India July Silver Imports Highest in 5 years

August 2, 2013 at 19:54

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Silver imports in India recorded a staggering 258.65% growth at 857 metric tonnes in the first four months (April-July) of 2013-14 as compared to 239 MT by July 2012.

The imports of 274.922 MT in July are the highest in last five years in the first four months of a financial year. In fact, silver imports in July 2013 are the second highest in any month in the last five years.

On the other hand, gold has seen a steep decline in imports in June (only 8.908 MT) compared to 37.618 MT in May, the second lowest in last five years. Overall, in the first four months, gold imports have grown by 104.27% at 78 MT.

Experts say traders are importing more silver because of trade restrictions on gold by the Government of India since June 3. The decrease in silver prices over the last three months is also driving imports. “Due to restrictions on gold, these figures were expected and traders are waiting for gold prices to fall further before they start buying,” said Kishore Javeri of Javeri and Company.

Some traders also believe that the decrease in imports is also because of the depreciating rupee. “The rupee is touching 60 and there is also market pressure to maintain the balance in imports of gold, hence the decline in gold imports,” said Monal Thakkar, president of Amrapali Industries.

“Silver, unlike gold, is very erratically imported. There have been periods when silver imports have been zero. Gold imports have been consistent until last month,” said Samir Mankad, director of Gujarat State Cargo Exports Ltd . He added, “Silver imports are also high due to physical inventory available to store silver.”