Key Points
However, in the past few years, it has become an important portfolio diversifier along with Gold, Kishore Narne, Director, Head - Commodities & Currencies, Motilal Oswal Financial Services said.. Looking at the potential of silvers usage in green technology and overall safe-haven buying, we continue to stick to our stance that silver could outperform gold on a medium to long term horizon, he said..
Silver has been very volatile this year gaining 6% year-to-date on the domestic front; similarly, gold has tested its extremes on both sides and is now steadily gaining momentum posting gains of 11% YTD..
In the month of November month-to-date, gold has slightly inched higher while silver has gained by 2%, following an up-move in industrial metal as well.. Silver is a mix of both industrial and precious metals and hence volatility also tends to be higher in this commodity..
There are a few major themes in focus this year central banks' monetary policy action, geo-political tensions, economic data points highlighting the strength of the economy, Chinas economic development, volatility in the Dollar Index and US bond yields along with overall demand-supply dislocation, providing jerks to both industrial as well as precious metals...
It is also important to note that, if inflationary concerns rise once again or economic data points show no signs of a slowdown, it could indicate that the Fed has more room on the higher side to raise rates and that could increase significant pressure on Gold and silver prices...
