India’s purchase of silver dropped 38% in 2023, but demand will go up in 2024, says Silver Institute report 

Demand for jewellery and silverware too dropped on the basis of higher domestic prices, infers the survey. While global silver prices fell 1% intra-year, the depreciation of the rupee saw domestic prices rise by 7%. However, there are bright prospects for silver demand to rise in India in 2024 

Mumbai: According to a recent survey conducted by non-profit international association, Silver Institute, India’s physical investments in silver fell by 38%, accompanied by a decrease in demand for silver jewellery and silver items. The ‘World Silver Survey 2024’ noted that as a consequence of these trends, India’s imports of silver dropped significantly, decreasing by 63% to a two-year low, with a total of 111.7 million ounces imported in 2023. This significant reduction in imports and demand marks a substantial shift in the country’s silver industry dynamics.

Meanwhile, silver has been outpacing gold’s gain so far this year, and the global market for the metal is poised to mark a fourth straight yearly supply deficit, says the report.  

In India, physical investment in silver decreased to 49.3 million ounces from a previous 79.4 million ounces. This decline was driven by record-high silver prices in rupee terms, which led investors to take profits. Moreover, the high prices provided only limited opportunities for new investors to enter the market at lower prices. This downturn follows a period of significant growth where the country’s silver demand had doubled. 

While global silver prices fell 1% intra-year, the depreciation of the rupee saw domestic prices rise by 7%. “Indian silver demand has always been price-sensitive. Therefore, the price achieving new highs last year and holding at higher levels (above Rs 70,000/kg) for several months encouraged investors to take profits while fresh investors had little opportunity for bargain hunting except for during September and October when the price corrected,” the report said. 

However, the survey saw bright prospects for silver demand in India in 2024. Jewellery fabrication is expected to recover in 2024 by a modest 4% across the globe, with India expected to be the biggest contributor, in part as restocking by retailers resumes, the survey maintained.  

Retail Jeweller India News