Silver closes at all-time high of Rs 15,675

Spot silver closed at an all-time high in the Mumbai bullion market at Rs 15,675 per kg, following renewed buying by stockists and tight supply in the market.

Silver prices touched 22-year highs in Asian markets, and has recorded a 45 per cent jump in the last 12 months. In March alone the price has risen a record 14 per cent. In the bullion market trading sentiment too picked up as arrivals declined, creating tight stock supply and pushed prices up.

Silver on Monday shot up by Rs 465 to Rs 15,675 per kg from previous close Rs 15,210. Silver prices have risen by Rs 985 in the last four day sessions and prices crossed the Rs 15,000 mark on March 24, 2006.

Silver prices in the global market recorded a 22 year high, Spot prices for silver rose as high as $10.86 an ounce, the highest since September 1983, before easing to $10.85-10.88. It closed at $10.72-10.75 late in New York on Friday.

"These market signals are positive as the prices are at multi-year highs. The weak dollar is one of the factors that, in general, could aid precious metals. Apart from other indicators, the price chart for May shows a positive and clear uptrend," market analyst said.

"This year, silver has outshone gold. Sentiment for silver is bullish. Silver's popularity amongst investors has increased not only because of its investment nature but also because of its growing usage in industries," the analyst said.

Real consumers are absent from the market due to high prices, said a local trader. Gold traders are shifting their attention towards silver as an investment option, which is the reason silver is outperforming gold, the trader said.

The government was selling its impure 92 touch silver from Kolkata and Hyderabad mint for the last six months and recently the exhausted its stocks.

So far the government has sold about 2,000 tonne of silver this year out of the total annual requirement of about 3,000 tonne per annum. Hence, India is going to import 1,200 tonne of silver this year.