Silver prices surged to a 22-year high in global markets on Wednesday on speculative buying after US regulators took a big step towards finally approving the markets first exchange-traded fund (ETF), sources said. Domestic market following the suit, recorded new highs where Delhi is showing the most across the board. Agencies say, " if you get 50m ounces of silver for the ETF, it will have a big impact on the market".
Silver used in jewellery, electronics and photography, has gained nearly 20% since the start of 06 in anticipation of the fund launch. The Securities and Exchange Commission on Tuesday approved rule changes that would allow the American Stock Exchange to list shares in Barclays iShares Silver Trust, which is designed to track the price of the metal.
In London, spot silver touched $ 10.59 an ounce, its highest since September 1983, and was at $ 10.56/10.59, against $ 10.53/ 10.56 in New York on Tuesday. Close home, in New Delhi, ready silver (.999) shot up by Rs 300 at Rs 15,200 per kg as speculators turned active buyers after a overnight rally in New York prices. In Kolkata, the white metal soared by Rs 250 to settle at Rs 14,720. In Mumbai, spot silver opened higher at Rs 14,720 but later trimmed some early gains due to some resistance at higher level. In New York, the most active May contract Silver rallied to $ 10.58 an ounce on Tuesday, the highest level since April 1987 when the white metal touched $ 11.25 an ounce on heavy demand, sources said.