Runwal noted that silver prices are being driven by global economic policies, interest rate trends, and stock market volatility.
However, the high prices are dampening demand in India. He pointed out that investment demand has declined and jewellery purchases have slowed. “At these levels, we don’t see much buying in investments or silver articles,” he said.
Despite weaker demand, India’s silver imports have nearly doubled compared to last year. January saw imports of around 800-850 tonne, with February expected at 750-800 tonne. This reflects strong market interest; even as domestic buyers remain cautious.
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Silver recycling is also picking up, as people exchange old silver for new jewellery, especially for weddings and necessities. However, there is no significant rush to sell silver purely for profit. “People are exchanging old silver, but we don’t see mass selling just because of high prices,” Runwal explained.
Jewellery demand is being sustained by ongoing exhibitions, which are driving sales despite the overall weak investment sentiment. These events are helping maintain some stability in the market amid price fluctuations.
Also Read: Indian government cuts import tariff prices of gold and silver
For the entire interview, watch the accompanying video