New Delhi: For some time now, there has been a strong rise in the price of silver. It is very close to becoming lakhtakia. On Tuesday, the price of silver jumped by a huge Rs 5000 and reached the level of Rs 99,500 per kg (Silver Price Today). Finance Minister Nirmala Sitharaman had reduced the custom duty on gold and silver prices in the Union Budget 2024. Due to this, there was some weakness in the price of gold and silver (Gold-silver Price Update). But now the price of both precious metals is skyrocketing.

Why is the price of silver rising?

Commodity market experts say that silver prices have jumped sharply due to the rise in industrial demand. Along with this, it is also getting the benefit of the sharp rise in the price of gold (Gold-Silver Rate). The trend of wearing silver jewelry is also increasing among the new generation. The upward trend of silver seems strong. He said that investors will continue to take the decline as a buying opportunity. This will give good support to silver in the coming sessions.

Where is silver used?

Even though gold and silver are mentioned together, their use is quite different. Gold is known as jewellery, investment and an effective weapon against inflation. On the other hand, silver is mostly used in the industrial sector.

Silver is less rare than gold. It is widely used in the consumer electronics industry. It is a major part of electric switches, solar panels and RFID chips. Silver is used in almost all computers, mobile phones, automobiles and appliances.

Reasons for increasing demand for silver

Along with the industrial demand for silver, the demand for jewellery is also increasing. The younger generation is liking jewellery made of silver a lot. Especially jewellery worn on hands, neck and feet. Also, the government is focusing a lot on renewable energy. This has also increased the demand for silver, as it is an important part of solar panels.

According to experts, now the price of silver will continue to rise. The use of silver in the form of photovoltaics (PV) is increasing all over the world. This technology converts sunlight directly into electricity. This is the biggest indication that there will be a strong demand for silver and its prices will rise.