As investors seek silver lining, metal's import up 311%

While the government has put a series of restrictions to curb imports, it is that is ruling the roost. During the April-June quarter, import of rose 311 per cent to $1.78 billion, compared with $433.8 million in the corresponding period of last year due to a surge in demand.

According to traders and economists, restrictions on have drifted the general sentiment towards as they feel it is the closest substitute for gold. "Ever since the government has started putting measures to curb imports, demand for has seen a sudden surge. Moreover, there is a general scare in the market that the government might soon start curbing imports also, as a result, traders are stocking up silver," said Monal Thakkar, president of Amrapali Industries, a leading Ahmedabad-based stock and commodity broking house.

Thakkar added such a staggering rise in import could also be attributed to a substantial rise in demand for jewellery as well crockery. "People are buying as a viable investment option," he added.

According to Sudheesh Nambiath, analyst at Thomson Reuters GFMS, India's total imports have more than doubled from last year, crossing 4,000 tonnes in the first eight months of 2013 compared to 1,900 tonnes in the whole of 2012. "Because of the restrictions on gold, traders shifted towards silver," Nambiath said.

He added that even by mid of the year manufacturers already had full order books through to December, a clear indication of stocking and also higher demand expectation from fabricators. Indian imports had increased at a fast pace taking advantage of lower prices, however imports dropped to just over 300 tonnes in August. It suggests that investors and bullion traders were refraining from further imports after price crossed Rs 55,000 a kg. Also delivery of near 75 tonnes to the together in the July and Sept contract, only reaffirms the strong participation from investors and traders this year.

This level of delivery on futures exchange is considered very good.

Anis Chakravarty, senior director, Deloitte India said import was basically offsetting the demand for as it was a safer option.

An industry veteran who is active in exports, however, said with RBI's restrictions on imports, round tripping of has come to a halt and some players, mainly export houses, who were active in round-tripping, seem to have shifted to silver.

Round-tripping means re-exporting without much value addition and export houses do so to maintain higher export volumes which allow them to retain status of a star trading house.

image
Business Standard
177 22
Business Standard

As investors seek silver lining, metal's import up 311%

Nayanima Basu & Rajesh Bhayani  |  New Delhi 



While the government has put a series of restrictions to curb imports, it is that is ruling the roost. During the April-June quarter, import of rose 311 per cent to $1.78 billion, compared with $433.8 million in the corresponding period of last year due to a surge in demand.

According to traders and economists, restrictions on have drifted the general sentiment towards as they feel it is the closest substitute for gold. "Ever since the government has started putting measures to curb imports, demand for has seen a sudden surge. Moreover, there is a general scare in the market that the government might soon start curbing imports also, as a result, traders are stocking up silver," said Monal Thakkar, president of Amrapali Industries, a leading Ahmedabad-based stock and commodity broking house.



Thakkar added such a staggering rise in import could also be attributed to a substantial rise in demand for jewellery as well crockery. "People are buying as a viable investment option," he added.

According to Sudheesh Nambiath, analyst at Thomson Reuters GFMS, India's total imports have more than doubled from last year, crossing 4,000 tonnes in the first eight months of 2013 compared to 1,900 tonnes in the whole of 2012. "Because of the restrictions on gold, traders shifted towards silver," Nambiath said.

He added that even by mid of the year manufacturers already had full order books through to December, a clear indication of stocking and also higher demand expectation from fabricators. Indian imports had increased at a fast pace taking advantage of lower prices, however imports dropped to just over 300 tonnes in August. It suggests that investors and bullion traders were refraining from further imports after price crossed Rs 55,000 a kg. Also delivery of near 75 tonnes to the together in the July and Sept contract, only reaffirms the strong participation from investors and traders this year.

This level of delivery on futures exchange is considered very good.

Anis Chakravarty, senior director, Deloitte India said import was basically offsetting the demand for as it was a safer option.

An industry veteran who is active in exports, however, said with RBI's restrictions on imports, round tripping of has come to a halt and some players, mainly export houses, who were active in round-tripping, seem to have shifted to silver.

Round-tripping means re-exporting without much value addition and export houses do so to maintain higher export volumes which allow them to retain status of a star trading house.

