Though silver prices have been hitting new lows in India, there is a beacon of light at the end of the tunnel for the precious metal. With silver jewellery exports significantly increasing over the past financial year, bullion experts maintain the prospects for silver jewellery this financial year, 2014-15, look especially bright.
Exports of silver jewellery during April 2013 to March 2014 grew 58.57% at $1,459.87 million, though it was up 75.40% in rupee terms, over the comparative figure of $920.62 million for April 2012 to March 2013.
According to data from the Gems and Jewellery Export Promotion Council, silver jewellery exports brought in $1,460 million. An optimistic Vice Chairman of the Council, Pankaj Parekh said, “There are several factors that show good prospects for jewellery, especially silver jewellery, in 2014-15. The government’s 80-20 scheme might get diluted, import duty is expected to be rationalised as India’s apex bank has already allowed four more banks to import gold, and there is a huge demand in the international market for our jewellery.”
He added that the trade organization expects a boom in silver jewellery exports, with 10% more exports expected to come in this year as compared to 2013-14.
Stating that demand from the US, China, Russia was “exhilarating,” Parekh said these markets, “are set to pave the way for silver jewellery studded with diamonds and precious stones, and would play a major role in gems and jewellery exports from India.”
Silver prices have been on the decline on the Multi Commodity Exchange (MCX) here. While silver prices have slipped 28% in the June series on the bourses, the MCX silver August contract has also slipped. Silver prices have also slipped 19% in the July series.
Though the MCX silver May contract was trading slightly up at 0.03%, at $707 (Rs 42,620), silver prices have moved down $167 (Rs 10,086), or 18.88% in the July series so far, said analysts.
They added that silver prices have moved down 9.98% in the June series, while the MCX silver August contract was trading down 0.53%. Silver prices have moved down 12.66% in the August series so far, they said.