India’s silver imports glittering like gold, shoot up by 311% in Q1 FY14


September 27, 2013

Bars of 1000 gram silver are seen in this picture illustration at a precious metal refinery in Istanbul The silver demand in India has surged substantially, figures indicate. According to latest import data released by India Customs, the total imports of silver by the country during the first quarter of the current financial year amounted to $1.78 billion, 311% higher than the imports of $433.8 million during the corresponding quarter last year.

What made silver imports zoom

Trade experts believe that the sudden surge in silver imports is partly attributed to the tight restrictions imposed by the Indian government on gold imports. Gold restrictions have drifted the general sentiment towards silver. In addition, considerable rise in demand for silver jewelry and silver crockery has contributed to the astounding growth in silver imports by the country. Also, silver’s demand as an investment option has witnessed significant boost during recent months.

Year-to-date silver import facts

The country’s year-to-date silver imports have already crossed 4,000 tonnes, which is more than double of the total imports of 1,900.39 tonnes in the whole of 2012. The imports during the first eight months of the year have almost equaled the total imports in the whole of 2011. If the silver import trend continues to remain buoyant through rest of the year, 2013 would see highest silver imports in the past five years. The country had imported 5,048.02 tonnes of silver in 2008.

Expectations for rest of the year

Going forward, analysts foresee increased demand for the white metal from fabrication industry. Also there are strong apprehensions that after gold, the Indian government may now turn against silver- the closest substitute for gold. Stricter measures to curb silver imports are certainly in the offing.


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