Commodities

MUMBAI: Silver prices are set to touch the Rs 27,000-mark a kilogram in forward market by December, following renewed retail as well as industrial demand, an industry official said.

"The increasing demand in industrial use and retail demand is expected to lift silver prices in the forward market to Rs 27,000 a kg by December 2009 from the present Rs 23,500 a kg," Silver Emporium's Director and a bulk dealer in silver, Rahul Mehta, s aid here.

Silver is traded in the Indian commodity exchanges like Multi Commodity Exchange of India (MCX) and National Commodity & Derivatives Exchange Ltd (NCDEX). The silver price in the ready market is set to touch Rs 25,000 a kg by December from the present Rs 23,100 a kg, Mehta said.

The price of white metal had gone up more than three times to Rs 27,500 a kg last year from Rs 8,000 a kg in 2003. India is the world's second largest consumer of silver. The retail demand is expected to increase during the forthcoming festival season wh ich is expected to last till February 2010, he said.

Silver is highly ductile and malleable and is used in making jewellery, coins and tableware. It is also used in chemical experiments as it provides a high electrical and thermal conductivity. - PTI