The demand for silver is increasing across the world. In a way, the world of silver is growing like the full moon and there are many reasons for this change. Work from home (WFH) became a necessity due to the pandemic, due to which the way of doing things also started changing. When office work shifted to homes, there was an increase in the use of mobile phones, laptops, personal computers and other electronic gadgets, in which silver is used in large quantities. The demand for silver has increased in the world for the last five years, while its supply has been hampered during the Covid period. Silver mining is decreasing and demand is increasing. At present, the price of one kg of silver is Rs. 61,000, which is estimated to increase to Rs. 74,000 this year. Industry experts believe that the price of silver can reach Rs 1 lakh per kg in the next three years. Silver has given around 63 per cent return on investment in the last four years. In India only last year SEBI approved Silver ETF (Exchange Traded Funds). ETFs are sold and bought on exchanges and like stocks, their prices fluctuate up and down. These funds provide many types of benefits to the investors.
Also Read: Meesho adopts Boundaryless Workplace Model
The demand for silver is increasing year by year and will further increase in view of the changes taking place in the economies globally. Silver has many uses in the technical field, due to which its demand is increasing worldwide. Silver is used in many 5G devices. 5G technology is expected to consume up to 500 tonnes of silver by the year 2025. Similarly, in the next four years, the automobile industry, particularly the car industry, is expected to consume 2,800 tonnes of silver at an annual growth rate of 22 per cent. Silver is used in some medical devices used to treat respiratory problems and Covid related complexities. The importance of green energy is being understood by everyone, so the demand for solar energy is increasing and there is a lot of use of silver in its equipment. Silver is the metal with the highest thermal conductivity and, being the most reflective metal, is an important part of solar panels. Domestic demand for silver will increase with the Productivity Linked Incentive (PLI) schemes launched by the government to attract photovoltaic cell manufacturing in India.
This metal is increasingly being used across the globe in another rapidly growing segment, that of water and air purification. Silver is an important aspect of the jewellery market. Jewellery accounts for 34 per cent of the total silver demand in the country. The demand for silver in the year 2020 was more than 1000 metric tonnes. Not only is silver cheaper than gold and platinum, but it also has a plethora of latest designs in the new age which attract the modern youth. The anklets of women’s feet are made of silver only. Another important feature of silver jewellery for married women is nettles worn around the toe, which are believed to be useful in improving fertility. Overall, due to the popularity of technology, the demand for silver is on the rise almost all over the world and will continue to increase.