India’s silver is losing its price as the foreign buyers from the Middle East and the U.S. are not eager to invest. Analysts stated that the prices of silver have affected the overall demand in the global market. Moreover, there are fat chances that the price will not increase, but in the long run, the prices will be appreciated as the metal is strong.
The silver exporters are looking for the emerging markets as the Commonwealth of Independent States (CIS) countries to market silver jewelry. Exports of silver jewelry for the month April-June 2018 are pegged at about $120 million, decreasing by 39 percent from $1,722 million in the corresponding time of last fiscal. Moreover, the silver prices are slipped from Rs. 38,925 to Rs. 37,780 per kg in the last six months. It is said that the metal is undervalued but it may not fall below Rs. 37,000 mark.
Demand For Silver Is Not Picking Up
The major reason behind the downfall of silver prices is the decrease in demand in international as well as domestic market. The Economic Times reported that usually, the country imports around 7,500 tonnes of silver. Every quarter, the import of silver is around 1,800 tonnes. However, in the last few months, the international demand has decreased significantly, resulting in the downfall of the metal prices. In April-June the demand for silver is decreased by 35 to 40 percent. Silver, as well as gold, are suffering the downfall owing to the market uncertainty. However, there is a slight hope for silver. If the Indian monsoon performs well this year, the rural demand for silver may increase and the market will witness growth in demand and thus prices. If the silver demand increases During Diwali and Dussehra festivals, the prices may recover after all.