INDIA’S SILVER IMPORTS SET TO TRIPLE IN 2022

MUMBAI: India’s silver imports are set to triple in 2022 from a year ago to record highs after a dip in prices to 2-year lows spurred investors to bet that the metal was primed for a rebound and could outperform gold in the coming years.

Higher demand in India, the world’s biggest silver consumer, could support global prices.

“Investment demand has been boosting imports,” said Chirag Thakkar, chief executive officer of Amrapali Group Gujarat, a leading silver importer. “Investors are anticipating poor man’s gold will beat gold in coming years,” Thakkar said. India’s silver imports in 2022 could jump to a record 8,200 tonnes, he said.

In the first seven months of 2022, silver imports surged to 5,100 tonnes from just 110 tonnes during the same period a year ago, according to provisional data from the ministry of commerce and industry.

In 2020 and 2021 Indian investors and industry sold silver stocks after strong imports in 2018 and 2019, Thakkar said.

“Destocking depleted available stocks in the country. At current prices, traders are investing. As silver is not available in the country, imports are rising,” he said.

India’s silver imports in 2020 and 2021 were 2,218 tonnes and 2,773 tonnes respectively, down from 5,969 tonnes in 2019.

Local silver futures were trading around ₹57,900 per kilogram on Wednesday afternoon after hitting a record high of ₹77,949 in 2020.

Investors such as Umesh Patel, who bought two bars of silver this month, think prices have corrected too much and will rebound soon.

“Silver is underperforming compared to gold. I’m hoping it will rise sharply like 2009 to 2011 period,” said Patel, who had received more than 200% returns from silver during the period.

Imports have also climbed on growing industrial use, said a Mumbai-based dealer.