Bangalore: At this time, when people are discussing about the returns that gold has delivered in the past four years, silver’s value has also increased. The prices of silver has sprung up to 75,020 per kg in 2011 which is a remarkable gain of 354 percent. Though the price of silver has fallen down to much affordable rates of 54,000 per kg. Jayant Manglik, President of retail Distribution, Religare Broking told The Economic Times, “There is still some steam left in silver. Bullion is expected to go up, so silver prices too shall rise steadily in the medium to long term.”

The reason for the push in the value of silver

The availability of silver is effortless and it has diversified use, so it is preferred by the investor and is placed high in the industrial list. It is an ideal substance to be used in various industries from electronics to pharma because of its characteristics like being malleable, ductile and strong to endure high temperatures. Due to the technological advances, the scale of usage of silver has also expanded.

The demand for it is more than its supply and so the gap has been enlarged, this is one of the reason for the rise in its price. The price has further thrusted up because of the global economic uncertainity and the depreciation of the rupee. Most of the Central banks and Governments of various economies has frozen the supply of silver thus making it more rare and valuable. Silver can evade the inflation if there is the lack of confidence in the fiat money and the financial system.