India’s physical investment in silver fell by 38% in 2023, leading to a 63% decrease in silver imports to a two-year low of 111.7 million ounces. Futures turnover increased by 13% and options trading increased by over five times. Physical investment decreased to 49.3 million ounces due to profit-taking.
India’s physical investment was threatened by the increasing demand for ETPs. A poll by a New York-based institution revealed that high prices and low rural incomes hindered India’s investment in silver.India’s physical investment was threatened by the increasing demand for ETPs. A poll by a New York-based institution revealed that high prices and low rural incomes hindered India’s investment in silver.
Domestic prices increased by 7% due to the rupee’s depreciation, whereas global silver prices declined by 1% during the year. The statement read, “Indian demand for silver has always been price sensitive. As a result, when the price reached new highs last year and held at higher levels (above ₹70,000/kg) for several months, investors were encouraged to take profits while new investors had few opportunities to find deals, with the exception of September and October when the price corrected.”
