Silver demand for investment falls over 80% in 2012

Fall has a direct reflection on imports also

While might be losing shine due to falling prices, silver had dimmed last year itself. Demand and into India fell 80 per cent in 2012. The fall in demand has a direct reflection on import, though India produces sizable silver, unlike gold where the country is totally import-dependent.

The fall in demand for silver is attributed to a fall in investment. In 2012, India's for investment was just 300 tonnes, against 1,549 tonnes in 2011, according to Thomson Reuters GFMS, which compiles the data. India's total demand for silver was 3,234 tonnes in 2012 against 4,437 tonnes in 2011. The import was 1,900 tonnes, against 4,087 tonnes in 2012. Silver prices peaked in April 2011, at a global $48.4 an ounce. It has been falling since then.

Sudheesh Nambiath, India analyst for GFMS, said: "There was a decent investment interest for silver bars in India through 2011 but a similar trend failed to follow through in 2012. Customs duty at six per cent and lack of price direction kept investors away. The 12 per cent rally in September after months of lacklustre returns was an opportunity for many to take away profits and even offload their stocks. "The trend is unlikely to be reversed soon, as prices might fall further. Last month, the bottom was $22.48 an ounce. Sudheesh of GFMS said, "While $22 is (a) strong support (level), there is always the risk of shortlived downward spikes if we get another tremor in the financial markets." In the medium term, he says, "there is high probability that the price will test $30".

India has been producing silver as a byproduct of refining zinc and copper. In recent years, Hindustan Zinc Ltd (HZL) has emerged as the largest silver refiner. In 2012-13, it produced 408 tonnes and taking into account production by other metal refiners, total production is estimated at a little over 500 tonnes. HZL's sizable production has helped India improve its rank in the global map. In 2011, India was 17th among global silver producers, with 7.5 million ounces. It was 13th in 2012, with production of 12.7 million ounces, according to Thomson Reuters GFMS.

Akhilesh Joshi, chief executive officer of HZL, said: "We are aiming to produce 500 tonnes by 2014. Our total reserve and resource as on March 31 was 348 million tonnes, containing 910 million ounces of silver (28,300 tonnes) and our mine life continues to remain over 25 years."

image
Business Standard
177 22
Business Standard

Silver demand for investment falls over 80% in 2012

Fall has a direct reflection on imports also

Rajesh Bhayani  |  Mumbai 



While might be losing shine due to falling prices, silver had dimmed last year itself. Demand and into India fell 80 per cent in 2012. The fall in demand has a direct reflection on import, though India produces sizable silver, unlike gold where the country is totally import-dependent.

The fall in demand for silver is attributed to a fall in investment. In 2012, India's for investment was just 300 tonnes, against 1,549 tonnes in 2011, according to Thomson Reuters GFMS, which compiles the data. India's total demand for silver was 3,234 tonnes in 2012 against 4,437 tonnes in 2011. The import was 1,900 tonnes, against 4,087 tonnes in 2012. Silver prices peaked in April 2011, at a global $48.4 an ounce. It has been falling since then.



Sudheesh Nambiath, India analyst for GFMS, said: "There was a decent investment interest for silver bars in India through 2011 but a similar trend failed to follow through in 2012. Customs duty at six per cent and lack of price direction kept investors away. The 12 per cent rally in September after months of lacklustre returns was an opportunity for many to take away profits and even offload their stocks. "The trend is unlikely to be reversed soon, as prices might fall further. Last month, the bottom was $22.48 an ounce. Sudheesh of GFMS said, "While $22 is (a) strong support (level), there is always the risk of shortlived downward spikes if we get another tremor in the financial markets." In the medium term, he says, "there is high probability that the price will test $30".

India has been producing silver as a byproduct of refining zinc and copper. In recent years, Hindustan Zinc Ltd (HZL) has emerged as the largest silver refiner. In 2012-13, it produced 408 tonnes and taking into account production by other metal refiners, total production is estimated at a little over 500 tonnes. HZL's sizable production has helped India improve its rank in the global map. In 2011, India was 17th among global silver producers, with 7.5 million ounces. It was 13th in 2012, with production of 12.7 million ounces, according to Thomson Reuters GFMS.

