Friday, January 14, 2011

India silver imports soar on rising gold price

MUMBAI (Commodity Online): The historic high price of gold is driving investors in India to take solace in silver. Demand for silver is surging in the country as investors, traders and families are shifting to the white metal thanks to the soaring prices of gold.
“Demand for silver products like silver coins, jewellery etc has soared in India as many people in rural areas cannot afford to think of buying gold at these high prices,” Suresh Vaid, a bullion dealer in Mumbai said.
India is the largest consumer and importer of silver in the world. According to commodities brokerage Karvy Comtrade silver imports by India soared more than six times to $1.7 billion in the first-half of 2010.
Vaid says rising gold price is certainly one reason why silver imports are going up in India. “People in rural India are these days buying more silver than gold because they can not simply afford to buy gold,” he said.
India is the largest importer of the silver in the world and the country consumes more than 4000 tons of silver annually with the bulk of sale being made in rural areas. India has emerged as the third largest industrial user of silver in the world after US and Japan. Article published here

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