Can silver become more precious than gold? Here’s what Vedanta’s Anil Agarwal thinks

“Silver is shining” — Silver prices surged to historic heights recently with December futures crossing the Rs 1,00,000/kg mark on the Multi Commodity Exchange (MCX) for the first time. Industry magnate Anil Agarwal, Chairman of Vedanta Group, took to X (formerly Twitter) to share his outlook on silver. He highlighted silver’s transformation from a traditional precious metal to a crucial industrial resource, driven by new-age technologies.

Dhanteras 2024: How to buy silver coins, bars and other items from MMTC-PAMP online

The white metal’s stellar rise comes amid heightened volatility in the dollar index and ongoing geopolitical tensions, signaling a robust appetite for precious metals among investors.

“In India, prices have crossed Rs 1 lakh per kg! Demand has doubled from last year. Silver’s demand is being driven not just by its traditional uses but by massive industrial demand. It is now being used extensively in solar panels for renewable energy, in EVs, in advanced healthcare, electronics and many other technologies,” Vedanta boss said on X.

Agarwal said the combination of being precious and functional is rare and the demand supply gap is increasing.

“It is the new critical mineral of the future.”

The rise in silver prices

According to a report by DSP Mutual Fund, silver has outperformed other precious metals including gold.Widely used in electronics, solar panels, batteries, and increasingly in semiconductors, silver plays a vital role in modern technology. Rising industrial demand, combined with expectations of another rate cut by the Federal Reserve, is driving the metal’s market value higher.

Hindustan Zinc’s silver games

Agarwal also highlighted the significant contribution of Hindustan Zinc, a Vedanta subsidiary, in the global silver market. The company produces silver through a 100% solar-powered refinery, ensuring a sustainable production process.

“At first, making silver was a challenge, but our engineers and technologists made it possible. Today, we are one of the largest producers of silver globally, and we aim to become number one,” he said. He emphasised that all silver produced by Hindustan Zinc is sold within India, underlining the company’s focus on local markets.

Anil Agarwal’s silver plans

Agarwal also announced the development of a not-for-profit industrial park in Rajasthan, aimed at fostering downstream industries around zinc and silver production. This park is expected to boost value addition to silver, generate lakhs of jobs, and attract multiple businesses to Rajasthan’s industrial landscape.