Silver hits all-time high on Diwali demand

Silver surged to an all-time high of Rs 38,900 per kg in the national capital today amid frantic buying for the Diwali festival and a firm global trend, even as gold prices rallied to the near record level of Rs 20,100 per 10 grams.

Retail prices for silver spurted by Rs 1,300 in the market today to Rs 38,900 per kg, a level never seen before, while gold jumped by Rs 250 to Rs 20,100 per ten grams, just Rs 20 shy of the record price of Rs 20,120 achieved on October 15.

The trading sentiment turned extremely bullish as stockists and jewellers purchased heavily to get off to an auspicious start in Samvat Year 2067, as per the Hindu calendar.

Buying activity was brisk, with most retailers making token purchases for Diwali, considered to be an auspicious day for buying precious metals as per Hindu mythology.

The upsurge was bolstered by reports that silver surged to a 30-year high in overseas markets as dollar weakness increased the investment appeal of precious metals.

The price of silver in overseas markets, which normally sets the price trend on the domestic front, rose sharply to above USD 26 an ounce, its highest level since March, 1980. Similarly, gold rose to the record level of USD 1,394.60 an ounce.

On the domestic front, silver ready prices spurted by Rs 1,300 to an all-time high of Rs 38,900 per kg and weekly-based delivery by Rs 1,130 to fresh high of Rs 38,370 per kg.

Silver coin prices rose by Rs 300 to 43,200 for buying and Rs 43,300 for selling of 100 pieces, which are also record levels.

In a similar fashion, gold of 99.9 per cent and 99.5 per cent purity rallied by Rs 250 each to Rs 20,100 and Rs 20,000 per ten grams respectively.

Meanwhile, sovereigns rose by Rs 100 to a new peak of Rs 16,050 per piece of eight grams.