversupply of silver in the Indian market,” he added.
“Volatility in silver has always been quite high compared to gold. One of the biggest reasons why the Indian market has been discounted is the absolute collapse of silver investment demand,” he explained.
For the full interview, watch the accompanying video
(Edited by : Kanishka Sarkar)
First Published: IST