As most of us aware of, silver prices in India are influenced by global silver prices. It is therefore instructive to understand what impacts prices of silver globally and in India…

Silver supply is concentrated in certain countries like Australia, Bolivia, Mexico and Kazakhstan. Hence supply disruptions in any of these key mines can have the impact of pushing up prices of silver as silver tends to be very sensitive to supply shocks.

On the demand side, economic growth, higher production and new manufacturing facilities can push up prices due to a spurt in demand. This is more due to silver demand already being in excess of supply.

Lastly, speculative positions on silver also impact the spot price of silver. When traders are excess long in the market, it tends to create a cap on the price while too much of net shorts in the market tend to create a floor for the price of silver.