Traders advise caution as silver hits 7-year high

Mumbai: As silver in rupees rose to a seven year high of Rs 57284 per kilo on MCX , a trade constituent and analyst advised caution as the so-called gold silver ratio had corrected to 86 from 120. This means shortly they expect gold to outperform silver.

"Base case was for Rs 58000 and now that we are there, it's better to stay away," Modak said. "Retail punters should be wary at the current level, as profit booking could cause a correction."

Gnanasekaar Thiagarajan, director, Commtrendz, said that while prices could test the Rs 60000 -65000 forecast in the medium term , investors should buy on dips , closer or Rs 55000. "Better to not enter at these levels," he said.


The ratio implies how many times gold trades at to silver. The normal of late has been 80 times , which has risen to 120 times recently with gold of 99.5% hitting record highs of 49000 plus (ex-GST).