Kathmandu.Investors have recently turned their attention to silver, driven by the decreasing price disparity between gold and silver in the Nepali market. According to market analysts, current silver prices surpass those of gold, making it an attractive investment opportunity.

The price difference between gold and silver, which was 94.54 times in April last year, has gradually narrowed to 77.01 times as of April 2018. During this period, the price of gold has increased by approximately 1.39 times per tola, while silver has seen a larger growth of about 1.70 times. This trend suggests that investing in silver may yield higher returns compared to gold.

The continued narrowing of the price gap is primarily attributed to rising global demand for silver, particularly in industrial sectors such as solar energy, electric vehicles, and electronics. The surge in silver usage has led to a shortage in the local market. Traders report difficulties in supplying silver during Tihar, with many buyers opting to purchase raw silver—up to one kilogram per person—adding to the market’s scarcity.

Dilan Shakya, proprietor of Nirja Jewellers in New Road, explained, “While silver utensils and jewelry are readily available, there is a shortage of raw silver, making it difficult for artisans to produce new items.” This shortage has affected jewelry artisans and consumers alike, causing delays in manufacturing and limited access to silver jewelry.

Experts predict that silver prices may continue to rise due to ongoing shortages. Currently, the demand exceeds the supply, pushing prices upward. The price of gold has increased from Rs 1.85 lakh in April to Rs 2,58,000 in mid-October, while silver has risen from Rs 1,960 to Rs 3,350 during the same period.

Manik Ratna Shakya, former president of the Federation of Gold and Silver Dealers’ Association, noted that the higher price of gold limits investment opportunities for ordinary investors. “Silver, being more affordable, allows small investors to participate more easily,” he stated. The increased accessibility has contributed to a higher number of investors in silver markets.

The international market’s growing use of silver in electronics and industrial products, coupled with low production and rising demand, is expected to sustain long-term price stability. Traders also highlight that silver’s price tends to correlate with gold; when gold prices increase, silver prices often follow suit. Nevertheless, due to its relatively lower cost, silver presents potential for higher short-term profits.

As the market dynamics evolve, experts anticipate further price hikes for silver in the coming days, driven by persistent shortages and expanding industrial demand.