Silver prices exceed ₹1 lakh, attracting investor interest

Silver prices have recently crossed ₹1,00,000, making it an attractive investment opportunity. The increase in silver prices follows a significant rise in gold, which has reached an all-time high. Silver is commonly used in a variety of industries, including electronics, solar panels, and electric vehicles. The growing demand for 5G technology and increased semiconductor production have also contributed to silver's rising consumption. Historically, when silver reaches a new high, it tends to continue to perform well. In the past month, silver futures have increased by 6.6%. An analysis of past performance shows that silver often yields positive returns after surpassing previous highs. For example, there have been instances where forward returns after such breakouts have averaged over 5% in three months and nearly 29% over 12 months. Investors might benefit by allocating some of their portfolios to silver. The current supply of silver isn't keeping up with demand, creating a potential shortage according to the World Silver Survey 2024. As the market trends upward, silver's demand may increase even further. However, potential investors should be cautious. Silver can be more volatile than gold, which means prices can fluctuate more dramatically. Despite this risk, investing in silver could provide a good hedge against inflation and market uncertainty. Moving forward, many are watching to see how silver performs after its recent breakout.