Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench

Silver sales set to outshine gold in India

IMG Auteur
Published : December 12th, 2012
599 words - Reading time : 1 - 2 minutes
( 3 votes, 4.7/5 ) , 1 commentary
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
1
comment
Our Newsletter...

 

 

 

 

Investors in India are bullish on silver, saying the white metal is in position for a potentially spectacular move over the next year and more.


Author: Shivom Seth
Posted: Tuesday , 11 Dec 2012
MUMBAI (Mineweb) -

Indian retailers are bullish on silver. With supplies tightening, deliveries are slowing down this week in the bullion market in Mumbai. What has also buoyed sentiment is that silver continues to lead precious metals, and sales have jumped over 24% this year.


Snapping a two day losing trend, both the major precious metals, gold and silver, bounced back in the Mumbai market on buying by retailers at existing low levels. While gold rebounded to $575 (Rs 31,205) per 10 grams (US$1788/oz), silver gained by 1.38% to $1,159.49 (Rs 62,930) per kilo ($36.06/oz).

"Strong support is expected in the Silver March contract around $1,159 (Rs 62,900) ($36.05) from the start of the week," said analysts tracking the white metal. Traders have been taking long position in the Silver March contract above $1,161.49 (Rs 63,050) ($36.13) for target near $1,178.88 (Rs 64,000) ($36.67) for this week, they added.

Silver prices have remained steady at around $32 since mid-May. "Though everybody has been gushing about the returns that gold has given over the past four years, it is the white metal that has streaked ahead," said Manjusha Madani, bullion analyst at an investment house.

She added that silver prices have jumped from $304.39 (Rs 16,525) per kilo ($9.47/oz) in 2008 to $1,381.95 (Rs 75,020) per kilo ($42.98) in 2011, a gain of 354%.
Though prices have dropped per kilo, it does not mean that the potential in silver is exhausted, she added.

An analyst report had also shown how silver had risen about 53% from December 2008 through March 2010, twice as much as gold. Silver is expected to keep beating gold.

"More and more people are realising the value of investing in silver coins and bullion bars in India," added Jayeshbhai Shah, a bullion retailer at Mumbai's Zaveri Bazaar. "The value of silver has increased rather steadily for the last few years. People who have never invested before are now investing in silver, because they know that buying silver is a great way to ensure that their money is there when they need it," he added.

SILVER JEWELLERY

"The white metal is now turning out to be the preferred choice for everyday wear, with exquisite silver jewellery on offer, because gold is too expensive. Besides being trendy and contemporary, the metal readily blends with a variety of clothing and other accessories, thereby offering a suite of options to the wearer," said an official at Dhanabhai Export House.

He added that more and more consumers were looking for traditional or contemporary silver jewellery and were even looking at the white metal for classic business gifts, to be given during the festive season.

"There are customers who comes to us asking us for heritage art, or even our temple jewellery selection, which is only made in silver. We take great pride in preserving our heritage craft and have several jewellery items that are exact replicas of antique temple jewellery," he added.

During 2011-12, silver jewellery exports grew to 44% as compared with gold jewellery exports of 30%. India is the biggest consumer of white metal jewellery, and has also found a new class of buyers in the West.

Ketan Shroff, managing director of Pushpak Bullions said investors and jewellery-lovers prefer silver jewellery these days, as gold prices are going up constantly. Silver prices are expected to rise further, if one takes into account the demand potential.

 

 

