InvestorQ : Is it true that silver is attracting a lot of demand for investors and why is it so?
Anamika Sodhani made post

Is it true that silver is attracting a lot of demand for investors and why is it so?

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Angel dcosta answered.
2 months ago
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For a long time, the big accretion to the trade deficit came from commodities like gold, coal, coke and fertilizers. A new risk could come in the form of silver. That is the latest challenge for India on the trade account. In fact, for the current fiscal year FY23, the silver imports are all set to triple as silver is expected to outperform gold in the coming year. The price of gold and silver is normally determined by the gold/silver ratio and that has been favouring silver for quite some time. This led to a lot of investment demand for silver in India.

India is the world’s biggest consumer of silver and may support global prices due to robust demand for the commodity. It is largely investment demand for silver that has been boosting imports, since silver has investment demand and also industrial use demand. India's silver imports in 2022 are expected to touch a record level of 8,200 tonnes. As silver is not available in India substantially, imports are rising continuously. India’s silver imports in the year 2021 was just 2,773 tonnes. Silver trades at Rs57,900 per KG.

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