Silver in India to outplay gold as long term savings bet

Author: Paul Ploumis
10 Nov 2014 Last updated at 07:31:35 GMT
MUMBAI (Scrap Monster): The prices of gold and silver have plunged significantly during the past two years. The fall has aggravated in recent months. However, between the two, Indian customers prefer Silver as a stronger bet for long term investment. The white metal is finding increased demand from jewelers in India. Investors too are looking more interested to make long-term investments in Silver.

The Silver imports by the country have gone higher ever since the government imposed strict curbs on gold imports into the country. The jewelers in the country are seen adding to their Silver inventory levels in anticipation of increased demand and price during the upcoming months. However, overall Silver imports by the country may just fall short of previous year levels, trade sources indicate.

According to jewelers, Silver jewelry is soon becoming a trend among the young generation. Moreover, the demand for Silver gift articles has shown strong growth during the past several months.

The Washington-based Silver Institute forecasts rapid growth to Silver demand in the years to come. The report published by the Institute states that investors around the world are likely to purchase nearly 1 billion ounces of silver over the next decade. This big rush for Silver is likely to push the prices to higher levels, it adds. Furthermore, the metal’s industrial use is expected to remain robust over the next decade.

The gold-silver ratio is currently at five-year high of 74.7 as against the 10-year average of 57.75. The high ratio indicates that Silver has fallen too much when compared with gold and that Silver prices are most likely to bottom out in the near-future and ultimately outperform gold in the long run.