India to purchase 22% of world silver production and 44% of investment silver this year as tax impacts gold consumption

India has emerged as among the biggest consumers of silver from almost zero a year ago because the taxation of gold is switching precious metal investors to the second monetary metal, David Franklin at Sprott Asset Management told our friends at Agora Financial ‘For perspective, the world’s silver mines produce approximately 24,000 tonnes of silver, so this new buyer is purchasing approximately 22 per cent of world silver production, compared with almost zero last year,’ said Mr.

‘And when you consider that approximately half the silver production is used for investment purposes, Indian buyers are on track to buy 44 per cent of the world’s mined silver available for investment.’ Despite the shift in physical buying from gold to silver in India the actual price is set in the Comex futures pit by the trading of electronic futures contracts that are a hundred times more numerous than real ounces of silver.

They are taking advantage of a pricing anomaly to buy silver at very low prices.

Categories: Business

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