Increase in silver imports in January | Ahmedabad News


Ahmedabad: Anticipating higher returns on silver, investors increasingly turned to buying silver in January. As silver prices fell to a low of 61,000 rupees per kg, the precious metal again caught the attention of investors. In January 2022, 141 MT of silver was imported into Gujarat, according to data from Ahmedabad Air Cargo Complex (AACC), six times more than 20 MT in December 2021.
Increased purchases for industrial use, in addition to purchases by jewelers and bullion dealers, have boosted demand, analysts suggest. The silver price stood at Rs 62,500 per kg on Thursday.
“Investors are expecting silver prices to reach Rs 70,000 per kg in the coming days and therefore as prices dip, silver investments are increasing. Investors expect better returns in the coming days as prices firm up,” said Haresh Acharya, Director of the India Bullion and Jewelers’ Association (IBJA).
“In addition, silver is widely used for industrial purposes to make electronic circuits and other components. With falling prices, industrial purchases tend to increase,” Acharya added.
An estimated 25% of silver consumption is for industrial purposes, industry stakeholders suggest. Analysts also said that many companies have launched silver exchange-traded funds, which are also growing in popularity. Jewelers and bullion dealers also attribute the rise in silver imports to pent-up demand for jewelry and artifacts.
“For young people, silver is increasingly becoming the preferred choice for jewelry as it is light on the pocket and a variety of designs and options are now available. The trend has especially accelerated during the last year and we also have more and more orders for silver jewelry. Pent-up demand is also fueling strong demand for silver among consumers,” said Jigar Soni, Chairman of the Jewelers Association of Ahmedabad (JAA “After the Kamurta period lifted, the demand increased significantly,” Soni added.
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