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Silver prices are increasing due to electric vehicles.

There was a time when shining coins during festivals, tinkling bangles at weddings and decorated bowls in puja plates… all these were the hallmarks of silver. But today that same silver has become the speed of the future. As the world is moving beyond petrol and diesel towards electric vehicles, silver is also moving forward quietly but strongly. The increasing demand for silver in high-conductive electronic parts and battery systems used in EV vehicles has again made this metal special in the eyes of both investors and the market. The result is clear, silver is now not only shining, but is also showing a rise in its prices.

silver prices Has given tremendous returns in the last few months. If we look at the data of last 20 months, silver has crossed Rs 1 lakh to Rs 4 lakh. The price of silver on MCX in May 2024 was Rs 90,000 per kg. Today this price has crossed Rs 4 lakh. On Thursday, the price of silver on MCX rose by Rs 21276 to Rs 4,06,642, which is its all-time high level. Talking about the last 27 days, silver has gained Rs 1,42,800 per kg. If we talk about the last 27 days, silver has given returns of more than 60 percent. Such a boom has neither been seen in the stock market nor in gold.

For this reason, investors are increasingly inclined towards the silver market. Now the biggest question is whether this momentum will continue or the period of profit booking will begin.

Why have silver prices become a rocket?

The biggest reason behind this historic rise in silver prices is the tremendous surge in its industrial demand. Whereas earlier a large part of silver was consumed in jewelery and coins, now it is increasingly being used in industries. The more technology advances, the deeper the need for silver becomes.

Experts believe that this demand is not temporary but structural. This means that as the world moves towards technology and clean energy, the need for silver will also increase permanently.

How electric vehicles changed the fortunes of silver

The revolution of electric vehicles has given a completely new twist to the story of silver. Governments around the world are now promoting electric vehicles as an alternative to petrol and diesel vehicles. According to international reports, by the year 2030, every third new vehicle running on the roads could be electric.

The design of electric vehicles is completely different from other vehicles. Instead of engines, they have complex electronic systems, which are completely dependent on electricity. Silver is used in battery management system, power control unit, motor, sensor and charging system. In such a situation, silver, which is considered the best electrical conductor metal in the world, becomes necessary.

According to experts, an electric car requires many times more silver than petrol and diesel vehicles. This is the reason that as EV production is increasing, the industrial demand for silver is also reaching new heights.

The real reason is less supply and more demand.

While industrial demand is increasing rapidly, the supply of silver is not increasing as fast. Silver usually comes from copper, zinc and lead mines. This means that opening new mines just for silver is neither easy nor possible quickly. According to the report, silver production in the global market has remained completely stable for the last five years, while industrial use has registered an increase of more than 20 percent so far. This imbalance is now visible in the market also.

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Changing thinking regarding silver in India

In India too, the attitude towards silver is changing rapidly. While earlier investors mainly relied on gold and real estate, silver is now being viewed as an industrial asset. Experts believe that in a developing country like India, where emphasis is being placed on electric mobility and solar energy, the demand for silver will be even stronger. Now its value is not only linked to traditions but also to the industrial progress of the country.

Silver will break more records in the future!

Currently, silver prices are at historic highs. Market analysts believe that if industrial demand continues at this pace and there is no major improvement in supply, then silver may see even higher levels in the future. Although slight fluctuations are possible, looking at the market situation it can be said that silver will become stronger in the coming time.

Silver will become stronger in future

To call silver merely a shiny metal today would be underestimating its role. Solar energy, electric vehicles and modern medicine, silver is at the heart of all of them. This is the reason why it is now being called 'strategic metal'.

The metal which was once kept locked in safes, has now become the backbone of future technologies. While gold will remain a symbol of stability and security, silver is becoming the identity of the changing world. If the world continues to move in this direction in the coming years, then this shine of silver will not be limited to prices only, but will lead the world towards new progress.

Read this also :- Gold will be worth Rs 3 lakh and silver worth Rs 7 lakh in 2027! This giant bank predicted