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'Silver price may surge to Rs 1 lakh per kg'

Press Trust of India  |  Mumbai 

The price of silver could surge to Rs 1 lakh per kg mark this year in the wake of international economic situation, Bombay Bullion Association (BBA) on Tuesday said.

"The silver currently ruling at Rs 57,000 per kg, is likely to go up further and might go up to Rs 1 lakh per kg this year due to the global economic crisis," BBA President Prithviraj Kothari told reporters here on the sidelines of a function.

The prices of silver in India have more than doubled in the last two years. This will affect silver imports, which may witness only marginal growth to around 5,000 tonne this year compared to about 4,800 tonne in 2011, he said.

"In 2011, we imported about 4,800 tonnes of silver, which was 70% higher than that of 2,800 tonne during 2010. This year the silver imports may be around 5,000 tonne," Kothari said.

Talking about gold, Kothari said, gold imports are likely to be similar to that of last year. India had imported 966 tonnes of gold in 2011, according to the World Gold Council report.

Gold prices are likely to move in the range of Rs 26,000-35,000 per 10 grams this year due to the current economic crisis, he said, adding internationally gold is likely to be traded in the range of $1,600-2,200 an ounce this year.

Talking about platinum, Kothari, who is also the director of RiddhiSiddhi Bullion, said he expects the prices to rise more than gold. In the international market, gold was trading at $1,740.88 an ounce and platinum at $1,670.50 an ounce today.

India annually imports 10-15 tonnes of platinum which is mainly used in the auto industry.

First Published: Tue, February 21 2012. 21:34 IST