Silver consumption could jump 80% to record levels.
After two years plagued by COVID, merchants are projected to cut inventory in warehouses from London to Hong Kong, causing India’s silver consumption to increase by roughly 80% and reach a record high this year.
Silver demand in India is up less than 25%.
The amount of silver that India will buy this year may be more than 8,000 tons, up from an estimated 5,900 tons in April.
Pent-up demand is causing a surge in buying among retail clients, similar to what happened with gold last year, according to Chirag the Shet, chief consultant at Metals Focus Ltd.
India obtains the majority of its silver from warehouses recognized by the London Bullion Market Association and imports nearly half of its silver from the UK, Hong Kong, and mainland China.
According to the LBMA, silver stockpiles in London vaults were at their lowest point since records first started being kept in 2016 at 27,101 tons at the end of September.
White metal futures are currently priced at Rs 58,869/kg on local platforms, still well below the record price of Rs 77,949 set in 2020.