Is Silver going to be new gold? Here's all you need to know

Investment in gold are usually done to diversify one's portfolio, as a hedge against inflation and especially during times of economic uncertainty. However, investors could now also consider adding silver to their portfolios. With gold prices on the rise, the demand for silver could see a spike, which could lead to around a 20% increase in prices.

As per a report by Economic Times, a popular ratio that determines the relative values of gold and silver is pointing to an outperformance in silver soon, driven by a likely shift in preference to the cheaper precious metal following the recent rally in gold prices and a pick-up in industrial demand.

Gold, which is currently hovering around Rs 62,000 per 10 grams, is roughly 18% higher than the last year.

Both gold and silver have risen about 11% so far in 2023, but the rally in silver prices could sustain for longer from here on, given the robust demand for metal which finds wide industrial usage as well.

"For silver, world over, stocks are at one of the lowest levels in last 4-5 years, so there is a huge demand across the globe. Prices for silver will continue to be high," Arun Misra, the CEO of Hindustan Zinc told Economic Times. Hindustan Zinc is India's largest and the world's fifth largest producer of silver.

India is the world's largest consumer of silver, and imports as much as 90% of its requirement (about 9,500 tonnes in 2022). Industry officials said with supplies dwindling, prices may remain firm.