Kedia Forecasts Silver to Surge in the Green Energy Era
Ajay Kedia, the director at Kedia Advisory, in a recent interview, projected a sharp increase in silver prices, predicting a rise to 150,000 rupees per kilogram in the next eighteen months. This uptick is attributed to escalating demands from industries pivotal to the green energy shift. Silver, traditionally driven by the photography sector, is now increasingly in demand for applications in solar panels, electric vehicles, and advanced technologies.
With the gold-to-silver ratio at approximately 83, a drop from the peak of 126 during the tumultuous period of 2020, Kedia suggests that a further decrease in this ratio could see silver prices doubling. India's silver imports have seen a fluctuation, with a reduction from the previous year, despite the push for solar energy reflected in the recent interim budget's allocation of 750 billion rupees for free electricity units.
In the realm of gold, Kedia anticipates a supportive environment due to potential rate cuts by the US Federal Reserve, the ongoing acquisition by central banks, and persistent global tensions, suggesting $2,700 per ounce as a 'fair' price for the precious metal. Despite recent price rallies, Kedia advises investors to consider Systematic Investment Plans (SIPs) for gold acquisition, indicating an upward trajectory for the metal.
The analyst's bullish stance extends to base metals, with copper taking the spotlight due to the recovery signs in the Chinese economy and the burgeoning electric vehicle industry. Kedia expects London Metal Exchange (LME) copper to reach $12,000 per tonne within a year. Similarly, he predicts an upward movement for zinc prices but acknowledges potential pressure from surplus supplies.
