Silver Demand Plunged in 2019, Imports Nosedived 40%

SEATTLE (Scrap Monster): The latest data published by the Ahmedabad Air Caargo Complex suggests that silver demand was hit badly during the previous year, mainly on account of huge drop in demand from rural population. The demand for silver in terms of bullion and jewellery recorded decline in 2019.

As per data, the imports of silver witnessed notable decline by almost 40% in 2019, when matched with 2018. The imports totalled only 89.9 metric tonnes in 2019. This compared with the total silver imports of 150.7 metric tonnes in 2018.

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According to Haresh Acharya, director, India Bullion and Jewellers’ Association (IBJA), people in rural areas tend to be the key drivers of the country’s silver demand. The stress on account of severe agrarian crisis, has badly impacted silver demand in the country, he added. The high prices of silver too have resulted in muted investor demand for the precious metal, Acharya added.

The decline in silver import volumes was also on account of increased supply of recycled silver, said Ashish Zaveri, media convener, Jewellers’ Association of Ahmedabad (JAA).