Silver demand soars as price down 19% in 2015

KOLKATA: Silver imports are likely to be around 7,500 tonne in 2015, 10% more than what they were 2014, as consumers are shifting from imitation jewellery to silver. Rural demand for the metal has increased as affordability of gold has reduced due to a drop in farm earnings.

Prices of silver — dubbed the poor man’s gold — have fallen by almost 18.5% in the past year, boosting its consumption.

Demand for silver jewellery has also increased in metros as branded players such as PN Gadgil, Senco and others have entered the market with designer silver jewellery, offering more choices.

Silver will get a further boost when the World Silver Council, launched by the Indian Bullion & Jewellers Association ( IBJA) along the lines of World Gold Council, starts functioning.

“People have invested in silver as there’s a feeling that when gold prices fall, silver does better. Silver price is now hovering around Rs 35,500 per kg which is attractive for acquisition. Although final import figures are yet to come, it will definitely be higher than 2014 going by market feedback,” Ketan Shroff, spokesperson, IBJA, told ET.

“Unlike in the past, consumers see a resale value for silver, whether jewellery, artefacts and investment products such as coins and bars,” said a bullion dealer.