You are here: Home » Markets » Commodities » Precious Metals
Business Standard

Silver marks record imports in 2014

Lower investment requirement, thanks to falling prices, and shifting trend towards jewellery

Rajesh Bhayani  |  Mumbai 

usually keeps its sheen even when prices drop. However, in the past two years, prices have fallen sharply compared with the yellow metal. Traders have used this as an opportunity to stock up In 2014, reached a record high of 6,842 tonnes, an 18 per cent increase over the previous year, according to data. In value, however, the import bill fell, owing to the decline in prices. in 2014 were worth $3.46 billion compared with $3.64 billion in the previous year. prices fell 24 per cent in 2013 and another 15 per cent in 2014 in Mumbai. India’s import bill in the past two years was $30-35 billion, with net registering 750-800 tonnes. trade was under stringent controls in 2013 and 2014, prompting several traders to move to The commodity’s lower price, which almost halved from the all-time high price seen four years ago, has generated huge investment interest. The increasing demand for jewellery and articles was also a factor that led to increase in “The surge of this magnitude in volume terms was attributed to higher investment demand and to risk-free returns in the cash-futures arbitrage. jewellery and article fabricators re-stocked in high volumes as the price had declined sharply,” said Sudheesh Nambiath, senior analyst, GFMS Thomson Reuters, a analytical company. The trade, too, has changed, with — especially those by sea — now concentrated in Ahmedabad. Sixty per cent of happen via the sea route and40 per cent by air. In 2014, half the import by sea landed in Ahmedabad.

Sources say the ease of operating through the port there has attracted imported cargoes getting cleared from there. Mumbai’s demand is also met through the Ahmedabad. Other major centres that have seen higher activities in trading are Salem and Chennai in south India and Agra in north India. According to GFMS data, Germany has emerged a major exporter of to India. China, Hong Kong and Taiwan, the UK, Germany and Russia are the largest exporters of to India. Monal Thakkar, director of Ahmedabad-based Amrapali Group, said: “Half of the incremental demand for is investment-driven. Silverware and gifting of articles have also become trendy.”

First Published: Tue, March 10 2015. 22:36 IST
RECOMMENDED FOR YOU