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Silver imports may rise by 10% in the current fiscal as rural India is leaning towards the metal – known as the poor man’s gold – as its price has dropped by 3.29% from a year ago.

Traders and analysts believe that there’s room for silver prices to move up in tandem with base metals which are showing an upward trend, which is also attracting rural buyers towards silver. Price of silver is currently hovering around₹39,270 per kg. “The demand for silver is rising in rural India as the price recovery of kharif crops had been good. Also, gold prices are shooting up which is why rural folks are buying silver instead of gold. The Met department has forecast a normal monsoon this year which is expected to spur demand for silver further in the coming months. Keeping all these parameters in mind, the trade is expecting a 10% increase in imports of silver,” Haresh Acharya, secretary, Bullion Federation, told ET.


Surendra Mehta, national secretary of India Bullion and Jewellers Association (IBJA), said, “Thirty-year historical average of gold-to-silver ratio is around 66. However, currently it is hovering around 80. For an ounce of silver priced at $16.42, price of gold is $1,317.25 per troy ounce. If we take historical goldto-silver-ratio of 66, then silver rate should be $20 per troy ounce. Thus, there is possibility of silver to cross₹47,000 per kg.”


Basically, the gold-to-silver ratio is the amount of silver it takes to purchase one ounce of gold. Investors who deal in bullion monitor the gold-to-silver ratio.