New Delhi, Oct 10 (NationPress) A recent report suggests that the cost of silver could rise to $60 per ounce within the next year, marking a significant 20 percent increase from current prices. This anticipated surge is attributed to a 20 percent supply-demand deficit and growing industrial demand, according to insights from Emkay Wealth Management.

The report indicates that potential rate cuts in the US may cause a slight drop in the dollar's value, thereby bolstering price growth for gold as well.

Gold has notably outperformed various other assets year-to-date, delivering a 61.82 percent return as of October 8. In contrast, Indian equities (Nifty 500 TRI) and bonds (Crisil Short Term Bond Index) reported gains of only 4.2 percent and 8.4 percent, respectively.

Ashish Ranawade, Head of Products at Emkay Wealth Management, emphasized that the increasing preference from institutional investors and central banks for gold over the dollar is a crucial factor behind the strength of precious metals.

"The dynamics of demand and supply are favorable for an increase in silver prices, and we are technically positioned near a breakout zone for all-time highs," stated Ranawade.

Furthermore, the advisory firm noted that Indian equity markets appear expensive compared to growth prospects, with the PE ratio of Nifty 100 at 21.8 times, Nifty Midcap 150 at 33.6, Nifty Smallcap 250 at 30.43, and Nifty Microcap 250 at 28.88.

"Structurally, India is set to stand out in the global economic landscape. A surge of IPOs has expanded market opportunities beyond what indices reflect. Stock-specific opportunities remain abundant for Indian investors. We anticipate that PMS, AIF, and active fund managers will perform well," remarked Dr. Joseph Thomas, Head of Research at Emkay Wealth Management.

A favorable monsoon and enhanced water reserves also indicate a promising second half for the financial year, especially during the festive and busy season, as noted by the firm.