India is a big gold buyer; in fact the second largest global consumer of gold. But, when we speak of silver, India comes at the top of the list with being the largest consumer, using one in every six ounces of silver in the world. India, thus, represents a large proportion of global silver demand, may it be for jewellery, religious items, investment, or any other silver articles in Bangalore. And, this year, India’s import of silver has seen to take an even bigger leap, so big that it definitely needs to be spoken about.
The spike in silver demands was seen beginning from June this year, resulting in a whopping 72% high compared to last year! In fact, the silver imports to India from the month of June to August this year were almost double as compared to that in 2018. It seems like the tiny silver market is all set to boost up, making a sizeable impact. It looks as if even a little more spike in silver’s demand from India will mean that the material would be taken away from the rest of the global marketplace.
History of India’s shift from silver to gold
Today, just like India is known to be a popular gold buyer, in the early 1900s, India was known to be the world’s No.1 buyer of silver. In fact, Indians bought so much silver that the government then ran into fiscal problems! Slowly, Indians starting shifting from silver to gold. This was because the government, taking into consideration the high demand for silver, doubled the import tariffs for silver in 1910, from 5% to 11%, in order to control their finances. This resulted in a decrease in silver import, which by 1912 reduced to only 70% of what was imported earlier. Now, silver imports were slowly being replaced by gold imports; and slowly India came to be known as the largest gold consumer, a title that was held for almost 100 years! But now, India has started to become, once again, the largest consumer of silver over the last few years.
Future of India’s silver demand
If Indians today shift only 10% of the cash from what they would normally invest in gold, to buy silver, it could result in an incredible 168% jump in silver demand. This would then require 153 million ounces of silver supply to meet this demand! But, where would we get so much of silver from? It’s almost impossible! No kind of mining or scrap could help us reach that amount. Thus, only a 10% shift could result in high pricing for silver again. So, we could be on the verge of a historic run in the price of silver in the very near future. Make sure you own enough silver to take advantage of this big opportunity. Stock up on silver articles in Bangalore, and make sure you do so from a reputed supplier like Aura Jewels, so that you know you are getting genuine silver, which you could gain great benefits from in the future, when the silver prices soar high!