The fresh rise means price of silver has more than doubled in a year´s span. Silver price was hovering around Rs 500 per tola in April, 2010.[break]
Tej Ranta Shakya, president of Nepal Gold and Silver Dealers´ Association, told Republica that uncertainties due to crisis in Libya is still the major cause behind rise in prices of precious metals. “Rising price in international market due to weak dollar has pushed up the price of silver in domestic market,” Shakya said, adding that the price is likely to be cross Rs 1,200 per tola mark within a few days.
Growing industrial demand for silver in the international market is the other reason behind rise in price of silver in the domestic market. Silver has been showing an upward spiral in domestic market since last week.
Shakya said growing industrial demand for silver in Japan, where most of the industries are in the reconstruction phase after the massive earthquake and tsunami, is the other reason behind rising silver prices. “Price of silver has grown massively over the past two years. The rate of increment in price of silver is more than that of gold,” he added.
Gold price has increased by 25 percent this year as compared to last year.
Traders see silver price moving to uncharted territory in the days to come due to rising industrial demand and upward spiral in crude prices. Daily demand of silver in the domestic day has dropped to less than 20 kg from 30-35 kg of normal days.
Traders, however, are hopeful of daily demand rising within a few days due to wedding season. “We expect the daily demand to 40-50 kg,” said Shakya. He further added that most of the traders have used up silver in their stock due to heavy price rise.
Meanwhile, the price of gold on Monday dropped by Rs 100 per tola as compared to prices recorded a day earlier. The yellow metal was traded at Rs 41,250 per tola on the day.
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