Home / Business and Economy / India Unlocks Silver Supply to Calm Market Premiums
India Unlocks Silver Supply to Calm Market Premiums
22 Oct
Summary
- India approved 6,500 metric tonnes of silver imports for six months.
- This move aims to ease domestic shortages and reduce high premiums.
- Imports were restricted earlier due to foreign exchange concerns.
India has sanctioned the import of around 6,500 metric tonnes of silver for the upcoming six months. This decision is intended to ensure sufficient supply for the crucial festive season and address existing domestic shortages.
The government's move seeks to moderate the premiums on silver within India, which have risen significantly. These premiums had escalated due to prior import restrictions implemented in May and expanded in June, requiring mandatory authorization for silver grain and powder.
Dealers anticipate that the substantial import volume will help lower local premiums, bringing them closer to international benchmarks. This comes after premiums had recently dropped to 45 cents per ounce from previous highs of $2.50.
The approvals occur despite weakened demand for silver jewelry and investment, with many investors hesitant due to recent price corrections and a focus on conserving foreign exchange reserves. Earlier, import duties on gold and silver were increased to 15% from 6%.