Akhilesh Joshi, chief executive officer of HZL, said: "We are aiming to produce 500 tonnes by 2014. Our total reserve and resource as on March 31 was 348 million tonnes, containing 910 million ounces of silver (28,300 tonnes) and our mine life continues to remain over 25 years."

RECOMMENDED FOR YOU

Silver demand for investment falls over 80% in 2012

Fall has a direct reflection on imports also

Fall has a direct reflection on imports also While might be losing shine due to falling prices, silver had dimmed last year itself. Demand and into India fell 80 per cent in 2012. The fall in demand has a direct reflection on import, though India produces sizable silver, unlike gold where the country is totally import-dependent.

The fall in demand for silver is attributed to a fall in investment. In 2012, India's for investment was just 300 tonnes, against 1,549 tonnes in 2011, according to Thomson Reuters GFMS, which compiles the data. India's total demand for silver was 3,234 tonnes in 2012 against 4,437 tonnes in 2011. The import was 1,900 tonnes, against 4,087 tonnes in 2012. Silver prices peaked in April 2011, at a global $48.4 an ounce. It has been falling since then.

Sudheesh Nambiath, India analyst for GFMS, said: "There was a decent investment interest for silver bars in India through 2011 but a similar trend failed to follow through in 2012. Customs duty at six per cent and lack of price direction kept investors away. The 12 per cent rally in September after months of lacklustre returns was an opportunity for many to take away profits and even offload their stocks. "The trend is unlikely to be reversed soon, as prices might fall further. Last month, the bottom was $22.48 an ounce. Sudheesh of GFMS said, "While $22 is (a) strong support (level), there is always the risk of shortlived downward spikes if we get another tremor in the financial markets." In the medium term, he says, "there is high probability that the price will test $30".

India has been producing silver as a byproduct of refining zinc and copper. In recent years, Hindustan Zinc Ltd (HZL) has emerged as the largest silver refiner. In 2012-13, it produced 408 tonnes and taking into account production by other metal refiners, total production is estimated at a little over 500 tonnes. HZL's sizable production has helped India improve its rank in the global map. In 2011, India was 17th among global silver producers, with 7.5 million ounces. It was 13th in 2012, with production of 12.7 million ounces, according to Thomson Reuters GFMS.

Akhilesh Joshi, chief executive officer of HZL, said: "We are aiming to produce 500 tonnes by 2014. Our total reserve and resource as on March 31 was 348 million tonnes, containing 910 million ounces of silver (28,300 tonnes) and our mine life continues to remain over 25 years."
image
Business Standard
177 22

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

More News

  • Stocks see second weekly fall as Fed rate hikes odds rise
  • Raghuram Rajan, RBI RBI wants to liberalise while strengthening bond markets: Rajan

STOCK WATCH

Company Price() Chg(%)
Trident 56.00 12.45
VST Inds. 2296.20 10.12
GRUH Finance 345.20 9.33
J B Chem & Pharm 336.60 7.90
Century Textiles 709.85 5.92
> More on BSE Gainers
Company Price() Chg(%)
Trident 56.45 13.13
Future Lifestyle 137.65 10.92
GRUH Finance 346.05 9.46
VST Inds. 2284.90 9.22
J B Chem & Pharm 336.50 7.71
> More on NSE Gainers
Company Price() Chg(%)
Welspun India 49.70 -8.64
Shilpa Medicare 553.00 -7.82
Piramal Enterp. 1851.10 -5.41
Jaypee Infratec. 9.21 -4.76
Avanti Feeds 534.10 -4.20
> More on BSE Gainers
Company Price() Chg(%)
Welspun India 49.40 -8.60
Shilpa Medicare 551.70 -7.87
IDBI Bank 70.45 -6.38
Jaypee Infratec. 9.10 -5.70
Piramal Enterp. 1847.10 -5.48
> 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