The Next China for Silver
China’s dominance of the solar manufacturing industry runs to the tune of +80%, so it’s not surprising that country dominates silver headlines.
But investors need to take stock of India’s growing influence on silver markets. Long known as precious metals afficionados, Indians have been storing their wealth in gold and silver for a very long time.
Indians buy gold and silver as a method of savings, especially because it can always be sold for cash if needed, and because they have little trust in their currency which has gone through endless, dramatic cycles of debasement.
Indians are big gold buyers, and they buy with excess cash following their harvest season. Hindus will often wait to make larger gold purchases for their fall festivals of Dhanteras and Diwali.
India and East Asia together represent about 65% of global silver jewelry demand. Silverware represents about 6% of silver demand, with most of that coming from India.
Although India’s affinity for silver has mostly been for physical coins and bars, silverware and silver jewelry, the nation of 1.45 billion people is enjoying a strong and growing economy. As the country continues to modernize, they are turning to renewable energy along the way,
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