Silver, gold imports at six-year low in Gujarat

AHMEDABAD: Low demand for most of the year, high prices in the international market and huge stocks available locally pushed import of gold and silver in the state in 2015-16 to their lowest level in the past six years. Import of silver in Gujarat in the current financial year (till January) stands at 115.66 metric tonnes (MT), the lowest in the past six years while gold imports have fallen to a low of 81.93 MT in the same period.
Data with Gujarat State Export Corporation (GSEC) Ltd indicates that in 2014-15, around 1,425 MT of silver was imported in state while, in 2015-16, the imports have just managed to cross the 115 MT mark, registering a fall of over 91% year-on-year. In the case of gold, 152.24 MT was imported in 2014-15 while in 2015-16 the imports of yellow metal have fallen by 46%.
Jewellers and bullion traders blame the low imports on sluggish demand and high price of silver in the current fiscal. “The year 2014-15 saw record imports of silver. That year the rates of silver were in the range of Rs 33,000-Rs 34,000 per kg. However, since April-May last year, the price of silver has not been consistent and, currently , it has crossed Rs 37,000 mark. This has discouraged traders from importing,“ said Girish Choksi, city-based jeweller. Choksi further said that with the huge inventory available, bul lion traders and jewellers prefer buying from the local market itself.

“The premium on silver is very high when it is imported by air. In the case of imports by sea, the cost comes down to half the rate of air imports. In Gujarat, silver imports come mainly by air.With prices rising, traders preferred importing silver by sea via ports in Mumbai and Chennai ,“ said Chirag Thakkar, director, Amrapali Industries.
On the current spike in prices of gold and silver, Thakkar said that with the Chinese New Year celebrations going on for almost a week, there is hardly any buying in that market. This had resulted in high prices in the international market.