India is the world’s largest market for silver India consumes 20 per cent of silver of world annual silver production, Why? That’s a complicated question, but here are some factors that affect Indian demand for silver.
We have some reasons why the first and the main our list is “Indian weddings” as an Indian religion is known for giving gifts this increase the demand for silver in India in this case Indian weddings are supreme as more than 10 million weddings taking place in India every year and silver is known to bring a good luck so it becomes a necessary thing for gift second can be “consumer by percentage of population” as we all know that gold could not buy for everyone but silver is affordable by 70 per cent of the Indian population, so from this point one more point arises that “overall population” of India is higher as India is the second largest populated country in the world after China that also effects the demand for silver in India, next is investment, Indians always invest in physical assests like land gold and silver also in India the physical demand for the silver is more means people buy gold physically. Major import sources are China, UK, EU, Australia, Switzerland and Russia. but if we talk about Indian silver production then its 27.63 thousand tons of silver.
India’s production of silver has gone up from around 40 to 50 tons to near 207 tons in 2011-12. Rajasthan is the major producing state accounting for about 87 per cent followed by Andhra Pradesh with 5% and Karnataka with 4% share.
Domestic demand for silver is speciously regaining the levels of the early 2000s. Consumption demand for silver was at around 3500 to 4000 tons per year from 2000 to 2005 but it qualified in the following years and stood at 1500 tonne in 2009-10. Yet, demand for silver once again regained and it went up to 2800 tons in 2010-11 and further to 4000 tons in 2011-12. Further, it is likely to go up to 6000 tons by 2017 as per the estimates of the Working Group on Mineral Exploration and Development, some Domestic Spot markets: Mumbai, Jaipur, Ahmedabad.
Factors Influencing Prices:
- Supply condition from mine production as well as recycling.
- Global macroeconomic developments.
- Socio-political proceedings in major producing and consuming countries.
- external trade policies, tariffs and restrictions by the country.
- Domestic inflation and other economic developments.