Forecasters are opining that in the precious metals' market space silver could turn out to be the long-term favourite given its greater industrial value and it also acts a hedge against over deployment in gold.
All that glitters is not gold and going by this age old adage it is silver, the poorer cousin, that is making an advancement during the global pandemic. The gems and jewellery exporters in India are training their sights on this precious metal coupled with a push for lab grown diamonds to help fight against the slackening demand for the more polished stone in the face of the pandemic. The industry is witnessing a bit of a momentum for large certified diamonds which weigh over 1 carat given that they can be bought online and without physical scrutiny. This surge is being testified by miners as well as India based manufacturers of this precious stone.
But for all practical it is all about the silver lining in what is an otherwise gloomy cloud for the overall industry.
Forecasters are opining that in the precious metals' market space silver could turn out to be the long-term favourite given its greater industrial value and it also acts a hedge against over deployment in gold.
The metal recorded a 40 percent jump from March to August this year - from $553.31 a kg to $906.97. The belief is that as markets return to normal at any point of time silver will increase in its demand thus increasing its price.
Manufacturing of silver jewellery is mostly centred around Surat and Jaipur with Mumbai also exercising a minor influence. Silver exports were pinned at $1.7 billion in FY20 as against a figure of $832 in FY19.
Silver jewellery is manufactured largely in Surat and Jaipur, with minor output in Mumbai. Silver jewellery exports stood at $1.7 billion million in FY20, compared with $832 million in FY19, according to data made available by the GJEPC.
As more countries ponder over a greener future the efficacy of silver gets highlighted further, from rolling out e-vehicles to fixing 5G networks.
Silver is used in electronic devices ranging from smartphones to tablets. It also has its uses in automobile components and solar panels, electricity, aerospace technology where it is an integral part of the production process.
The power generation sector also appreciates the uses of silver especially towards electrical conductivity and in this aspect it is believed to be more useful than copper.
Silver's role as a valued investment was broadly on display during the first half of 2020, as investors actively accumulated silver in the first six months of the year, leading to a 10 percent gain in investment demand. Paving the way was remarkably strong growth in silver-backed exchange-traded products (ETPs)
Given its developing role that will be played in a more greener future silver is more environment friendly than lithium-ion batteries and is used in electric cars as well as consumer electronics.
According to the Global Source The Silver Institute, Silver's role as a valued investment was broadly on display during the first half of 2020, as investors actively accumulated silver in the first six months of the year, leading to a 10 percent gain in investment demand. Paving the way was remarkably strong growth in silver-backed exchange-traded products (ETPs), which have posted successive all-time highs this year, together with solid silver coin and bar investment.
Looking ahead, silver jewelry is expected to weather the storm far better than other precious metals this year. This is due to the relative affordability and greater suitability to online selling. Metals Focus, the independent precious metals consultancy, forecasts an annual decline for global silver jewelry fabrication of just 7 percent against a projected 25 percent slump for gold.