Gold and silver prices witnessed a dip on the Multi Commodity Exchange (MCX) on Thursday, April 25, 2024. Gold futures maturing on June 5, 2024, declined by Rs 251 or 0.35% to Rs 70,757 per 10 grams. Silver futures maturing on May 3, 2024, also saw a downfall of Rs 293 or 0.36%, retailing at Rs 81,941 per kg on the MCX. Factors influencing gold and silver prices in India include the value of the rupee against the dollar and global demand.
According to the Silver Institute’s 2024 World Silver Survey, silver demand exceeded supply in 2023 for the fifth consecutive year. The deficit reached 142 million ounces and is projected to nearly double to 265 million ounces in 2024. The supply shortage is evident in declining COMEX vault inventories, which have fallen from 400 million ounces in early 2021 to just over 291 million ounces. Inventory in the LBMA vaults has also declined significantly. Despite rising silver prices, iShares Silver Trust ETF (SLV) shares outstanding have fallen, raising concerns about potential double counting of inventory. Experts predict that the silver deficit will drive prices higher and draw silver out of private hoards.
