Silver consumption in India is set to halve in 2020 as buyers, mainly from rural areas, skip purchases amid surging prices and a weak economy.
Imports by the world’s biggest consumer may tumble by as much as 50% this year from about 6 000 t in 2019, according to Chirag Sheth, a consultant at London-based Metals Focus. Imports were down by nearly half in the first six months of the year to 1 735 t, he said.
Silver prices in India have rallied more than 60% this year to record highs as bullion gets a lift from declining real bond yields, a weakening dollar and chronic uncertainty over the global economy. That combined with the hit to the economy from coronavirus-related lockdowns that shuttered businesss, resulting in millions losing their jobs, are curbing demand for the metal.