Industry officials in India predict a significant uptick in silver imports in the coming months as investment and industrial demand continue to drive prices higher. This surge in imports by the world's largest silver consumer is expected to provide further support to global prices that are already at a 14-year high.
According to Chirag Thakkar, CEO of silver importer Amrapali Group Gujarat, the rising prices have led to a substantial increase in investment demand, almost doubling compared to previous levels. Thakkar made these remarks during the India Gold Conference in New Delhi.
While the industry initially anticipated a decrease in India's silver imports for 2025 following a substantial surge in shipments in the previous year, the actual data for the first eight months of the year tells a different story. Despite imports dropping by more than half during this period, demand has remained robust, depleting existing stocks and prompting banks and dealers to ramp up imports.
Local silver futures hit a record high of Rs 129,878 per kilogram on Tuesday, marking a significant 49% increase since the beginning of the year, outpacing the 44% rise in gold prices. Despite the rally, silver continues to trade at a slight premium due to strong demand from industrial users and investors.
Interestingly, the current bullish sentiment towards silver has resulted in minimal scrap hitting the market, as investors are maintaining their positions instead of cashing out. This trend is further evidenced by the sharp rise in inflows into silver exchange-traded funds, reaching 17.59 billion rupees in July and 19.04 billion rupees in August.
India predominantly imports silver from countries such as the United Arab Emirates, Britain, and China. The positive outlook for silver imports in the country is expected to shape global prices in the months ahead, driven by a confluence of investment and industrial demand factors.
