Silver Prices Reach Record High Amid Festive and Wedding Demand
Silver prices have skyrocketed, reaching an all-time high of Rs 90,000 per kilogram on September 20, 2024. This surge is driven by strong demand during the festive and wedding seasons across India, along with the government's recent reduction of import duties on gold and silver from 15% to 6%.
Rajesh Rokde, Director of Rokde Jewellers and Secretary of the Nagpur Sarafa Association predicts silver prices could climb even higher, potentially hitting Rs 1 lakh per kilogram by Diwali. He attributes this rise to the growing demand for silver, bolstered by the lower import duties.
According to data from the Ministry of Commerce and Industry, silver imports in August 2024 surged to Rs 11,038 crore, a massive jump from Rs 1,317 crore in August 2023. Gold imports also saw a sharp increase, rising by 103.71% to Rs 84,401 crore in the same period.
Kishor Sheth, Director of Batukbhai and Sons Jewellers explained that strong international demand and favourable market conditions have contributed to the soaring prices. The recent import duty cut has made gold and silver prices in India comparable to those in Dubai, reducing the incentive for overseas purchases. As a result, domestic demand for these precious metals has surged.
Sheth also noted that silver is becoming increasingly important due to its use in industries such as electronics, while geopolitical tensions and a slowing global economy are encouraging more people to invest in gold. With over 35 lakh weddings expected to take place in India this year, demand for gold jewellery is projected to rise by 25% compared to last year.
The reduced import duties and strong demand are likely to keep gold and silver prices on the rise in the coming months.
(Note: Prices are exclusive of GST and hallmarking charges.)
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