India’s silver imports are set to rebound in time for the busiest jewelry-buying season after the government issued a raft of new permits, easing restrictions that had stifled shipments to one of the world’s biggest markets.
Traders and bank dealers this week received quotas covering as much as 6,000 tons of silver, according to four people familiar with the matter. The permits are valid for six months, said the people, who asked not to be named because they’re not allowed to speak publicly.
India, which imports almost all of its silver, introduced new licensing requirements in May, one of a number of measures taken to preserve foreign-exchange reserves and defend the rupee. As a result, silver imports initially plunged to a fraction of the country’s demand. In June, monthly shipments hit a three-year low of just 37 tons.
Last year, India imported more than 7,000 tons of silver, a massive wave of buying that helped to trigger a historic short squeeze in the global market. Spot silver was trading around $56 an ounce on Thursday.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing