Investors attracted to more affordable silver than expensive gold, takes its price to record high at Rs 3,905 per tola

KATHMANDU, Dec 13: Investors are attracted more to invest in silver as gold becomes unaffordable to many.

The records with Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA) show that the price of silver increased by Rs 900 per tola (11.6638 grams) last month. On November 9, the price stood at Rs 3,015 which rose to Rs 3,905 per tola on Friday, more than 30 percent growth over the period.

According to bullion traders, the demand pressure on silver is escalating both in domestic and foreign markets, which has exerted pressure on its price to go up. Manik Ratna Shakya, former president of the FENEGOSIDA, said the higher price of gold limits investment opportunities for small and ordinary investors. “As the metal is now being more affordable, silver allows small investors also to participate in injection of their capital more easily in the segment,” Shakya said.

The international market’s growing use of silver in electronics and industrial products, coupled with low production and rising demand, have been identified as among the causes behind soaring price of silver, which is seen as next best alternative for gold for investment.The global demand is reported to have soared mainly with increasing demand for solar energy, electric vehicles, and electronics.

Reuters, an international media, has stated that silver prices are up nearly 5 percent last week, while it has gained 112 percent this year. “The escalated prices were spurred by tightening inventories, sustained industrial demand and its inclusion on the US critical minerals list.”

In Nepal’s market, silver gained Rs 300 per tola, with the price increasing from Rs 3,555 to Rs 3,905 last week. The largest increase was observed on Wednesday, when silver price increased by Rs 150 per tola on a single day.

Meanwhile, the price of gold also increased Rs 4,200 last week, escalating from Rs 252,400 to Rs 256,600 per tola. The largest single day gain in gold price was seen on Friday, when the market value of gold increased by Rs 3,500 per tola.

The FENEGOSIDA said gold price was affected by the increased attraction of investors with arriving New Year 2026 and the Federal Reserve cutting down the interest rates. “Similarly, the continuation in policies by a number of countries to increase reserves of gold and silver amid persisting geopolitical tensions have led to the surged demand for the precious metals,” reads the FENEGOSIDA issued weekly report.