Increasing solar power generation in the country and elsewhere, along with rising industrial demand from the US and China, has pushed silver prices up 8% in January and the trend is likely to continue through the year.
Solar photovoltaic cells use silver paste to conduct electricity, and India’s move to boost solar power bodes well for the metal.
“Silver prices are expected to continue moving higher in the year 2017 backed by a strong pick up in the physical demand as a result of increasing use in solar power globally. India’s increasing demand for solar power will further add to the momentum,“ said Himanshu Gupta, chief market strategist at Karvy Commodities.
“Increased industrial usage on account of a demand pick up from China and US is also likely to boost prices and last but not the least the safe haven demand being a close proxy to gold is also likely to support the prices in the wake of US policy uncertainty and European elections,“ Gupta said. Read More…