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Silver demand is on the rise

FXStreet (Mumbai) - Silver appears to have stabilized as demand, particularly from India, is on the rise.

Silver weakened more than Gold off-late as investors ditched the safe haven metals amid a threat of a global growth slowdown. However, the demand for Silver is rising in the isolated markets like India. “There is a tsunami in silver. Investors are pouring in,” said Ashish Mundhra, managing director of Mundhra Bullion, an Indian dealer.

Moreover, the demand for Silver has continued to rise in India post Festival of Diwali this year. Usually, the demand peaks around the Diwali festival, however prices at four year low may have triggered a bargain hunting demand. The premium Indian consumers pay on the global price for silver has increased to 17 cents an ounce, up from three cents to four cents a couple of months ago.

Elsewhere, the U.S. Mint said sales of silver American Eagles hit 5.79 million ounces in October, up from 4.14 million in September.

Silver for December delivery traded 0.22% lower at USD 15.6453/Oz levels at the time of writing, while Gold futures traded at USD 1164.20/Oz levels.

Silver Technical Levels

Silver has a strong resistance at 15.88, above which the prices can rise to 16.22 levels. Meanwhile, prices may re-test 15.20 levels if the metal falls below the support located at 15.445 levels.

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