Unbeatable
Big Eyed Bug
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It has already been mentioned in another thread by PMBug and others that India's moves to curb gold sales has been sparking greater demand for silver, but I think if this trend continues this year it will have such a big impact that I thought it deserved its' own thread.
Some general background numbers
1. There's a billion ounces of silver supply available annually (Incl. Scrap), or about 32 000 tons. (Source... http://www.silverinstitute.org/site/supply-demand/ )
That means on average there's about 2600 tons available a month. (However China mines 300 tons+ a month and they are still net importers - http://www.silverinstitute.org/site/supply-demand/silver-production/)
So there are actually only 2300 tons of silver supply available on average per month.
Ok now onto India...
Over the last five years they have averaged imports of 3000 tons a year, or 250 tons a month, which equals about 11% of total demand.
Now this year just between January and May they've already imported 2400 tons! But that's not the most exciting part it's how those numbers have been increasing throughout the year...
http://www.silverdoctors.com/indian-silver-imports-on-pace-for-new-record-in-2013/
So they were averaging their usual 250 tons a month till march. (or 11% of global demand) but in April it shot up to 760 tonnes - 33% of monthly global supply & 920 tonnes in May! 40% of average monthly global supply!
If silver prices stay low and India continues to curb gold sales (which they will) I wouldn't be surprised to see this level of demand continue & even increase!
Some general background numbers
1. There's a billion ounces of silver supply available annually (Incl. Scrap), or about 32 000 tons. (Source... http://www.silverinstitute.org/site/supply-demand/ )
That means on average there's about 2600 tons available a month. (However China mines 300 tons+ a month and they are still net importers - http://www.silverinstitute.org/site/supply-demand/silver-production/)
So there are actually only 2300 tons of silver supply available on average per month.
Ok now onto India...
Over the last five years they have averaged imports of 3000 tons a year, or 250 tons a month, which equals about 11% of total demand.
Now this year just between January and May they've already imported 2400 tons! But that's not the most exciting part it's how those numbers have been increasing throughout the year...
According to industry estimates, silver imports during the January-March quarter stood at 760 tonnes. Imports shot up 720 tonnes in April alone, and in May, they further swelled by 920 tonnes.
http://www.silverdoctors.com/indian-silver-imports-on-pace-for-new-record-in-2013/
So they were averaging their usual 250 tons a month till march. (or 11% of global demand) but in April it shot up to 760 tonnes - 33% of monthly global supply & 920 tonnes in May! 40% of average monthly global supply!
If silver prices stay low and India continues to curb gold sales (which they will) I wouldn't be surprised to see this level of demand continue & even increase!