Silver hits new record

Silver has hit new records in the domestic market today as it was traded at Rs 573.50 per tola (11.664 gram).

"Recent increase in customs duty -- to Rs 16 per 10 gram from Rs 3 -- coupled by the hike in the international price has propelled the price of silver in the domestic market," said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers Asociation (NEGOSIDA).

Due to the increase in price, the trade has come down. "The daily demand of silver is over 30 kg per day," he said adding that the price hike has brough it down to around 25 kg.

The increase in price will not only hurt the trading but also the silver jewellery export. "The exports will also be hit, due to price hike," Shakya added.

In the international market silver was traded for $19.20 per ounce.

Historically, silver has always produced a greater per cent increase in bull markets, sometimes increasing two to three times the initial price.

Silver prices hit a low of $8.79 just 14 months before jump-starting in 2010, closing the first week at $18.45. That's a 9.7 per cent climb just in the first week, and 110 per cent in 14 months. In the long-term, silver investments have yielded a 9.1 per cent annual appreciation since 1991, and a 123 per cent gain in the last five years. And silver prices are only going to rise.

Similarly, gold has also hit the new record high of $1257 per ounce in the international market, though the domestic market did not feel the heat due to stronger Indian rupee against the dollar.

Today in the domestic market the precious yellow metal was traded at Rs 31,000 per 10 gram.

On June 2 gold -- following on the upward path had hit another record high of Rs 30,910 per 10 gram (Rs 36,050 per tola).