Silver consumption rises three-fold

Areport by the Silver Institute has stated that consumption of the white metal in the country tripled in the last decade.

According to the World Silver Survey 2018, 610 tonne of silver was used for making jewellery in the year 2018 and the figure went up steeply to 2,058 tonne in 2017.

Similarly for silverware, usage went up from 481 tonne in 2008 to 1,212 tonne in 2017.

As a result, India’s share of silver consumption for jewellery and silverware in world market also surged from 14.7 per cent in 2008 to 39.2 per cent in 2017. In the last decade, India imported nearly 45,000 tonne of silver. However, in the case of gold, the trend was just the opposite as demand had fallen in both the categories. The demand increase for silver was the highest in the last five years. Going by the import figures, the average annual import of silver from 2008 to 2012 was 3,080 tonne, while from 2013 to 2017, the figure was over 5,800 tonne. Increase in the use of silver by the industry was also significant during the period.

Chirag Thakker, director of Amrapali Group, said, “With a refinery of scrap silver jewellery, we have seen a decrease in the purity of scrap which we revived for refining (making jewellery and silverware). The purity decreased from 85 per cent five years ago to 50-55 per cent now. This could be mainly because of an increase in adulterated silver.”

The Amrapali Group is a significant player in myriad businesses such as refinery, jewellery and trading. Managing director of Foresight Bullion India Private Limited Viraj Didwania said, “Silver has been a preferred asset for farmers when they have money to buy or need to sell. But in case of gold, the scenario is quite different. Unlike silver, the yellow metal is not sold frequently and is considered to be a long-term investment.”

India largely imports silver, which touched 5,677 tonne in 2017. In 2015, the import figure was the highest at 7,249 tonne. The survey said increase in silver imports is the result of restocking by fabricators and a pick up in investment demand.

With the value of the white metal touching an all-time high of ~ 75,000 per kg in 2017, it is also turning out to be an investment option.