Silver lining? Metal at record levels, but discount too is high

A small price correction is seen where demand is expected to return

Silver prices on Thursday hit a record high in Mumbai’s spot market, closing at Rs 75,869 a kg.

However, even at higher prices, the white metal is quoting at a sharp discount to the futures and cost of import due to lack of demand.

The spot cash market is quoting silver at a discount of Rs 5,500 per kg to the futures price on the MCX, while the discount to the landed cost of silver is Rs 3,000 per kg. Even at such a high discount, there is no liquidity (demand).

Chirag Thakkar, director, Ahmedabad-based Amrapali group, said “the market