Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

India’s Appetite for Silver

  by    0   0

Indians love gold. Despite rising prices, a tax increase, and government attempts to tighten regulation of the jewelry industry, gold imports into the country nearly tripled year-on-year in August. India ranks as the second largest gold consuming country in the world, trailing only China. But gold isn’t the only precious metal Indians covet. They also buy a lot of silver.

According to a new report by the Silver Institute, India consumed 160.6 million ounces of silver in 2016, accounting for 16% of global silver demand.

More than half of the silver flowing into India is used in jewelry and silverware.

These are traditional markets, though the demand drivers and consumer profile vary considerably between both segments. Typically, silver jewelry is purchased by most income groups in India, whereas silverware is bought by the middle and affluent classes. Since the start of this decade, there has been a large expansion of demand in both markets, from around 39 Moz in 2010 to 88 Moz in 2016. Of note, the Indian silverware market is the largest in the world and its importance is growing, representing 70 percent of the total global demand.”

Investment demand for silver has also picked up in the last decade. The Silver Institute called the increase in demand between 2010 and 2015 “unprecedented.” Physical investment surged from 25.7 million ounces in 2010 to a record high of 110 million ounces in 2015. Demand fell off in 2016 due to higher prices and government attempts to clamp down on “unaccounted” money.

India’s cultural affinity for silver underscores the country’s importance as a leading source of demand in the global silver marketplace.  The breadth of the Indian silver market resonates across much of the country, currently the world’s seventh largest economy.”

India imports most of its silver, but it does produce some of its own. Indian mines produced 14 million ounces of silver in 2016, making the country the 14th largest silver producer globally.

The Silver Institute says its report “underscores India’s prominence in the international silver market. The country’s importance is poised to evolve even further as its economy grows and incomes rise.” More generally, it underscores the value Indians place on precious metals. They recognize their historic wealth-preserving qualities. Gold and silver offer Indians financial stability, especially in rural areas where much of the economy operates underground. Buying gold and silver is interwoven into Indian culture, but the practical reasons to acquire precious metals transcend culture and national borders.

You can download the full Silver Institute report on silver in India here.

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Central Banks Add Nearly 23 Tons of Gold to Reserves

After two months of net global declines in gold holdings, central banks became net buyers again in October. Gold-buying by central banks has slowed from the record pace we saw in 2018 and 2019, but many countries continue to load up on the yellow metal. In October, central banks added a net 22.8 tons of […]

READ MORE →

Money Supply (Inflation) Continues to Grow at Torrid Pace

The money supply continues to grow at a torrid rate. Based on the “true” or Rothbard-Salerno money supply measure (TMS), the money supply grew by 37.08% year-on-year in October. That was down just slightly from September’s record rate of 37.54%.

READ MORE →

Fed Would Need to Double Quantitative Easing to Keep Pace With US Debt

The US government is increasingly relying on the Federal Reserve to prop up the Treasury market and absorb the trillions of dollars in bonds it’s issuing in order to fund its massive budget deficits. The Fed now holds a record 16.5% of US debt. And it’s going to have to buy trillions of dollars of […]

READ MORE →

17 Million Americans Behind on Mortgage or Rent Payments

Even as market mania continues over hopes for a coronavirus vaccine, the economic devastation caused by the government response to the pandemic continues to ravage the economy.  Seventeen million households are behind on rent or mortgage payments, and nearly 6 million Americans say they are at risk of eviction in the next few months.

READ MORE →

Foreign Share of US Debt Plunging; Fed Picking Up the Slack

Over the last year, the US government had borrowed over $4.2 trillion. The national debt now stands well above $27 trillion. There is no end in sight to the borrowing and spending and that raises a significant question: who is going to buy all of the bonds necessary to finance the government spending machine? Not […]

READ MORE →

Comments are closed.

Call Now