Dinar Daily
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Get Daily Updates of the NEWS & GURUS in your EMAIL
CHECK YOUR EMAIL for VERIFICATION

Enter your email address:

3 Reasons Indian Silver Imports Could Fall in 2014 DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

3 Reasons Indian Silver Imports Could Fall in 2014

Post new topic   Reply to topic

Go down

3 Reasons Indian Silver Imports Could Fall in 2014 Empty 3 Reasons Indian Silver Imports Could Fall in 2014

Post by Ponee Thu Mar 06, 2014 9:45 am

3 Reasons Indian Silver Imports Could Fall in 2014
Wednesday March 5, 2014, 4:15am PST
By Charlotte McLeod



3 Reasons Indian Silver Imports Could Fall in 2014 512px-Shiva_01

2013 was a bad year for silver, but a good year for silver in India — the nation broke its 2008 silver import record of 5,048 metric tons (MT), bringing in 5,478 MT of the white metal.

However, while that gain is impressive, word is that India will not be able to sustain it in 2014.

There are three main reasons for that outlook, a recent Reuters article explains. The first of those is price. Silver was attractive to Indian buyers last year in part because it was cheap; it thus stands to reason that it is becoming a less attractive purchase now that it’s becoming more expensive.
Interestingly, it’s not only individual buyers who are being deterred by silver’s higher price. Mineweb quotes France’s Societe Generale (EPA:GLE) as saying in a research report that silver demand, particularly from “the notoriously price sensitive jewellery and silverware segments,” is already on the decline.

The second reason is that India seems poised to lower its gold import duty, which it “hiked … to a record 10 percent last year” in an effort to “curb a ballooning trade deficit.” The higher import duty pushed a large number of yellow metal enthusiasts over to silver, but that doesn’t mean they won’t come rushing back to gold when it becomes more affordable. In fact, Reuters notes that industry experts believe that “[a]ny easing of curbs on gold imports could remove about 2,000 tonnes of demand for silver from investors as an alternative asset.”

Indian Finance Minister P. Chidambaram is expected to review the duty by mid-March.
Finally, Reuters identifies an upcoming Indian election, expected in May, as an event that is likely to direct money away from silver. That’s because much of the candidates’ spending money is expected to come from “illegal or ‘black money,’ which may otherwise have been invested in gold or silver.”

Taking those three factors into account, it seems fairly likely that India’s silver imports will indeed be lower this year. As yet, however, there’s been no word on exactly how low they are expected to fall.

http://silverinvestingnews.com/21968/india-silver-gold-import-duty-price-2014.html
Ponee
Ponee
Admin
Admin

Posts : 38061
Join date : 2011-08-09

View user profile

Back to top Go down

Back to top


 
Permissions in this forum:
You can reply to topics in this forum