Companies Mentionned : Bullion | Heritage | Metals X |
Data and Statistics for these countries : India | All
Gold and Silver Prices for these countries : India | All
<< Previous article
Rate : Average :4.7 (3 votes)
>> Next article
All the stuff you don't want to know about, but should. And, when you do know, you realize that for the present you are powerless to change it This article is brought to you by the Charleston Voice E-mail List. To subscribe FREE to the distribution list, send an e-mail to the author with 'SUBSCRIBE' in the subject line.
Latest comment posted for this article
The connect between an Indian and gold and or silver is basically traditional and customary and therefore more from compulsion than choice. Both metals are expensive to risk buying exclusively for investment given their volatility and uncertainity at any  Read more
Papli - 12/15/2012 at 12:06 AM GMT
Top articles
Latest Comments
The Crash of the Bank of the Uni...
01 Augsam_site
AN ASTOUNDING EXPOSURE What no one recognizes to this day is that the Fed stole America's gold and shipped it to Germany causing b...
Iran Agreement Boosts Peace, Def...
29 JulArtboard
A US Naval vessel shot down an Iranian Passenger Jet with 300 passengers, over the Persian Gulf on the 3rd July 1988, they mistook it for a Fighter...
Will Uncle Sam Confiscate Gold A...
31 Julovertheedge
"... , generally larger amounts would be safer stored in the safest vaults in the world and in the safest jurisdictions in the world." An...
Gold market liquidity and manipu...
29 JulPD
Bron, I was wondering if the planned Allocated Bullion Exchange (ABX) would have any impact on the liquidity of the Gold market. Would it not at le...
Is the gold price manipulated?
29 Juldanzas1231
This article is a joke. Please stop writing baseless garbage. There is enough real evidence of the things you're still calling conspiracy. GATA hav...
Is the gold price manipulated?
28 Julkeith952
... if one takes the dumping of an usually high tonnage of gold at an illiquid time in the gold market aka the Monday one week ago - then such 'b...
Gold Reserves and GDP: China is ...
30 JulWilliam Tan
Shakespeare was right; "The world is a stage." Unfortunately we have all the bad actors acting at once.
Iran Agreement Boosts Peace, Def...
28 Julsonora69
You have a point. The 2003 Iraq invasion is mostly now considered an ill-advised and unjustified destabilization, with regional & political consequ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Vena Res.(Ag-Au-Cu)VEM.TO
Provides Update With Regards to the Arbitration Concerning the Azulcocha West Project and Enf
CA$ 0.04-35.71%Trend Power :
Exploration and drilling
Rockwell(Cu-Gems-Ni)RDI.TO
Announces Delay in Annual Meeting and Meeting Date
CA$ 0.20-2.44%Trend Power :
Corporate news
Eldorado Gold(Au-Fe)ELD.TO
Reports 2015 Second Quarter Financial and Operational Results
CA$ 4.50+11.39%Trend Power :
Financials
Endeavour Financial(Ag-Au-Co)EDV.TO
Mining Q2 2015 AISC/oz of $898, Profit of $33M And $20M Debt Payment in July
CA$ 0.51+8.51%Trend Power :
Corporate news
Mawson Res.(Au-Ur)MAW.TO
Restarts Drilling at the Palokas Gold Prospect in Finland
CA$ 0.17+6.25%Trend Power :
Corporate news
Goldcorp(Cu-Le-Zn)G.TO
Achieves Record Quarterly Gold Production; Updates 2015 Cost Guidance
CA$ 17.45+6.01%Trend Power :
Production
Claude Resources(Au-Cu-Ngas)CRJ.TO
Provides Date for Q2 Results and Conference Call
CA$ 0.65+3.17%Trend Power :
Corporate news
Richmond Min.(Ur-Au-Gems)RMD.V
- Exploration Update
CA$ 0.09+0.00%Trend Power :
Corporate news
Arianne Phosphate(Ur-Mo-Ti)DAN.V
Extends the Term of Warrants
CA$ 0.88+2.33%Trend Power :
Financings
Anaconda Min.(Au)ANX.TO
Reports 12.83 g/t Gold Over 4.38 Metres and 8.55 g/t Gold Over 4.97 Metres from Channel Sampl
CA$ 0.05+25.00%Trend Power :
Corporate news
Comments closed
  All Favorites Best Rated  
The connect between an Indian and gold and or silver is basically traditional and customary and therefore more from compulsion than choice. Both metals are expensive to risk buying exclusively for investment given their volatility and uncertainity at any given time. And only a numbered few can afford taking this risk. The spurt in demand for silver for jewellery is from the affluent who can afford both and those who cannot afford gold. The demand for gold jewellery is also being subdued by availabilty of artificial gold look alike jewellery at a percentage of cost and this also under cuts demand for silver jewellery. Buying gold or silver for investment purposes is a dream with heavy cost and risk overlays that an average Indian can ill afford and, therefore, still avoids the large moves up and those forecasted not with standing.