RECOMMENDED FOR YOU

As investors seek silver lining, metal's import up 311%

While the government has put a series of restrictions to curb gold imports, it is silver that is ruling the roost. During the April-June quarter, import of silver rose 311 per cent to $1.78 billion, compared with $433.8 million in the corresponding period of last year due to a surge in demand.According to traders and economists, restrictions on gold have drifted the general sentiment towards silver as they feel it is the closest substitute for gold. "Ever since the government has started putting measures to curb gold imports, demand for silver has seen a sudden surge. Moreover, there is a general scare in the market that the government might soon start curbing silver imports also, as a result, traders are stocking up silver," said Monal Thakkar, president of Amrapali Industries, a leading Ahmedabad-based stock and commodity broking house.Thakkar added such a staggering rise in silver import could also be attributed to a substantial rise in demand for silver jewellery as well silver cr While the government has put a series of restrictions to curb imports, it is that is ruling the roost. During the April-June quarter, import of rose 311 per cent to $1.78 billion, compared with $433.8 million in the corresponding period of last year due to a surge in demand.

According to traders and economists, restrictions on have drifted the general sentiment towards as they feel it is the closest substitute for gold. "Ever since the government has started putting measures to curb imports, demand for has seen a sudden surge. Moreover, there is a general scare in the market that the government might soon start curbing imports also, as a result, traders are stocking up silver," said Monal Thakkar, president of Amrapali Industries, a leading Ahmedabad-based stock and commodity broking house.

Thakkar added such a staggering rise in import could also be attributed to a substantial rise in demand for jewellery as well crockery. "People are buying as a viable investment option," he added.

According to Sudheesh Nambiath, analyst at Thomson Reuters GFMS, India's total imports have more than doubled from last year, crossing 4,000 tonnes in the first eight months of 2013 compared to 1,900 tonnes in the whole of 2012. "Because of the restrictions on gold, traders shifted towards silver," Nambiath said.

He added that even by mid of the year manufacturers already had full order books through to December, a clear indication of stocking and also higher demand expectation from fabricators. Indian imports had increased at a fast pace taking advantage of lower prices, however imports dropped to just over 300 tonnes in August. It suggests that investors and bullion traders were refraining from further imports after price crossed Rs 55,000 a kg. Also delivery of near 75 tonnes to the together in the July and Sept contract, only reaffirms the strong participation from investors and traders this year.

This level of delivery on futures exchange is considered very good.

Anis Chakravarty, senior director, Deloitte India said import was basically offsetting the demand for as it was a safer option.

An industry veteran who is active in exports, however, said with RBI's restrictions on imports, round tripping of has come to a halt and some players, mainly export houses, who were active in round-tripping, seem to have shifted to silver.

Round-tripping means re-exporting without much value addition and export houses do so to maintain higher export volumes which allow them to retain status of a star trading house.

image
Business Standard
177 22

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

More News

  • India can achieve 50 mt maize output by 2025 to meet demand Corn prices in India firms up on supply crunch, rise in demand: USGC
  • BSE-listed firms’ market cap hit new high of Rs 111 lakh crore Market cap of BSE-listed firms hit new high of Rs 111 lakh crore

STOCK WATCH

Company Price() Chg(%)
H T Media 88.30 12.41
Dr Lal Pathlabs 1004.05 8.85
G M D C 98.15 8.27
Oriental Bank 124.05 7.82
Yamini Invest 39.70 7.30
> More on BSE Gainers
Company Price() Chg(%)
Oriental Bank 124.00 7.92
G M D C 97.85 7.88
Jubilant Life 543.80 6.81
Radico Khaitan 103.05 6.73
Allahabad Bank 84.00 6.67
> More on NSE Gainers
Company Price() Chg(%)
R C F 47.10 -5.23
Welspun India 46.75 -4.10
Den Networks 80.90 -3.86
Trident 56.00 -3.45
Bharti Airtel 332.10 -2.82
> More on BSE Gainers
Company Price() Chg(%)
R C F 47.15 -5.23
Den Networks 80.90 -3.75
Welspun India 46.65 -3.72
Trident 55.90 -3.70
Whirlpool India 924.95 -3.16
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard