India is the world's largest consumer of gold and one of the largest consumers of silver, so the trends in its imports tend to have a strong impact on the markets. With that in mind, the news from MineWeb that silver buying in the subcontinent is looking to have a strong recovery represents good news for the metal.
Bullion traders told the magazine that this year, India will buy far more than than the 1,000 tons of silver it bought last year, possibly as much as 1,500 tons. Much of the demand is due to silver's role as an investment and a hedge against inflation.
In many Asian countries, particularly India, investors are cautious of the dangers of inflation or national crises, and stockpiling precious metals like physical gold and silver is a longstanding tradition. There is also a significant component of demand for consumer use, primarily in jewelry. It is the manufacture of jewelry that consumes the majority of India's physical gold imports.
In New York trading, the price of silver futures rose by .46 percent to $17.80 per troy ounce.
